• Money and energy are two of the most fundamental aspects of an economy because they are universal.
• Governments have meddled with the energy sector since 1789, long before fiat currency was established.
• Despite Bitcoin improving the relationship between energy and money, governments will still likely have some control over the energy sector and continue to employ second-layer fiat money.

The relationship between money and energy is a complex one, with both being fundamental aspects of our economy. Money is necessary for storing wealth, calculating revenue and losses, and trading for goods and services that can’t be acquired through barter. Energy is also essential for transforming raw materials into consumer goods and services. Bitcoin has drastically improved humanity’s relationship with both money and energy, but the problems that plague both are likely to survive a Bitcoin standard, albeit in a lesser form.

The United States government has been trying to centrally plan the energy sector since 1789. This was two years before delegates at the Constitutional Convention included the “gold and silver clause” in the U.S. Constitution, which made its way into Article One and states that individual states will not be allowed to create their own currency. In extensive research on the topic of the U.S. government’s history of subsidizing the energy sector, DBL Investors managing partner Nancy Pfund and economics graduate student Ben Healey made sobering discoveries. Although not a direct subsidy, the U.S. government raised a tariff on the sale of British coal in 1789 to benefit the American coal industry.

Government interference in the energy sector continues to this day, with many governments implementing regulations, subsidies, and bans to influence the sector. While Bitcoin has the potential to disrupt this type of interference, governments will still likely have some control over the energy sector. Money is also likely to remain under the influence of governments. Despite Bitcoin’s potential to decentralize money, governments will continue to employ second-layer fiat money that citizens are forced to use.

The emergence of Bitcoin has improved the relationship between energy and money, but it has not eradicated the problems associated with both. Governments will still likely have some control over the energy sector, and second-layer fiat money is likely to stay in circulation. While Bitcoin has the potential to reduce the severity of these problems, it is unlikely to completely eliminate them.