How many hours of simple labor does 1BTC pay for? I have no clue. Being hyperdeflationary, it could buy 1,000 hours or only 10 minutes–BitCoin is at the mercy of the market’s demand for its value. It’s not backed by any commodity that any “human being” can understand. Since BitCoins are only generated via massive computations, they are indeed quite scarce. The only people “winning them”—and they are indeed gambling with mathematics as they churn SHA256 hashes endlessly—are those willing to dedicate computers and energy to computing them. If you asked someone 6-months ago, how much would a BitCoin buy, you would perhaps hear: not very much. Six months from now in the future, you cannot say if 1BTC is more or less valuable than it was today–because it is not backed by any form of commodity, except perhaps luck and electricity.
How many hours of simple labor does ξ1 pay for? A year ago it was worth an hour, and ten years from now it will still be worth an hour. For this, I know with a certainty, that it is worth one-hour and that value will never change for the life of the universe. I will have no worries that I’ll need to subdivide ξ1 into ridiculous units as ξ0.0000001, equivalent to 0.36 milliseconds, because there “isn’t enough money” to go around. I know that as more people join the economy, everyone fairly receives a larger amount of credit to facilitate trade. I know that as more and more people earn and save ξ, there will be more credit given to the spenders. I know that when everyone has “enough” to live, that there isn’t any more need to create new money. Using ξ is a fundamental human right in my mind. If you squander it, you’ll be given second chances for as long there are people who save.
ξ scarcity comes from the limitation of the “web of trust”—only unique people get access to ξ-credit. You can look at census data and see that if you have a local town with 5,000 people, you cannot have more than 5,000 credit-eligible identities in its economy. Natural disasters (the death or migration of many people) or massive frauds detected in the web of trust will be the two major causes of a credit-retraction in ξ.