NunyaBidness (npub1vwy…zugd)
You've mentioned on the last couple of podcasts that Bitcoin's price is unknown because only a fraction of the available supply is being traded (hodl-ers have the rest). But it's a function of economics that price is set at the margins.
Imagine owning 3 bags of wheat. The first bag you set aside for it's highest use (for you): making bread for your family. The second is set aside for it's second highest use: feeding your chicken. The third, since you have it, you'll use to throw on your garden and mulch over to feed the worms. Since that last (marginal) bag is the first you'd get rid of (actually, the use of the third bag--which physical bag is irrelevant), the price you'd accept to get rid of it is the value you place on feeding the worms. That's the price.
If Bitcoin jumped to $1M in the morning, there'd be a lot fewer hodlers.
Russet Pilled / Just another Discordant Tom
npub1kv…wf6a7
2023-12-14 03:41:49
Author Public Key
npub1kv4dpsdlr609s6tg3tcee2lhaknglsg0crnwku9ed450g4anazas2wf6a7Published at
2023-12-14 03:41:49Event JSON
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"content": "nostr:npub1vwymuey3u7mf860ndrkw3r7dz30s0srg6tqmhtjzg7umtm6rn5eq2qzugd \n\nYou've mentioned on the last couple of podcasts that Bitcoin's price is unknown because only a fraction of the available supply is being traded (hodl-ers have the rest). But it's a function of economics that price is set at the margins.\n\nImagine owning 3 bags of wheat. The first bag you set aside for it's highest use (for you): making bread for your family. The second is set aside for it's second highest use: feeding your chicken. The third, since you have it, you'll use to throw on your garden and mulch over to feed the worms. Since that last (marginal) bag is the first you'd get rid of (actually, the use of the third bag--which physical bag is irrelevant), the price you'd accept to get rid of it is the value you place on feeding the worms. That's the price.\n\nIf Bitcoin jumped to $1M in the morning, there'd be a lot fewer hodlers.",
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