Replying to Avatar Chris

The fallacy in your (fiat-based) logic can be most easily seen in the conclusion of your second paragraph above 👆

I was stuck there too until very recently. Map it out again. This time from the perspective of PARABOLICALLY ACCELERATING DEflation.

Visually (and overly simplistically) It looks like a toroidal inversion of the state of flow.

You will know you are “there” when you say out loud….”WHAT THE FUCK?!??”

At least that’s what MY process/reaction was. 😉

Be well brotha 🧡🧬🙏🏻
Avatar
Dr. Bitcoin, MD 8mo ago

I think you misunderstand the math here. Parabolic is very slowly growing compared to exponential as time increases.

Take any graphic calculator or app and plot y=x^2 (a prabola) and y=2^x (an exponential) and you’ll see one grows way way way way faster than the other.

The reality is that all exponential things eventually either go to zero (in the decreasing case) or stop being exponential (in the increasing case). Why? Because exponential growth eventually becomes so large we run out of physical things such wildly large numbers could represent…compared to exponential growth, even the number of atoms in the universe is small…

Reply to this note

Please Login to reply.

Discussion

Avatar
Dr. Bitcoin, MD 8mo ago

I totally agree that bitcoin value will grow a lot faster for a lot longer than most expect. But some fees will eventually be necessary as subsidy will long be insufficient for moving the chain forward before subsidy goes to zero.

And we have proof that people will pay for securing the network. The 2017 block size wars featured an attack on block space and fees went up to a very significant fraction of the subsidy. And ordinals did the same, albeit for less time.

Anyone arguing we need high fees now is missing the value of bitcoin. But arguing transaction fees will never be necessary I think is almost provably false.

Avatar
Kevin's Bacon 8mo ago

Also prices do not all fall to the marginal cost of production, not all the way down. That's not how markets work. That's not how anyone makes choices.

Avatar
Jeff Booth 8mo ago

I think Chris was specifically talking about the misinterpretation of “growth” on a fiat standard versus the productivity growth (faster deflation) ensured by 8 billion people competing to solve problems and provide value to each other on a bitcoin standard.

Growth as measured today is conflated and opposite to the above.

Avatar
Dr. Bitcoin, MD 8mo ago

Indeed. Unleashing humanity on the problems we share through the property rights only a censorship resistant and decentralized money can provide will pay dividends seemingly impossible in our fiat way of thinking.