What is Nostr?
2minutebitcoin
npub1p63…ej3v
2023-07-09 22:17:53

2minutebitcoin on Nostr: BITCOIN HAS NO PRICE CAP We say it all the time, but it's literally true. Learn why ...

BITCOIN HAS NO PRICE CAP

We say it all the time, but it's literally true.

Learn why 👇

Most simply said - money becomes more useful and more valuable the more people use it.

i.e. its value AND utility BOTH rise as people start using it.

Money is a different type of asset. 🦊
It doesn't have an "underlying value" like a cash flow of a business.

Conventional investing call this an "unproductive" asset but that's a derogatory term for no reason.

The underlying value of money is how widely accepted it is. That's a fundamental network effect.

The main thing that drives people to adopt it in the first place is its underlying properties - which we know #Bitcoin  excels at.

1. more adoption
2. more useful
3. more valuable (price up)

The rational response of everyone else is to try to get more themselves, resulting in a positive upward spiral -> 2) and 3) make people want to do 1) more, which makes 2) and 3) go up!

This incentive is the polar opposite of conventional investing.

If a stock gets too expensive, its value decreases because an investor buys a smaller share of the company's revenue for more dollars.

Contrastly, $100 of Bitcoin today is MUCH MORE VALUABLE than $100 of Bitcoin years ago because it is spendable at more places.

This makes it both more useful (utility) and safer (downside risk), which unblock further adoption.

What we described here is a unique positive feedback between price and value.

This feedback loop makes the growth of Bitcoin self-sustaining.

There is no top until EVERYBODY adopts it.
Author Public Key
npub1p63d4vekvuql9zltpp4dezzfk2xxfgjsfqyglf4ju4syalekn4csn9ej3v