Date: Monday 4th May
Project: Parallax Digital
Role: Founder & CEO
The properties for measuring the soundness of money include divisibility, durability, portability, recognizability and scarcity. Current government-issued and controlled fiat money fit some of these characteristics but, with the central bank’s ability to print money at will, the current system completely fails as a scarce resource.
Historically metals have been the best form of money, with gold outcompeting all other metals to become the number one metal used as a currency and store of value. It is durable, recognisable and scarce; however, government-issued fiat became a better form of cash as it is more portable and divisible. Since 1971, when the US came off the gold standard, and the government has been able to issue more fiat, the purchasing power of the dollar has fallen. As such, gold has proven to be a better store of wealth than fiat.
Many see Bitcoin as digital gold with the added benefits of being highly divisible and able to be sent anywhere in the world quickly and at low cost. Bitcoin also offers censorship resistance, immutability and the ability to store wealth out of the reach of the government.
Bitcoin is a new paradigm in money.
In this interview, I talk to Robert Breedlove the Founder and CEO of Parallax Digital. Robert recently wrote An Open Letter to Ray Dalio explaining how Bitcoin will reshape the world. We discuss Bitcoin’s ability to outcompete the current financial system.