Stuart Bowman on Nostr: > In economics, the Jevons paradox occurs when technological progress increases the ...
> In economics, the Jevons paradox occurs when technological progress increases the efficiency with which a resource is used (reducing the amount necessary for any one use), but the falling cost of use induces increases in demand enough that resource use is increased, rather than reduced.
Jevon's paradox is interesting, I had never heard of that before. But if I understand correctly, it only applies to consumable resources right?
The reason I'm saying the price of btc would stay the same is because the supply would stay the same (i.e. it cannot be consumed, nor can it be produced faster due to the difficulty adjustment)
Yes the *purchasing power* of btc would massively increase (due to the falling price of every other non-difficultly-adjusted commodity) but the price would stay the same (ok well it might actually increase in nominal terms because people have more disposable income due to their real expenses being reduced)
Jevon's paradox is interesting, I had never heard of that before. But if I understand correctly, it only applies to consumable resources right?
The reason I'm saying the price of btc would stay the same is because the supply would stay the same (i.e. it cannot be consumed, nor can it be produced faster due to the difficulty adjustment)
Yes the *purchasing power* of btc would massively increase (due to the falling price of every other non-difficultly-adjusted commodity) but the price would stay the same (ok well it might actually increase in nominal terms because people have more disposable income due to their real expenses being reduced)