# Limited supply crypto assets as inflation black holes.

Updated: Mar 20

**Insula is making market singularity a reality. **

"*Any non-rotating and non-charged mass that is smaller than its Schwarzschild radius forms a black hole. The solution of the Einstein field equations is valid for any mass M, so in principle (according to general relativity theory) a Schwarzschild black hole of any mass could exist if conditions became sufficiently favorable to allow for its formation.*"

Our interpretation is that in economics, any new token or coin that is created, equates to the formation of a new black hole.

We suggest the following model, the Bekenstein-Hawking thermodynamic entropy or black hole entropy, adapted to cryptoasset thermoeconomics. It ties together notions from gravitation, thermodynamics, and information theory, where:

wealth = mass **(invariant)**

inflated wealth = weight inflation = local acceleration of gravity

**Stage 1 of the economy - Event Horizon: **

Bitcoin’s Genesis Block 🧬 (The black hole appears on Earth 🌍 🕳)

**Stage 2 of the economy-Market Singularity point (central point of the black hole): pure competition market,also called an atomistic market.)**

All wealth on Earth,time and space is denominated in various cryptoassets and the market is in its strongest form of efficiency. Meet Schwarzschild vacuum/black hole applied to economics 🌬 .

Source: Gravitational singularity & **#blackholes**.
https://pubs.rsc.org/en/content/articlelanding/2017/me/c7me00026j#!divAbstract
https://en.m.wikipedia.org/wiki/Gravitational_singularity
https://en.m.wikipedia.org/wiki/Schwarzschild_metric
https://arxiv.org/pdf/1810.01847.pdf