2minutebitcoin on Nostr: Money becomes more useful and more valuable the more people use it. As more people ...
Money becomes more useful and more valuable the more people use it.
As more people begin to hold money, its value and utility both rise. The rational response of everyone else is to try to get more themselves, resulting in a positive upward spiral.
This incentive is at **the polar opposite** of conventional stocks. 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 unique positive feedback between price and value makes the growth of Bitcoin self-sustaining. There is no top until everybody adopts it.
- an excerpt from the 2-minute version of It's Not About The Technology, It's About The Money (2016) https://2minutebitcoin.org/blog/bitcoin-is-about-the-money-not-the-blockchain-technology
As more people begin to hold money, its value and utility both rise. The rational response of everyone else is to try to get more themselves, resulting in a positive upward spiral.
This incentive is at **the polar opposite** of conventional stocks. 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 unique positive feedback between price and value makes the growth of Bitcoin self-sustaining. There is no top until everybody adopts it.
- an excerpt from the 2-minute version of It's Not About The Technology, It's About The Money (2016) https://2minutebitcoin.org/blog/bitcoin-is-about-the-money-not-the-blockchain-technology