Everything in the (observable) universe is ultimately governed by the laws of physics. This includes everything from observable phenomena at the cellular and molecular level to what we can observe in the most distant of galaxies. At its most simplistic level, this centers around energy and energy as a state of matter, something that cannot be created or destroyed, only transferred between entities (first law of thermodynamics).
One of the least thought of ways that energy is present in our world today, until the advent of proof-of-work in Bitcoin, is how the concept of energy applies to money. Despite this, monetary energy is arguably the single most important practical implementation of energy transfer in the world today because it’s the signal of all of the work that people individually and collectively output transferred from our physical selves into the world. As a practical example — to build a bridge, it takes work from the people that are building that bridge, as they are transferring energy in the form of physical labor to build that bridge and are expecting energy in return in the form of getting paid.
The distinct problem that we have today is that the monetary energy in the world is fundamentally distorted to the point where the signal is completely broken. Central banks have routinely bailed out Cantillon insiders and distorted the real cost of capital through interest rate manipulation. This has caused all understanding of monetary value to be lost. Monetary energy can only function optimally in a totally free, uninhibited market. The further distorted the markets become, the less “real” signal the monetary energy produces, and therefore real productivity becomes more distorted from that signal.
Practically what this means is that monetary energy can no longer be transferred across time in a reliable manner. Salability of energy is a key factor in not distorting the monetary energy because I need to know that my purchasing power is going to…