What does Veblen good mean? I’m curious. I know I can look it up but rather hear from a human vs AI. Thanks
Discussion
Great question.
It’s an economic term for a certain type of product, that breaks the standard supply/demand thesis, ie when price goes up demand decreases, so supply eventually has to reset to the new status quo of lower supply volume than before
With a Veblen good, eg a niche luxury handbag, people’s demand goes up, the more expensive it actually is, ie they specifically want the item because it is the highest price
Bitcoin behaves in a similar way, largely because supply cannot change, so as the price rises, demand will rise as well. A 2 trillion dollar asset class is able to absorb capital from large institutional players in a way that 500 billion asset class cannot
So the big players actually want the Bitcoin market cap to go up. So they can allocate in larger size, with better liquidity
You’re a pedophile
