Skip to main content

Electricity, a real currency

Value is a strange thing. What do humans really value? Food? Housing? Clothes? Well, of course those things have intrinsic value as we need them to survive. But to have an economy you can't rely on food or other items required for survival as once they're spent, they're spent forever. We need something which can be spent for good but produce something which can stay in circulation forever, or at least for quite a long time. We also need something that cannot be easily destroyed, cannot be forged and is easily identifiable as the item in question. Most importantly, we need something which humans identify as truly valuable. Thus, this something should also be able to be used for other purposes, without removing value from the a potential byproduct which may have the qualities mentioned and can be used as money.

For centuries, this concept has found refuge in precious, or rather let's call it rare, metals. Silver, platinum, gold and many others, with the most valuable being gold. Gold actually can fit most of the above qualities. However, gold is not really being used for anything other than semiconductors and possibly in very few other endeavours. Also, what's more a problem with gold, is that for as long as we've been using it as money, it's been sitting in large vaults doing literally nothing, just backing up paper money. It's as if we could just imagine that we have it. On the other hand, using it as coins or carrying it around in any raw form is not convenient.

These reasons have lead us to the concept of cryptocurrencies. The creator of Bitcoin has opened us to a new realm of possibilities, by doing the unthinkable. He or she, have managed to create a means of taking the kilowatt and storing it in a digital form. The kilowatt, or electricity if you'd prefer, can be a form of currency that fulfills all the conditions mentioned in this writing. Nobody can dispute the fact that energy is currency. However until recently, there was no easy way to store it to buy other things with, in an effective way. I mean sure, you can trade gas, oil, plutonium and any other material which has the potential to create energy. But this is the first time in history that we can use electrical consumption as a byproduct to be stored and used as a currency that fulfills all the required conditions to make it be considered valuable.

Remember, as dollars used to be backed by gold, cryptocurrencies are backed by kilowatts. The real beauty of this though is that we don't need to have the kilowatts sitting around doing nothing. We convert some of them to cryptocoins in order to use them and we use others to run our fridge.

The more efficient and cleaner methods we employ to generate electricity in the future, the more valuable our bitcoins will be.



  1. Valuable article. It shows the importance of Electrician Springfield in our daily lives. Thanks for the post.


Post a Comment

Popular posts from this blog

If Bitcoin is better than fiat why is adoption slow?

Bitcoin adoption is not slow. On the contrary a few million people use it just after 9 years after it was introduced. The people actually love the idea of Bitcoin, but they're scared to have to store Bitcoin for themselves. Even with all the bank scandals in the world, even with the Cyprus haircut and the Greek capital controls, the people still prefer to have the bank handle their money.

In a sort of sense they are right. It is difficult to handle fiat currency safely and securely. If one has $50,000 in savings, it's not considered the safest bet to store them at home, even in an unbreachable vault. For what it's worth, for $50,000 thieves are willing to break the wall surrounding the vault and carry the entire vault with them until they can find a way to open it. Similarly, the other kind of thieves -banks and politicians-, can simply pass a law that decides that all deposits bigger than $5,000 will be used to bailout the bank institutions or the government. Magically i…

The Bitcoin white paper before Satoshi decided to call it "Bitcoin"

The below is probably not the original PDF, however it contains what I and a few others consider to be the original writing (based on review from Wei Dai possibly).

Edit: As confirmed by Gwern this document's source is from another fake Satoshi. As it was emailed to me anonymously from someone that keeps sending me stuff like this anonymously (possibly an encounter I had on a forum or mailing list), the best source to verify such a document would be from the people who have already done some research on this. Have a read on Gwern's page about the ecash.pdf document and the Nakamot/Dai emails