@ Nuno Duarte | ⚡️🟠 University of Satoshi
2025-01-08 16:36:40
Lets start with the money talk, at its core, a good form of money is created from two key ingredients: time and energy.
**Money = Time + Energy
**
This simple idea explains why money has value. Time is something we can never get back, and energy is what powers everything we do, both mentally and physically. Together, they create value.
Why Energy is So Important
Energy is what keeps life going. It’s essential for everything we use and do every day. For example:
- Food without energy to cook is raw and not very tasty.
- A car without energy doesn’t go anywhere.
- A person without energy feels tired and can’t work or play.
- Your work without energy gets nothing done.
- Football without energy means no running, no cheering, and no fun.
- A phone without energy is just a useless object.
- A house without energy is cold, dark, and uncomfortable.
- Transportation without energy means no moving buses, trains, or planes.
- The internet without energy means no websites, no games, and no communication.
- Nature without energy means plants don’t grow and animals can’t survive.
**And what about money without energy?
**
We often hear that *“time is money”* but if money is created without any time or energy, it becomes worthless. That’s why energy is so important in giving money its value.
**Why Bitcoin is Different**
Bitcoin is special because it follows the equation of money perfectly. It’s the best kind of money because it requires both time and energy to exist. Here’s how:
- Time: Bitcoin’s network is designed to create new bitcoins at regular intervals, so time is built into the system.
- Energy: Bitcoin is made using a process called Proof-of-Work, which uses real-world energy to produce and secure it. This ties its value to effort and cost.
Thanks to this process, Bitcoin is:
1. Scarce: There will only ever be 21 million bitcoins. It can’t be copied or faked.
2. Reliable: Its value is tied to real-world energy, making it solid and trustworthy.
3. Effort-Based: No one can create bitcoins out of thin air. It takes real work.
This makes Bitcoin an honest form of money, free from manipulation or shortcuts. It connects the digital and physical worlds through energy, just like gold was in the past, requiring time and energy to extract and maintain its value.
**The Problem with Regular Money (Fiat Money)**
On the other hand, fiat money, the kind printed by governments, doesn’t follow the same rules. It’s made without effort, just by pressing a button. This leads to big problems:
1. Inflation: More money is printed, making the money you already have worth less.
2. Manipulation: Governments and banks can change the rules whenever they want.
3. Unfairness: People closest to the money printers benefit the most, while everyone else pays the price.
4. Fiat money breaks the rule of time and energy. It’s just a symbol, not a true store of value.
**Henry Ford’s Energy Currency Idea
**
Over 100 years ago, Henry Ford had a bold idea: What if money was based on energy? He believed energy was the ultimate resource because it’s measurable and valuable to everyone.
Bitcoin brings Ford’s vision to life. Its Proof-of-Work system ties money directly to energy. Bitcoin acts as a global, incorruptible energy currency that rewards effort and aligns money with real-world value.
**Why Energy-Based Money Matters**
Money that’s rooted in time and energy isn’t just an idea, it’s a principle we live by every day. To truly understand the value of energy and effort, let me share a personal story.
Every single day of the week, I train. I pour my energy and effort into CrossFit, pushing my body and mind to their limits. Last year, during a competition, I achieved something I’d never done before: 12 ring muscle-ups. Before that, my maximum was just three. Through consistent training, spending my time and energy at the gym, I earned that reward. It wasn’t easy, but it was worth it.
This is Proof-of-Work in action. Just like my training required time and energy to achieve results, Bitcoin requires time and energy to exist. Its
Proof-of-Work mechanism ensures:
- It can’t be faked or inflated.
- It rewards hard work and energy, not shortcuts or manipulation.
- It restores trust by linking value to real-world effort.
In a world where fiat money can be printed without effort, Bitcoin shines as a clear and honest form of money. Like the work I put into my training, Bitcoin ties time and energy to value, creating a system that’s fair, transparent, and built to last.