Seonglae ChoCapital Securities
Money serves the role of converting goods and services into information
The fact that product prices fluctuate more due to monetary policy than due to changes in value implies that currency itself is a commodity and is evolving to be viewed as a form of national equity.
- The way to earn money is likely quite similar to how organisms reproduce in their environment, highly constrained by the size of available assets.
- Central banks around the world typically target an annual inflation rate of around 2%. In other words, they do not pursue deflation.
- Capitalists and entrepreneurs work without receiving money directly. Workers work to receive money.
Money tends to flow to where it's fundamentally governed by physical laws and limited capital resources. All consumption is ultimately for time and energy - industries concentrate around energy sources like oil or computing, while individual consumption gravitates toward content that occupies significant time. All of these patterns can be understood through this framework.
The ultimate form of currency should approximate the right to consume energy or increase entropy. PoW was a good approach but failed because energy consumption occurred preemptively, and the Petro Dollar System was close but is being threatened by technological developments and various non-oil energy alternatives.
Capital Types
Capital Notion
