Spend vs Use Real Wealth

You cannot "spend" Bitcoin; you can only "use" it.

Let me explain…

To spend or not to spend, that is the question.

But what if this question is based on a false premise? What if you can't "spend" Bitcoin?

What's the difference?

"Spending" implies that the amount of something decreases as you use it:

• Your checking account decreases as you use dollars.

• Groceries disappear as you consume them.

• Car tires erode the more you drive.

Conversely, some things are cumulative, meaning they increase as you use them:

• Knowledge: The more you learn, the more connections you make.

• Trust: Demonstrating integrity over time increases the level of trust others have in you.

• Confidence: Repeated success in your ability can

The value dynamic of "Spending" = Loss or Depletion

The value dynamic of "Using" = Persist or Increase

So our bitcoin clearly decreases as we spend it, right?

Well, not exactly…

Nominally, the number of bitcoins you hold decreases as you exchange them for value. But when you take a look under the hood, something else is happening.

Bitcoin priced in dollars is a reflection of the purchasing power of your bitcoin; it represents how many dollars you can buy with bitcoin.

As you exchange part of your bitcoin stack for value, the purchasing power of your remaining bitcoin is actually increasing. And not by a trivial amount. The increase of purchasing power (price) compared to an increase of new addresses (the people you exchange value with) follows what is called a Power Law.

A power law is a functional relationship between two quantities, where a relative change in one quantity results in a proportional relative change in the other quantity.

Hashrate vs new addresses also increases according to a Power Law. This means the amount of potential energy represented by your bitcoin holdings increases as you exchange your bitcoin!

This behavior is unique to a thermodynamically sound monetary system, such as the Bitcoin network. 

It is utterly counterintuitive because our existing monetary system does not behave like this, but this is what polymath Buckminster Fuller meant when he said you don't "spend" real wealth:

"Every time you do that [exchange value], you create more wealth, you don’t spend it. There's absolutely no spending about it. We keep saying we are spending. We are operating in fantastic ignorance. Every time you use your wealth, if you use it intelligently, it always increases. This is exactly the opposite of our economics, and this is a fact!"

Real wealth is cumulative. 

So, while you can "spend" Fiat currencies like the dollar,

You can't "spend" Bitcoin because the act of using it, in turn, increases your purchasing power.

It's like a martial art designed to harness an opponent's energy and momentum, then redirect it against them. Every time you "spend," it comes right back at you.

This is an example of accretive dilution where your bitcoin is nominally diluted, but your purchasing power is accretive in real terms! The real purchasing power is what matters, not the nominal value. Collectively, it is impossible to "spend" more than we gain back in value.

We have been misled into believing that money = wealth.

Real wealth is more like knowledge, trust, and confidence. The more you use it, the more it increases. 

Yes, you should save in Bitcoin, but you don't need to hold on for dear life.

HODLing your bitcoin doesn't increase its value; exchanging it for true value does!

Counterintuitive? Yes!

But these are the unique properties of a thermodynamically sound finite monetary system.

These are the properties of life!