2 sats \ 2 replies \ @kr 21 Nov 2021 \ on: Speculative Attack bitcoin
This is playing out exactly as Pierre described...
"Bitcoin's historical return is ~500% per year. Even if investors expected future return is 1/10th of that, the central bank would have to increase interest rates to unconscionable levels to break the [speculative] attack.
The result is evident: everyone would flee the Rupee and adopt bitcoins, due to economic duress rather than technological enlightenment. This example is purely illustrative, it could happen in a small country at first, or it could happen simultaneously around the world.
Who leverages their balance sheet and how is impossible to predict, and it will be impossible to stop when the dam cracks."
The foresight of folks like Pierre has really highlighted for me how predictive incentives are - particularly ones with large payoffs.
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when network effect kicks in, incentives carry it all the way. the real force of network effect is not something you can see with your eyes or feel with your hands.
irc, kazaa, emule, napster, bittorrent, tor, bitcoin, lightning, SN...
every time i used one of those programs for the first time i had a feeling i cannot describe. some people i know cannot get that feeling somehow.
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