2minutebitcoin on Nostr: The value of money is a macroeconomic phenomenon, even for a tiny, quirky ...
The value of money is a macroeconomic phenomenon, even for a tiny, quirky cryptocurrency like Bitcoin.
Bitcoin can be worthless one year and valuable the next without a fundamental change to the software or protocol. It can and does range in price by enormous margins over short periods of time for reasons that seem inscrutable.
The reason for this is that the value of money is a shared hallucination, and the price is caused by the vividness of that hallucination. It is all based on future expectations of utility.
-- an excerpt from It's Not About The Technology, It's About The Money (2016), its 2-minute version can be found here: https://2minutebitcoin.org/blog/bitcoin-is-about-the-money-not-the-blockchain-technology
Bitcoin can be worthless one year and valuable the next without a fundamental change to the software or protocol. It can and does range in price by enormous margins over short periods of time for reasons that seem inscrutable.
The reason for this is that the value of money is a shared hallucination, and the price is caused by the vividness of that hallucination. It is all based on future expectations of utility.
-- an excerpt from It's Not About The Technology, It's About The Money (2016), its 2-minute version can be found here: https://2minutebitcoin.org/blog/bitcoin-is-about-the-money-not-the-blockchain-technology