Bitcoin can be understood as a place to store your time and energy in a way that respects the principles of thermodynamics. When you work, you expend your time and energy, creating value. Bitcoin acts as a system that conserves this energy, much like how energy is conserved in thermodynamics—it cannot be created or destroyed but transformed.
When you convert your time and energy into Bitcoin (through work or mining), it is stored securely and cannot be arbitrarily inflated or devalued, unlike fiat currency. This makes Bitcoin a reliable store of energy you can access in the future, preserving the value of your efforts over time.
Fiat currency, unlike Bitcoin, fails to respect the principles of thermodynamics because it operates in a way that destroys the energy and time you put into earning it. Here’s why fiat is destined to fail and Bitcoin will prevail:
1. Fiat Inflates and Destroys Your Stored Energy
• Fiat currencies are created without limits, often devaluing the money you’ve earned through inflation. This is equivalent to a system leaking energy—it fails to conserve the time and effort you’ve invested.
• Governments and central banks can print fiat at will, eroding the purchasing power of your savings. In thermodynamic terms, this is an open system with massive entropy, where energy (value) dissipates and cannot be reliably stored.
2. Bitcoin Preserves Energy Over Time
• Bitcoin, by design, operates like a closed thermodynamic system. Your time and energy, once converted into Bitcoin, are conserved because of its finite supply and decentralized nature.
• Through Proof of Work (PoW), Bitcoin transforms real-world energy into secure, incorruptible value. This process ensures that the energy spent mining Bitcoin is permanently tied to the network, making it impossible to counterfeit or dilute.
3. Fiat Ignores Scarcity, Bitcoin Enforces It
• Scarcity is a fundamental principle of thermodynamics and nature. Fiat currencies ignore this by introducing infinite supply, leading to waste, inefficiency, and collapse.
• Bitcoin enforces scarcity through its hard cap of 21 million coins, ensuring that your stored energy retains value indefinitely, with no risk of dilution or inflation.
4. Bitcoin Aligns with Universal Laws
• Bitcoin is rooted in natural principles: energy transformation, conservation, and scarcity. It mirrors how thermodynamics governs systems, making it inherently sustainable and resilient.
• Fiat, by contrast, is detached from these principles. Its reliance on arbitrary human policies creates inefficiency and instability, like a machine overheating and breaking down.
Why Bitcoin Will Prevail
• Fiat systems are entropy-driven, doomed to collapse under the weight of inflation and unsustainable debt. They cannot preserve the energy or time you’ve worked for.
• Bitcoin is entropy-resistant, a fortress for your time and energy, ensuring they are conserved and available in the future. It is the only monetary system designed to operate in harmony with the unbreakable laws of the universe.
In simple terms: Bitcoin is a thermodynamic battery for your life’s work. Fiat is a leaking bucket. When time and energy matter, Bitcoin is the only sustainable choice.