Jake Woodhouse
1w ago
“Bitcoin is growing by a power law trend. Now, a power law is a very unique characteristic that is not typical of a financial asset — it's more typical of, for example, the growth rate of a city. The growth rate of a city like New York or Tokyo follows a power law. Now, why would this happen to a financial asset? Well, because it's not only a commodity, it's also a social network. When you start to understand that, you start to understand why or how Bitcoin can also be growing not only as a financial asset like gold, but also as a social network like Facebook. That gives one confidence. If you have Ethereum or XRP — it doesn’t have that.
We could put our algorithm on Ethereum and it would do like 4–5x what Bitcoin would do — but not safely. It wouldn't survive all the stress testing that we would do. The ironic thing about Bitcoin is that it almost has predictable growth. If you take away the boom and bust cycles, it is actually growing at a very steady rate. It's scale invariant. In other words, at every scale, it's increasing.
But it's also diminishing returns, which we believe is one of its strengths. This is also a contrarian idea. People think that the adoption is going to take off and it's going to explode, whereas our position is that the explosive growth has already happened. What's going to happen now is we're going to have diminishing bubbles, diminishing returns — but a steady rate of growth, potentially forever, as long as it exists in a fiat system.”
Kostas Ozuas / Ep.35 / 35:05
We could put our algorithm on Ethereum and it would do like 4–5x what Bitcoin would do — but not safely. It wouldn't survive all the stress testing that we would do. The ironic thing about Bitcoin is that it almost has predictable growth. If you take away the boom and bust cycles, it is actually growing at a very steady rate. It's scale invariant. In other words, at every scale, it's increasing.
But it's also diminishing returns, which we believe is one of its strengths. This is also a contrarian idea. People think that the adoption is going to take off and it's going to explode, whereas our position is that the explosive growth has already happened. What's going to happen now is we're going to have diminishing bubbles, diminishing returns — but a steady rate of growth, potentially forever, as long as it exists in a fiat system.”
Kostas Ozuas / Ep.35 / 35:05
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LeviWritesBooks
@LeviWritesBooks
♥︎ by author
1w ago
Bitcoin is an index of all humans action and innovation, so absent the fiat system, the value of the network will appreciate at the speed of innovation and invention which, since the free market has never genuinely existed before Bitcoin, will be more aggressive than people now think. Humanity has never experienced the freedom in life, culture, and clarity from the granular to the universal that is coming for it because of our shift towards perfect information, towards an intimate relationship with reality.
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Jake Woodhouse
@jakewoodhouse
1w ago
This is a great debate. Diminishing returns or not
I generally lean towards the idea that one day we wake up and it’s double / triple / quadruple overnight
But Kosta makes a good case of diminishing
Time will tell!
I generally lean towards the idea that one day we wake up and it’s double / triple / quadruple overnight
But Kosta makes a good case of diminishing
Time will tell!
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LeviWritesBooks
@LeviWritesBooks
♥︎ by author
1w ago
Thanks for the generous zap Jake! When you have me on your podcast, we can settle all the mysteries of mankind. ;-)
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LeviWritesBooks
@LeviWritesBooks
♥︎ by author
1w ago
Time will tell. So will first principles.
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