1/ IMO Bitcoin HODLers *can* become free riders. Clarifying my thoughts here. If you think my logic is wrong, pls comment! Economics is one of the areas I both love & hate because it’s such a pseudo-science. But it’s still important to think things thru.https://twitter.com/hugohanoi/status/1021131553336786945 …
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4/ As long as GDP keeps increasing, your bitcoins will also increase in purchasing power - since BTC supply is fixed & there're more goods going around. This happens even when you sleep or when you stop working.
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5/ Investing in a currency is unlike investing in a stock because stocks represent productive assets, and any potential rise in stock value can be attributed back to your initial investment. You are not free riding.
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6/ Whereas if you invest in a currency & it gains in purchasing power, that is through the collective effort of society, not your own. Check out this good article from
@BMBernstein that stresses the crucial difference between equity & money:https://twitter.com/BMBernstein/status/1021065633285500929 …Show this thread -
7/ Not all Bitcoin hoarders will be free riders of cos, but many will be. There’s a personal level of contribution that makes you a free rider or not.
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8/ A much simplified example: you own 1% of all BTC supply, and the economy grew by 10%. If you contributed less than 1% of that 10% growth, you are a free rider.
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9/ The more you hoard & the less you contribute back *relative to the amount you hoard*, the more of a free rider you become.
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10/ To clarify: I do think a shift towards saving mentality is a huge improvement over the blind consumption-for-consumptions-sake cycle we have now. But *saving alone* won’t be enough for a prosperous society. And IMO it’s important to be aware of its shortcomings.
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12/ Sliding scale not binaryhttps://twitter.com/hugohanoi/status/1021921656913068032 …
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Does this make any sense at all or am I crazy?
@real_vijay@nic__carter@TuurDemeester@BMBernsteinShow this thread
End of conversation
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Money is not equity, period.
When you park capital in a non-productive asset, it is OUT of the system completely. Decommissioned.
The non-productive asset value can only rise if it piggybacks on the success of productive assets.