“Fiat money is the term for a medium of exchange which is neither a commercial commodity, a consumer, or a producer good, nor title to any such commodity: i.e., irredeemable paper money.”
“‘Break stuff’ in that context means ‘Kill People.’ The software simply must work every time, no compromise, no guesswork, no exceptions. There are no ‘do overs’ or roll-backs.”
The brilliance of the price system is in coordinating the values, deeply limited knowledge and scarce resources precisely to their highest value need without having to understand or be aware of every single change in supply, alternatives, and uses of those resources among the economic participants. It is specifically because we only receive the most important piece of information, its new value in relation to other things (the price), that we can so quickly align ourselves with the new state of the world…
Is Bitcoin’s security going to be unreliable, volatile, or could it even fail entirely when we lose the block subsidy? Or is Bitcoin set to operate smoothly with a natural transition from newly minted bitcoin, to transaction fees?