An item being "one-of-a-kind" (scarce) does not inherently make it valuable if it lacks utility or liquidity. Bitcoin, however, possesses massive, global, and growing utility as a decentralized, censorship-resistant settlement network. Gold has maintained its status as a monetary metal precisely because its supply is difficult to inflate (it is relatively scarce but not finite). To compare Bitcoin to "constant inflation" gold is to ignore that Bitcoin’s stock-to-flow ratio is fundamentally different from gold’s and, more importantly, strictly programmatic and verifiable.
Also, there is a difference between coerced utility (the USD, which you are forced to use for taxes) and voluntary utility (Bitcoin). The "network effect" of Bitcoin isn't just about merchant count; it is about the security of the hash rate and the distribution of nodes. This is constantly improving as USD has fallen 97% and altcoins have all failed long term (hence why I posted the XMR/BTC chart - every single alt chart looks the same because of the first mover effect).
Sound Money is not solely about having a fixed supply; it is about having a supply that cannot be manipulated by central authorities or protocol. Tail emissions (as found in Monero) introduce a perpetual dilution of the supply, which (regardless of the technical rationale) is a deviation from the absolute scarcity that is a necessary prerequisite for a "hard" asset that can compete with the USD long-term. You can’t beat an infinitely printed asset backed with violence without the opposite approach - a finite and voluntary decentralized currency…
kymafi / Kyma Fi
npub13m…zv576
2026-05-24 11:16:38 UTC
in reply to nevent1q…9d4c
Author Public Key
npub13mhm4fxurhw4pz076twmqttwc03ge5wxdgulaakvp9pxeceaczdqyzv576Seen on
wss://nos.lolPublished at
2026-05-24 11:16:38 UTCEvent JSON
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"content": "An item being \"one-of-a-kind\" (scarce) does not inherently make it valuable if it lacks utility or liquidity. Bitcoin, however, possesses massive, global, and growing utility as a decentralized, censorship-resistant settlement network. Gold has maintained its status as a monetary metal precisely because its supply is difficult to inflate (it is relatively scarce but not finite). To compare Bitcoin to \"constant inflation\" gold is to ignore that Bitcoin’s stock-to-flow ratio is fundamentally different from gold’s and, more importantly, strictly programmatic and verifiable.\n\nAlso, there is a difference between coerced utility (the USD, which you are forced to use for taxes) and voluntary utility (Bitcoin). The \"network effect\" of Bitcoin isn't just about merchant count; it is about the security of the hash rate and the distribution of nodes. This is constantly improving as USD has fallen 97% and altcoins have all failed long term (hence why I posted the XMR/BTC chart - every single alt chart looks the same because of the first mover effect). \n\nSound Money is not solely about having a fixed supply; it is about having a supply that cannot be manipulated by central authorities or protocol. Tail emissions (as found in Monero) introduce a perpetual dilution of the supply, which (regardless of the technical rationale) is a deviation from the absolute scarcity that is a necessary prerequisite for a \"hard\" asset that can compete with the USD long-term. You can’t beat an infinitely printed asset backed with violence without the opposite approach - a finite and voluntary decentralized currency… \n",
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