The current value of the French « SMIC » (minimum wage to be paid per hour) if we link it to time is: One hour = 0.00125 Bitcoin!
The value of time related to Bitcoin: 10/05/2018
The world’s economy is tied to time. We all work to create value. It must be understood that since the invention of money, we no longer exchange one « good » directly against another (barter). It seems that everything is being played today on the unconscious and intrinsic value we give to money. Indeed, in the « reality » we exchange our time for goods or services.
The problem today is that money (like the Euro, the Dollar and the Yen) can be produced in an unlimited way and in record time. While the Time is not multiplying. Bitcoin is a limited currency.
The human time available for value creation:
This time varies according to the number of humans on earth. Let’s take a current base of 7.5 billion humans. And a maximum time of 365 days consisting of 24 hours.
Available time per year: 7 500 000 000 X 365 X 24 = 65 700 Billion hours available per year.
We sleep 8 hours a day on average.
We can create value (work) 8 hours a day on average (working 7 days / 7).
The last 8 hours are used to do something else.
Thus in one year we can value: 7 500 000 000 X 365 X 8 = 21 900 Billion hours.
If we take the French model: one hour to the « smic » value: 10 euros approximately.
Thus, if the whole World was at the French « smic » we would have a monetary creation of 219 000 Billion Euros per year.
What does it Mean:
A more stable « currency » is needed to make time worthwhile. See even trading the time « valued » itself for time « valued » (barter time).
Let’s bring back the calculation to Human size:
If we take a person who works (values his time) 40 hours a week.
It can value 40 hours X 52 weeks per year = 2080 Hours.
If this person works 40 years it has a potential of 40 * 2080 = 83 200 hours.
Thus remunerated to the smic a person can if it works 40 years to value his time:
83 200 hours X 10 euros per hour = 832 000 Euros.
The real problem:
The value of time backed by the euro is not stable. With 10 euros you buy about 10 baguettes today (in 2018). But in 20 years (2038) it is possible that the euros that we will have aside savings are not worth as much. Maybe we will pay 20 euros for our 10 chopsticks.
What I mean here is that our time will have lost so much value. It will take twice as much of our time for the same product (the baguette). The value of time must not be tied to a « floating » currency that can be produced in an unlimited way.
Bitcoin is a limited currency.
The Bitcoin protocol creates a Bitcoin creation that has a Bitcoin number end in circulation (a maximum of 21 million Bitcoin).
What few people understand at the moment is that a bitcoin can be subdivided into 100 million « Satoshi » it’s a bit like the idea of »cents » for the euro.
So a Satoshi = 0.00000001 bitcoin.
What makes there in circulation 21 million bitcoin X 100 million Satoshi =
21 000 000 X 100 000 000 = 2 100 000 000 000 000 Satoshi
If we divide this incomprehensible figure by the number of hours we can value per year:
2 100 000 000 000 Satoshi / 21 900 000 000 000 hours = 95 Satoshi per hour
If we divide the total number of Satoshi by the population of the World in 2018:
2 100 000 000 000 Satoshi / 7 500 000 000 = 280 000 Satoshi per person.
Knowing that we work on average 83 200 hours in a lifetime of work (40 years)
We can earn 280 000 / 83 200 = 3.36 Satoshi per hour.
In reality, the active population is less than the total number of humans on earth.
We can estimate at 10 Satoshi per hour.
One day it is possible that 10 Satoshi are worth one hour of work of a human. And 6 minutes 1 Satoshi. Which today represents 1 « baguette ».
It is probably necessary to think about the value of our converted time in a « stable currency ». And eventually trade the valued time itself.