HTG_HODL on Nostr: Buckle up. Things are about to get wild. One thing I rarely see discussed about the ...
Buckle up. Things are about to get wild.
One thing I rarely see discussed about the game theory of #Bitcoin is that the incentives are aligned in such a way that the game speeds up over time.
During the initial phases of the game, #Bitcoin was a strange foreign idea in cyberspace. It was risky, it was uncertain, it was hard to buy, and hard to store. Only the outcasts, the explorers, and the free thinkers joined during the early wave, and they were handsomely rewarded for doing so.
Now, the talk I frequently hear is that the best gains are behind us. What's the point? I missed Bitcoin. I should have bought it when it was cheap. Etc...
While it is true that the biggest percentage gains are behind us, the biggest and fastest adoption is just around the corner. Also, even if you have dismissed #Bitcoin, the cost of ignoring it will soon become unbearable.
The game theory will soon switch from greed to fear, and for the first time ever, fear will drive #Bitcoin higher and higher instead of lower and lower.
Why is that?
The bitcoin network grows stronger and becomes more valuable with every person that joins.
At the same time, the fiat monetary system becomes weaker with every person that leaves.
While adoption was still tiny, the cost of ignoring Bitcoin was negligible. You missed out on the gains, but otherwise, it was not important. Soon, however, that will no longer be the case. Everyone knows that fiat money is being debased at an accelerating pace. With every person that exits into Bitcoin, it means that those left with fiat will now have to carry the burden of those that have left. In other words, the cost of staying with fiat will exponentially increase over time.
Think about it. Does the national debt decrease if people leave the US? No. The same is true with monetary networks. Unfortunately for those holding fiat, it is a debt-based system, and the people opting out with #Bitcoin no longer have to care or worry about that debt.
This is why the best money always wins, and why there can only be one winner. I also believe that's why the fastest growth in Bitcoin adoption is just ahead of us. It will go from a trickle, to a rush, and end in a stampede.
At some point, you won't be able to exchange fiat for #Bitcoin at any price, and all of your models will be destroyed.
⚡️⚡️⚡️
-FiatHawk
#Bitcoinfessions
One thing I rarely see discussed about the game theory of #Bitcoin is that the incentives are aligned in such a way that the game speeds up over time.
During the initial phases of the game, #Bitcoin was a strange foreign idea in cyberspace. It was risky, it was uncertain, it was hard to buy, and hard to store. Only the outcasts, the explorers, and the free thinkers joined during the early wave, and they were handsomely rewarded for doing so.
Now, the talk I frequently hear is that the best gains are behind us. What's the point? I missed Bitcoin. I should have bought it when it was cheap. Etc...
While it is true that the biggest percentage gains are behind us, the biggest and fastest adoption is just around the corner. Also, even if you have dismissed #Bitcoin, the cost of ignoring it will soon become unbearable.
The game theory will soon switch from greed to fear, and for the first time ever, fear will drive #Bitcoin higher and higher instead of lower and lower.
Why is that?
The bitcoin network grows stronger and becomes more valuable with every person that joins.
At the same time, the fiat monetary system becomes weaker with every person that leaves.
While adoption was still tiny, the cost of ignoring Bitcoin was negligible. You missed out on the gains, but otherwise, it was not important. Soon, however, that will no longer be the case. Everyone knows that fiat money is being debased at an accelerating pace. With every person that exits into Bitcoin, it means that those left with fiat will now have to carry the burden of those that have left. In other words, the cost of staying with fiat will exponentially increase over time.
Think about it. Does the national debt decrease if people leave the US? No. The same is true with monetary networks. Unfortunately for those holding fiat, it is a debt-based system, and the people opting out with #Bitcoin no longer have to care or worry about that debt.
This is why the best money always wins, and why there can only be one winner. I also believe that's why the fastest growth in Bitcoin adoption is just ahead of us. It will go from a trickle, to a rush, and end in a stampede.
At some point, you won't be able to exchange fiat for #Bitcoin at any price, and all of your models will be destroyed.
⚡️⚡️⚡️
-FiatHawk
#Bitcoinfessions