Thread by @HigherManas

1/10 John Searle in his seminal work The Construction of Social Reality posited the idea that there was no objectionable reality within human social constructs but only institutional reality, such as money as a human institution. Money has value, or is an institutional construct,

2/10 because we all collectively agree that it does, and is. The institutional construct of money has always changed. Narratives that move mass institutional awareness are often weaved years and decades in advance of institutional acceptance. This is an organic process which

3/10 seldom requires direct human orchestration, though such orchestration can exist. Under the umbrella of money, there are competing value propositions that feed the higher construct. But there is always a dominant value proposition that serves the overarching institutional

4/10 construct. This dominant value proposition today is fiat currency, and in particular, the dollar. To be sure, the acceptance of the institutional construct is built on mass confidence in that value proposition. Gold has not been the dominant value proposition for a long time

5/10 now and there is nothing within the institutional construct that would suggest it would become such once again. For gold to skyrocket and become dominant would mean a collapse in confidence of the institutional fiat construct itself. Being that digital CBDCs will be fiat

6/10 based, it is more likely than not that the dominant value proposition is in the process of shifting towards non-fiat constructed digital assets with support from the human institution of government. Bitcoin, though currently serving as a pressure relief value for fiat

7/10 inflation, a role once provided by gold, is also unlikely to become the dominant value proposition. It will be digital ledgers and whole ecosystems themselves which will become the dominant value proposition built within the architecture of the new digital money construct.

8/10 This narrative is now developing within a new institutional reality of money. A potential collapse of Bitcoin could in fact be the catalyst that both validates and expands the acceptance of the new digital construct built on a plurality of digital ledgers and interoperable

9/10 ecosystems. Therefore, it will not be the institutional destruction of fiat that will herald in the age of digital money, but the destruction of Bitcoin itself, the first digital money construct, which has planted the seed of acceptance for the new money construct.

10/10 Our construction of social and institutional reality is always at work and the most pervasive of narratives have often historically folded to an overarching improvement and advancement within the total construct which seemed to come out of nowhere.