Michael Snoyman on Nostr: Most Bitcoin advocates look forward to a world where Bitcoin becomes the dominant ...
Most Bitcoin advocates look forward to a world where Bitcoin becomes the dominant money. The monetization path for an asset requires it first becoming a store of value. Hard moneys beat soft moneys as a good store of value by allowing people to retain their purchasing power over time.
But Bitcoin only works as a store of value if other people treat it as a store of value, aka network effects. In order to get those network effects, you need enough capital to flow into Bitcoin that game theory kicks in, and other people become afraid that they'll miss the boat.
To quote Atlas Shrugged:
> When you accept money in payment for your effort, you do so only on the conviction that you will exchange it for the product of the effort of others... Those pieces of paper, which should have been gold, are a token of honor–your claim upon the energy of the men who produce. Your wallet is your statement of hope that somewhere in the world around you there are men who will not default on that moral principle which is the root of money.
This purpose of money only works if you have good reason to believe that others will value the money in the future. By buying up and holding such a large amount of BTC, Saylor is helping accelerate a world where BTC can be trusted to be redeemable in the future for goods and services.
But Bitcoin only works as a store of value if other people treat it as a store of value, aka network effects. In order to get those network effects, you need enough capital to flow into Bitcoin that game theory kicks in, and other people become afraid that they'll miss the boat.
To quote Atlas Shrugged:
> When you accept money in payment for your effort, you do so only on the conviction that you will exchange it for the product of the effort of others... Those pieces of paper, which should have been gold, are a token of honor–your claim upon the energy of the men who produce. Your wallet is your statement of hope that somewhere in the world around you there are men who will not default on that moral principle which is the root of money.
This purpose of money only works if you have good reason to believe that others will value the money in the future. By buying up and holding such a large amount of BTC, Saylor is helping accelerate a world where BTC can be trusted to be redeemable in the future for goods and services.