IOTA as Digital Infrastructure: Applying PlanB’s ‘Phase Transitions’ to the IOTA Token
The full article was originally published by Dan Simerman on Medium. Read the full article here.
With the expanded narrative of Bitcoin as a ‘financial instrument’ gaining popularity in 2021, it makes sense to review how the IOTA Token’s utility is growing due to technical updates and macro economic forces. In this blog post, I apply PlanB’s idea of ‘Phase Transitions’ and lay out a potential evolution of the IOTA Token as a foundational resource for digital infrastructure in the global machine economy.
Many people have been captivated by PlanB’s S2F model, not only for its timely predictions but also its clear assessment of the narratives affixed to Bitcoin over the years. In PlanB’s terminology, these narratives are called ‘Phase Transitions’, using the classic example of the different states that water can take:
During phase transitions, things get totally different properties….The classic example of phase transitions is water. Water exists in four different phases (states): solid, liquid, gas, ionized. It is all water, but water has totally different properties in each phase.
Later in the article, he makes the case that the US dollar has also seen multiple phase transitions:
For example the US Dollar has transitioned from gold coin (One dollar = 371.25 grains of pure silver = 24 grains of gold), to paper backed by gold (“In gold coin payable to the bearer on demand”), to paper backed by “nothing” (“This note is legal tender for all debts, public and private”).
And that Bitcoin is following its own unique trajectory as people question its place in society: