Bitcoin Is Static. . .

The Bitcoin Standard Is Dynamic

More than once I have been asked to distinguish Bitcoin fro the Bitcoin Standard.

The distinction is simple. Bitcoin is static.m

It is secured by the longest chain with proof of work and has a fixed supply. This is the innovation of Bitcoin. This is why Bitcoin and Bitcoin alone is The Standard. This is the feature, uniqueness, and strength of Bitcoin, not a shortcoming or bug.

And it is for this reason The Bitcoin Standard is dynamic.

This parallels the emergence of the gold standard. Gold as a commodity is static. It is secured by its scarcity, mining difficulty, and relatively fixed supply. Gold has the highest stock to flow ratio of all commodities (except bitcoin). Most of the gold mined over the past 6,000 years remains in existence. And new gold coming from production (the flow) is small in comparison to the total gold stock.

This means there is never a shortage of gold. And it means gold never goes into backwardation except for short periods of time in isolated locations.