15. Bitcoin of the Lambs

Using a Mental Modeling approach borrowed from Hannibal Lecter of Silence of the Lambs, Jeremy and Myron discuss Bitcoin.

4-level model of Bitcoin:

• Essence
  • Protocol
• Function
  • Ledger
• Characteristics
  • Cryptographically secure
  • Fixed supply
  • Decentralized
  • Intangible
    • Something you know, not something you have
  • Novel
• Role
  • Bitcoin is money
  • Characteristics of a Money Commodity
    • Scarce
    • Fungible
    • Divisible
    • Portable
    • Transferrable
  • Functions of Money
    • Store of value
    • Medium of Exchange
    • Unit of account
  • What about the Regression Theorem?
    • Bitcoin had subjective value to early adopters because of its novelty and its recognizable monetary potential
    • The theory and historical understanding of money was well established – we didn’t need a slow evolution from commodity to money. It was very fast because it was obvious to some people.