Bitcoin's finite supply is presented as a necessary boundary for a complete logical system, without which measurements become meaningless. This is analogous to physical constants like Planck temperature, which act as boundaries for physical laws, suggesting boundaries are essential for defining reality.
While Bitcoin's code can be copied, its core innovation—verifiable absolute scarcity—cannot be replicated. It was a one-time discovery, like the number zero. Any subsequent digital asset lacks the pristine origin and established network effect, making Bitcoin a unique, non-disruptable phenomenon rather than just another technology.
In physics, the observer is often conflated with the measurer. Bitcoin provides a model where measurement is an objective, internal process—the mining of a block. Observation is the separate, subsequent act of verification by a node. This clarifies a long-standing ambiguity in physics.
Unlike stocks with varying degrees of success, Bitcoin's outcome is binary: it either succeeds in maintaining its fixed supply and becomes global money, or it fails and is worthless. This simplifies due diligence to a finite set of core questions.
The fiat monetary system, which lacks a hard cap, trains people to think within incomplete, unbounded frameworks. This "fiat mindset" makes it difficult to understand and trust a complete, bounded system like Bitcoin, where all rules are defined and finite from the outset.
By converting energy (joules, Boltzmann entropy) into a specific configuration of Satoshis (bits, Shannon entropy) through mining, Bitcoin provides an operational bridge between the physical and information worlds. This resolves the long-standing disconnect between the two forms of entropy.
The mempool, containing all possible but unconfirmed transactions, acts as an analogy for quantum superposition. It represents a pre-measured state of potential. The mining of a block serves as the "measurement" that collapses this potential into a single, deterministic, classical reality.
Gold excels on four of the five properties of money but fails on portability. Bitcoin digitizes and perfects all five: divisibility, durability, recognizability, portability, and scarcity. This makes it a fundamentally superior store of value for the digital age.
Inflationary pressure (P) is a function of money supply (n, molecules), money velocity (T, temperature), and the economy's productive capacity (V, volume). This system is held together by institutional trust (R, the constant). This physics analogy provides a comprehensive framework for diagnosing economic pressures.
The paper posits that Bitcoin blocks represent discrete, indivisible units of time. This provides a real-world, observable model that challenges the long-held assumption in physics that time is a continuous, infinitely divisible parameter, thus solving the double-spend problem logically.
As AI agents become primary drivers of value creation, the ability to command computation will define wealth. Stored energy, convertible into computation, will be the ultimate resource. This makes finite, sovereign digital energy proxies like Bitcoin increasingly relevant as a foundational asset.