Silver Rises Over 120% YTD 
Episode Five: Designing the Perfect Money
About This Episode
In this episode, Alan Hibbard explores what it takes to build a truly perfect form of money — one that preserves value, withstands entropy, and functions fairly for all.
At the heart of this exploration is the idea that no monetary system can optimize for everything. Just like in physics or engineering, trade-offs are inevitable. A system that prioritizes decentralization and security will sacrifice some scalability — and that’s okay.
Alan compares modern financial systems, cryptocurrencies, and gold through this lens, revealing how our current system has stripped away its solid foundation — and why most people today feel financially exhausted.
The path forward? Build your economic life on top of a strong, honest layer one: real money.
Key Question
What are the fundamental trade-offs in monetary design, and why might perfect money be impossible to achieve?
Impossible Trinity
Key Insight:
There are always tradeoffs when designing anything, including monetary assets. When it comes to security, scalability, and decentralization, you can’t have all three.
Practical Takeaway:
If an asset is criticized because it ‘doesn’t scale’ or ‘can’t be used in day-to-day purchases,’ don’t worry! If the asset is highly Secure and Decentralized, then it can likely be held long-term as money.
Currency = Centralized
A good currency will forego Decentralization to achieve maximum Scalability and Security.
Key Insight:
All the fast and secure payment systems that we’re used to, such as credit cards, debit cards, smartphone payment apps, and even physical bank notes, all have central managers.
Practical Takeaway:
If someone’s in charge of it, then you shouldn’t hold it long-term. It’s a currency. This is also true if a group is in charge.
Becoming Decentralized
Key Insight:
Currencies will likely never become monies because the issuing authority is unlikely ever to give up their unique permissions, such as issuance, validation, and governance.
Practical Takeaway:
If a system – such as the Federal Reserve or a modern cryptocurrency – claims to be working towards greater levels of decentralization, don’t believe them. Treat their products as currencies, and don’t hold them for long periods of time.
Layered Solutions
Any good monetary system is built on a solid foundation of honest money, then scaled with currencies.
The most effective monetary systems throughout history have been built on gold and silver, then scaled with metals-backed notes (credit instruments).
Practical Takeaway:
Put yourself, your family, and your business on an honest money standard by owning real money. As necessary, use currencies for short-term purchases and sales.
Why You're Tired
People feel exhausted – financially and otherwise – because they don’t use real money. Their energy dissipates through the currency.
Key Insight:
When energy leaks via inflation, you have to compensate by working harder, getting a second job, or becoming an ‘investor’ to try to reclaim your lost energy. This compounds negatively on your health, family, and leisure.
Practical Takeaway:
Convert your currency into real money. Watch your stress levels decrease, your free time increase, and your overall energy levels soar.
Ready to Take Action?
Apply what you’ve learned and start building your financial future today.
