Currency & Money

I have been researching historic global currencies and monetary systems in general, and have a theory that I would be curious to hear thoughts on.

• In the beginning of commerce, people were limited to either barter or measure precious metals to estimate worth. This was extremely slow and limited economic expansion.

• Money & Currency need to coexist. Money is hard assets of stored value, currency is often pegged to money, but it needs to be less volatile. When governments got involved throughout history they have created a currency (typically backed by money) to standardize exchange.

• Though the Federal Reserve is bullshit, they do 1 thing I appreciate which is to try to stabilize the currency to make the economic transactions less volatile.

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In the event that all fiat currencies die and let's say only Bitcoin exists, that means that the whole world value would be measured against Bitcoin. As the world continues to innovate and produce more at say X rate, that means that the purchasing power of Bitcoin would continue to grow at X rate. Merchants would be constantly lowering the prices by X - this is problematic. Not that Bitcoin and the free market couldn't technically function, I just think it would slow economic expansion down.

So I had been thinking, how do we create a currency that is universal to the world that can be exchanged so that Bitcoin can be the money that it is pegged to? My thought went further to the concept of a heavily automated world where less and less human labor is needed.

My answer: Wattage. If Bitcoin was $10,000,000 a coin, the mining industry would explode as it would be so profitable to mine. As the mining industry grows to match such a high value, eventually the network would become so difficult that it would level off again around the price of electricity. Same thing would happen in reverse, a $1,000 coin would shut most of the mining rigs down until things stabilize once more.

Wattage is the same in every country, and is universally used. It has an unlimited supply allowing it to expand with the rate of economic expansion, and the mining industry as previously written essentially does the 1 good thing from the Federal Reserve automatically.

In conclusion, I think the human race needs to adopt Wattage as our exchange unit of currency; and Bitcoin would be the medium in which it is exchanged. If my theory here is remotely accurate, the day any country begins to sell Bitcoin for any form of energy (could be Oil) I think we will see the incredible parabolic rise of crypto. My estimate is that this can only take place once BTC surpasses Gold's Market Cap as it will need to have the liquidity to support massive exchanges.

TLDR: "Bitcoin is worth Bitcoin" will have limitations to economic expansion. Bitcoin is the king of money, but we will need to have a universal value to always measure Bitcoin against. I believe that Wattage is the best currency to do so. I believe that we will exchange and pay for things in Bitcoin, but the prices should be in Watts.