How Bitcoin Supports a Greener Future with Margot Paez

This week we had the pleasure of speaking with Margot Paez, who is part of the Bitcoin Policy Institute and is a PhD candidate working on Climate Change modelling.

Margot speaks and writes extensively on the relationship between bitcoin, money and environmental sustainability.

A little written synopsis of this episode:

Our current global economic system contributes towards climate change and long-term environmental resource depletion due to the impacts of the over-distribution of fiat money (government-issued) which incentivises businesses to grow far beyond their means and fuel unsustainably high production/consumption demands, as well as to embed a lower time preference of money - i.e as our money depreciates over time it makes little sense to hold it in a bank and so populations are incentivised to spend it.

This overspending on the present not only leads to debt and future uncertainty but it directly contributes to the purchase of quantity over quality, and the push to make purchases now - greater fuelling the unsustainable production/consumption cycle. What is need is structural and financial change. Bitcoin provides a way out of this unsustainable system, by having a built-in supply limit of 21 million bitcoin (released over time), the scarcity of it as a money contributes to it's value rising over time and in response creating a higher time preference around it (i.e people won't want to spend it arbitrarily as money itself will be intrinsically valuable - in similar ways to gold, if gold supply was limited).

In this conversation Margot Paez argues this perspective and alleges that moving to global bitcoin adoption will support environmental sustainability and create a better world for future generations, although she does take account of the immediate difficulty around the uncertainty of the bitcoin price as it is still in price discovery and is used as a tradable high risk asset by financial institutions and investors and so continues to fluctuate significantly.

To follow her work visit: https://www.margotbits.com/aboutmbits

Follow her on twitter: https://twitter.com/margotilian

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