* I am likely wrong about economists mislabeling velocity --- they are using it correctly as a transaction rate, as I specified.

As a long-time listener of @TomBilyeu and , I have a gentle criticism of how the fiat money and debt crisis is being explained. The explanation must be wrong, although the sentiment is directionally correct. As a side-topic, my realization has also allowed me to gain an appreciation for @EricRWeinstein's application of gauge theory to economics, which maybe would also align to how Jim Simons successfully applied math and science expertise to investing. Tom and Guy both have explained how the money supply necessarily must inflate to enable debts to be paid, because the interest cannot be covered without creating money. That is, if the total money supply is $100, and you lend it all to Alice at 10% interest, Alice cannot pay back the loan with interest without printing an additional $10. On the surface, this seems correct, but it cannot be. In Guy's episode "Chat_144" [open.spotify.com/episode/1HFORy…], the topic of using Bitcoin for collateralized loans is discussed. BTC is the perfect money, its supply being mathematically impossible to inflate. If the debt yields interest, the prior explanation making inflation necessary completely contradicts how interest-bearing loans of BTC could work. The contradiction is resolved by fixing the prior explanation. Money supply inflation is NOT necessary to pay back the loan with interest, because of velocity. The borrower spends the $100 on goods to build his business. That money flows out to others. The borrower's business earns money back through sales by his growing business. That $100 of total money supply has exchanged hands a great many hands in numerous transactions throughout the economy. Presumably Alice's business has earned revenue and profits, and it is from this inflow of money, which can grow on the ledger to many times larger than the money supply, that $110 can be paid back to the lender. However, the $100 money supply does limit the liquidity available to transactions being settled. The $110 repayment cannot happen in a single translation. There needs to be enough velocity to allow that money to circulate through the many hands, so that Alice can repay portions at a time until the full amount owed is repaid. We can see from these dynamics that the economy has mass (money supply), velocity (rate of transactions), momentum (amount of money * transaction rate, which economists mislabel as 'velocity' of money). We also have conservation laws, such as the obvious money spent must equal money received per transaction; the total money supply remains constant absent the creation of new money. This is exactly the physics of this model of the universe. From this insight, we can easily take the leap that this universe can be modeled as a gauge theory.

What do people want to be built on Nostr that doesn't exist yet?

Canada bans cash payments over $10,000. This seems like Bitcoin's time to shine.