Bitcoiners talk a lot about “incentives” and I’ve recently started to gain a better understanding:
On petermccormack (npub14mc…frlx)’s podcast, bquittem (npub1jdw…ujzl) does a great job of explaining that wanting to make everything fair and by removing certain advantages so everyone can get the same outcome, completely changes the incentives of society. It rewards the wrong things and allows mediocrity to compound. Why innovate if there are no incentives?
Whereas free and open markets truly allow merit to rise. The small minority of people who create valuable products and services that change the world need to be shown the incentives in order to innovate.
An easy example of this is taxes: If business taxes are high, entrepreneurs won’t be incentivized to take the necessary risks to bring new products to market.
#Bitcoin helps you understand how market incentives affect human behaviour.
Jeremy Chiang
npub1fg…76lp5
2024-07-23 15:58:45
Author Public Key
npub1fgqtkcyk56g8hrcvnnerff280jjp9x2q6qhkm0tl2mugq07pz6jsu76lp5Published at
2024-07-23 15:58:45Event JSON
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"content": "Bitcoiners talk a lot about “incentives” and I’ve recently started to gain a better understanding:\n\nOn nostr:npub14mcddvsjsflnhgw7vxykz0ndfqj0rq04v7cjq5nnc95ftld0pv3shcfrlx’s podcast, nostr:npub1jdwujjpaxmeyg44fz5xa87yhtrnvg8lzqnv9hprk5sdkx6h58gjqwtujzl does a great job of explaining that wanting to make everything fair and by removing certain advantages so everyone can get the same outcome, completely changes the incentives of society. It rewards the wrong things and allows mediocrity to compound. Why innovate if there are no incentives?\n\nWhereas free and open markets truly allow merit to rise. The small minority of people who create valuable products and services that change the world need to be shown the incentives in order to innovate.\n\nAn easy example of this is taxes: If business taxes are high, entrepreneurs won’t be incentivized to take the necessary risks to bring new products to market.\n\n#Bitcoin helps you understand how market incentives affect human behaviour.",
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