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Reevaluating the Measure of Value in the Digital Era
📖 I just finished reading Pierre Noizat’s book “L’Énergie face cachée de la monnaie” (“The Hidden Energy of Money”).
⚡️ It’s a fascinating journey through diverse ideas, bridging belief systems (fiat money) to money as a representation of energy, and even offering a simplified analogy between the laws of thermodynamics and monetary systems. This aligns closely with my current research focus, following my papers on Bitcoin’s energy efficiency compared to banks and Bitcoin’s censorship resistance. (https://www.valuechain.pro/fr/crypto-news)
🙏 Thank you, Pierre, for sending me your book and for contributing to the ongoing reflections on Bitcoin and money in general, with your approach that combines scientific, social, historical, and economic perspectives.
💡 As you highlight, the “baguette index” reveals the flaws of fiat money. A typical French worker needed about 10 minutes of labor to buy 250g of bread at ≈ €0.10 in 1970, whereas today they need only 5.2 minutes of labor, but at a price of ≈ €1. Over the past 50 years, labor efficiency has doubled (x2), yet the price of the bread has increased tenfold (x10) instead of being halved (÷2)! Fiat money is therefore not a reliable measure of value, whereas 250g of bread have always retained the same intrinsic value.
#Bitcoin, on the other hand, is a currency that better preserves value over time, avoiding the devaluation issues of fiat currencies. For those who criticize Bitcoin for lacking intrinsic value, they fail to understand that Bitcoin is the only currency with intrinsic energy value(unlike gold, which has been demonetized or cannot circulate easily on the internet!).
⇒ To order the book for Christmas: Amazon link
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