Bitcoin is not zero-sum: let's craft a more hopeful narrative \ stacker news ~bitcoin

Bitcoin is not zero-sum: let's craft a more hopeful narrative

4164 sats \ 10 comments \ @josh 13 Jan bitcoin

Alice owns a house, and Bob owns bitcoin. After learning more about the asset, Alice's willingness to pay for bitcoin increases by 2x. Is Alice poorer than she was before?

I think we'd all agree that the answer is no. Purchasing power is not a zero-sum game. If Alice and Bob agree that the purchasing power of 1 BTC is greater than it was yesterday, neither is worse off for it. Alice values Bob's bitcoin more, and Bob can more easily purchase Alice's house.

I find that too frequently, people take the perspective that bitcoin can only succeed at the destruction of value elsewhere in the economy (fiat, real estate, stocks, gold, etc.). I think this is wrong, and I think such language turns off a lot of everyday people. Bitcoin can succeed without the existing financial system falling apart, and I find that people are more receptive to bitcoin when described as a source of hope and optimism, rather than solely in terms of protection against calamity and despair.

Let's craft a more hopeful narrative. Bitcoin does not need to be treated as a zero-sum game.

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264 sats \ 0 replies \ @PlebeiusG 14 Jan

Yeah. Nice idea!

But is it realistic to see endlessly-printed fiat survive 100 years at this point?

My understanding is that this is a Schelling point where inferior methods of currency LOSE instead of co-existing.

I guess we will see.

10 sats \ 0 replies \ @kepford 14 Jan

I not sure where the zero sum game idea is coming from. That's not how I view the world or bitcoin. Frankly that sounds like ignorance.

I think you might be describing a view I hold. The current economic system is fake and destined for failure. Bitcoin is hope for us.

41 sats \ 0 replies \ @cryotosensei 14 Jan

I think when more circular economies the likes of Lugano in Switzerland and Borclay in the Philippines get established and thrive, people will understand how Bitcoin is a standalone currency that works and doesn’t need other financial assets to legitimatise its existence

43 sats \ 0 replies \ @TNStacker 14 Jan

Better technology is never zero-sum and effects are often exponential.

Hopeful narative; I don't know. When the fiat game is up, asset value adjustments will be pervasive and violent at times in some places. Eventually, I fear the U. S. lower half will feel it pretty hard.

21 sats \ 0 replies \ @harrr 14 Jan

Bitcoin can succeed without the existing financial system falling apart

Bitcoin will save the financial system which will have to reinvent itself on a bitcoin standard.

0 sats \ 0 replies \ @riberet19 14 Jan

I believe that Bitcoin is the future of finance and the economy, looking at the economic panorama we have today, what else could it be? I think CBDCs will be an absolute failure in the medium or long term, only Bitcoin can save us.

0 sats \ 1 reply \ @SpaceHodler 14 Jan

I'm not sure I understand your point.

If Alice wants bitcoin more, she wants other things less. The monetary premium moves to bitcoin from other things.

0 sats \ 0 replies \ @SpaceHodler 14 Jan

Still, this doesn't mean it's a zero-sum game. It can have great net benefits, by sanitizing economic calculation, lowering our time preference etc. But your example doesn't go into that.

0 sats \ 0 replies \ @CruncherDefi 14 Jan

Well ser, you are wrong. Monetary_premium / store_of_value aspect of money IS zero sum. Ever heard Saylor/others saying "Bitcoin will demonetize other assets", or "Bitcoin will eat the world"? Those refer to this zero sum aspect of monetary premiums.

I find that too frequently, people take the perspective that bitcoin can only succeed at the destruction of value elsewhere in the economy

Okay, perhaps this is where the confusion lie. Bitcoin doesn't destroy "value". If we switch to Bitcoin Standard overnight there is the same amount of cars/houses/stuff in economy. Bitcoin absorbs value from other stores-of-value. The zero-sum aspect only refers to monetary premiums.

If Alice and Bob agree that the purchasing power of 1 BTC is greater than it was yesterday

Bitcoin is pure money. It doesn't have industrial uses (like gold). Value of bitcoin is 100% monetary premium. And as such if Alice is rational actor she doesn't 'decide' to value bitcoin at 2x next day. Her 'decision' is driven by opportunity cost of 'what can I get in other places for 1 BTC', and that is driven by the whole economy.

0 sats \ 0 replies \ @fred 14 Jan

From the Alice and Bob analogy, BTC shouldn't be valued to fiat per the issue with purchasing power, 1 BTC should always be 1 BTC