Is Bitcoin Digital Energy?

This idea is based in the words of Nikola Tesla “If you want to find the secrets of the universe, think in terms of energy, frequency and vibration.”  It is critical that we define energy in order to determine if the claim can be made. According to Merriam-Webster energy can be defined as “a fundamental entity of nature that is transferred between parts of a system in the production of physical change within the system and usually regarded as the capacity for doing work.” By this definition Bitcoin that is accumulated through somebodies’ effort and time (a fundamental entity of nature) can be transferred between anybody and can result in the increased capacity to do work.

Some say this claim isn’t special and the same can be made about fiat currency being a form of energy and taken in isolation this claim is correct, but it is not in isolation. While both Bitcoin and fiat currencies are forms of energy they operate at different frequencies.

Frequency defined by Merriam-Webster as “the number of repetitions of a periodic process in a unit of time.” When comparing Bitcoin to fiat currency (energies) inflation is the frequency at which the value of each fluctuates. While inflation is calculated in different ways, when breaking it down to first principals’ inflation is positively correlated to the rate of change in the supply of currency. By design currencies are set to inflate at a frequency of 2%-3% annually this is in direct contrast to Bitcoin which has a known finite supply meaning the supply inflation of Bitcoin will always be zero. So, these energies are transferred at different frequencies will propagate a vibration defined as “a periodic motion of the particles of an elastic body or medium in alternately opposite directions from the position of equilibrium when that equilibrium has been disturbed”. Vibration is where these energies do work. The vibration is the purchasing power that one has when using a fiat currency or Bitcoin. This leads me to believe that Bitcoin is a form of digital energy.

While defined in this context, the frequency of a currency is inversely related to the amount of energy it can transfer. This means that the greater the frequency of a currency the worse it is as a store of value over time. This signals that over the course of time Bitcoin as a digital form of energy is more efficient than conventional forms of energy. Many argue that Bitcoin, like fiat, is just a transfer of wealth and not energy. The flaw in this logic is that wealth is a function of energy and time meaning that fiat, Bitcoin any sort of money are energy derivatives. 

Well some may be asking what makes Bitcoin so special that it is now a form of digital energy? During the lecture Saylor talks about having MP4 files that play video and music as a form of digital information. Why this is not a digital energy is because the MP4 is not unique, it can be copied and replicated which greatly reduces the value of it. Bitcoin cannot be replicated, there will only ever be 21,000,000 BTC ever in existence.  This paired with the fact that entities like the IRS classify BTC as property in which banks can take out loans backed in Bitcoin means that Bitcoin can act as a form of digital energy. Saylor equates this to humanity find a new sunny and that hundreds of trillions of dollars can be created from this. Is this hyperbole or possible reality? Eventually time will tell but there is a chance that this digital energy could produce transcendent change for society.