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Neither Rafi nor I saw what was happening. No one did. That computers would take over our lives: Sure. But the way that they would turn us into different beings? The full flavor of our translated hearts and minds? Not even my most enlightened fellow programmers at CRIK foresaw that with any resolution. Sure, they predicted personal, portable Encyclopedia Britannicas and group real-time teleconferencing and personal assistants that could teach you how to write better. But Facebook and WhatsApp and TikTok and Bitcoin and QAnon and Alexa and Google Maps and smart tracking ads based on keywords stolen from your emails and checking your likes while at a urinal and shopping while naked and insanely stupid but addictive farming games that wrecked people’s careers and all the other neural parasites that now make it impossible for me to remember what thinking and feeling and being were really like, back then? Not even close.

What constitutes the practical and realistic limit to the quantity of any resource is always the amount of human time that is directed toward producing it, as that is the only real scarce resource (until the creation of bitcoin).

One, bitcoin is not a stand-alone currency but a unit of accounting attached to an innovative payment network. Two, this network and therefore bitcoin only obtained its market value through real-time testing in a market environment.

The case for bitcoin as a cash item on a balance sheet is very compelling for anyone with a time horizon extending beyond four years. Whether or not fiat authorities like it, bitcoin is now in free-market competition with many other assets for the world’s cash balances. It is a competition bitcoin will win or lose in the market, not by the edicts of economists, politicians, or bureaucrats. If it continues to capture a growing share of the world’s cash balances, it continues to succeed. As it stands, bitcoin’s role as cash has a very large total addressable market. The world has around $90 trillion of broad fiat money supply, $90 trillion of sovereign bonds, $40 trillion of corporate bonds, and $10 trillion of gold. Bitcoin could replace all of these assets on balance sheets, which would be a total addressable market cap of $230 trillion. At the time of writing, bitcoin’s market capitalization is around $700 billion, or around 0.3% of its total addressable market. Bitcoin could also take a share of the market capitalization of other semihard assets which people have resorted to using as a form of saving for the future. These include stocks, which are valued at around $90 trillion; global real estate, valued at $280 trillion; and the art market, valued at several trillion dollars. Investors will continue to demand stocks, houses, and works of art, but the current valuations of these assets are likely highly inflated by the need of their holders to use them as stores of value on top of their value as capital or consumer goods. In other words, the flight from inflationary fiat has distorted the U.S. dollar valuations of these assets beyond any sane level. As more and more investors in search of a store of value discover bitcoin’s superior intertemporal salability, it will continue to acquire an increasing share of global cash balances.

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