ECON135: What Is Money?

This is part 2 of Saylor and Breedlove's discussion of Bitcoin's 7 layers of security. The fourth layer focuses on the financial aspect, highlighting how Bitcoin mining's capital intensity attracts large investors. Moving to the fifth layer, they discuss how Bitcoin miners act as an early warning system and drivers of sovereignty. The first five layers, including inertia, antifragility, and capital attraction, work together to fortify Bitcoin's resilience. The sixth layer delves into the spatial dimension, emphasizing how proof of work enables self-distribution and decentralization away from potential attacks. The seventh layer explores the temporal aspect, underscoring the unique spacetime parameters of Bitcoin and its enduring nature. You'll explore the fundamental insight that the stability of Bitcoin is analogous to fundamental constants in physics. You'll also cover the limitations of proof of stake systems, contrasting them with Bitcoin's open, Darwinian design. The discussion concludes by highlighting that Bitcoin serves as both digital money and digital property, encompassing the best of both worlds.

In part 2 of Saylor and Breedlove's exploration of Bitcoin's security layers, students will actively delve into these intricate aspects and grasp how they fortify Bitcoin's resilience and empower decentralization, actively protecting against potential threats.

Prepare to uncover how Bitcoin mining's capital intensity attracts investors and learn about miners as early warning systems, gaining insights into their role in the network. In the final layer, you'll unravel Bitcoin's unique spacetime parameters, drawing parallels to physics. You'll also evaluate proof of stake systems and appreciate how Bitcoin seamlessly embodies digital money and property.