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#1267 Lyn Alden | Bitcoin Solves Broken Money

The Pomp Podcast

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The Significance of Energy in the Economy and Currency Value

The economy revolves around increasing energy per capita or using energy more efficiently. The efficiency of energy use in technologies like processors distinguishes the value of different activities in the economy. The significance of energy lies in its inability to be easily manipulated, making it a crucial factor in determining the value of commodities like gold. The process of obtaining a gold coin involves a substantial amount of energy and labor, making it a proof of energy. Similarly, the value of cryptocurrencies like Bitcoin is also rooted in the proof of energy concept, making it hard to falsify the validation of these currencies.

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