The debate around pts @naval raised is just about exhausted, but instead of banging my head against the wall I figured I'd chime in.
This article discusses some of the fundamental misconceptions in crypto and the pivotal role investors playhttps://medium.com/@BMBernstein/cryptocurrencies-are-money-not-equity-30ff8d0491bb …
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Replying to @BMBernstein @naval
Hugo Nguyen Retweeted Hugo Nguyen
"Unlike equity, because money is not a productive asset, holding money makes you entirely dependent on the actions of others" Yes! Although precisely because of this reason, IMHO HODLers CAN become free riders in late-stage Bitcoin.
https://twitter.com/hugohanoi/status/1021131553336786945 …Hugo Nguyen added,
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Its not really 'free-riding' though, is it? They take on massive risk and thus get rewarded in the future. > the free-rider problem occurs when those who benefit from resources, public goods, or services do not pay for them HODLers did pay for them, in *past* risk and opp. costs
1 reply 0 retweets 2 likes -
I think it's debatable. They did pay for a portion of it by taking on early risk, but the reward (if Bitcoin hits 10 trillion cap) is not proportional to the earlier risk, IMO.
1 reply 0 retweets 1 like -
Replying to @hugohanoi @realLudvigArt and
Earlier risk is a fixed number, so if the reward is fair, it should not continue forever, and any extra increase in future purchasing power, past the point of hyperbitcoinization, must come from free riding.
4 replies 0 retweets 1 like
Also, there's an interesting comparison with stock ownership. With stock, any rise in the value of the stock is fair reward, because it is the firm you invested in that directly produced that extra value. It's not free riding. Whereas that's not true with a currency.
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