Bitcoin is the perfect money in that it embodies all of the properties and functions of money — as a store of value (SoV), medium of exchange (MoE) and unit of account (UoA) — and does so in a way that any person or participant, from anywhere in the world can:
- Save without having their wealth invisibly stolen
- Spend without some big-brother-type institution telling them with whom or what they’re allowed to do so
- Account for, audit and verify what they have, when they received it and how much it is in relation to the whole supply.
Furthermore, it’s all possible sans any form of trusted intermediary, government regulation, prudential oversight or “decree by the anointed.”
Money is arguably the most important invention of mankind, and is the mechanism by which we measure time and energy and the communication medium through which we collaborate. It’s critical for the formation of any society more complex than a few hundred people and without it we cannot scale any division of labor nor can we scale any form of production beyond self-subsistence.
And here we are now in 2020, 12 years (to the day, as of this writing) since Satoshi released the white paper, for what’s likely the apex money (at least on this planet).
What does this have to do with Bitcoin’s circularity?
Well, if bitcoin is the next and final global money, then by definition (and by design) it is already circular. It’s a monetary unit and a financial network which already embodies all of the elements required for a global economic system.
So it’s not a question of “if,” or even “when,” but more a question of progress, magnitude and necessity.
I wrote an article recently, entitled “Bitcoin & Lockdowns,” in which I put forward a model of understanding Bitcoin’s long-term adoption curve, through the lens of necessity.
In it, we find a simple answer to the question:
Q: “When circularity?”
A: “As it becomes more of a necessity.”
“Necessity is not only the mother of all…