kevineruby on Nostr: Interesting how Chamath's "primary law of capitalism," in which companies compete out ...

Interesting how Chamath's "primary law of capitalism," in which companies compete out excess return, doesn't apply to money, even if people expect it to do so. When a money succeeds because it's the most accepted and desired store of value, medium of exchange and unit of account, its competitors don't get to eat away at the edges of its success, at least not for the long run. In fact, the opposite is true: it eats its competitors.

Digital currencies are interesting because some of them function like companies and some effectively ARE companies, so people instinctively come think of them in terms of Chamath's law. (I have no idea if he came up with this, but I've heard him talk about it on All-In enough to just call it that.) People confuse buying ETH or SOL instead of BTC as some kind of parallel to AMD or Groq or Apple absorbing some of Nvidia's margins over the long haul, which is likely to happen. But it's not.

What's unlikely to happen is anything outcompeting BTC on the money front. Instead, any pretense ETH had to being money is just getting obliterated by BTC with each passing day, each passing catalyst in either direction price-wise. There's no competition to the point that ETH has a chronic narrative problem, SOL is just acknowledged as gambling on memes and everything else is, well, everything else.