21 sats \ 4 replies \ @Undisciplined 25 May \ parent \ on: The Paradox of Bitcoin Adoption bitcoin
I guess we'll see, but I don't think that's entirely right.
Yes, fiat won't depart peacefully.
However, every new use case creates a new dimension for adoption to proceed along (extensive margin) and each use case continues attracting people (intensive margin).
There's a positive feedback cycle, since network effects apply here, so new adoption makes bitcoin attractive to even more people, which encourages yet more use cases.
I expect that there will eventually be mad dashes out of fiat as each currency collapses.
I understand the adoption process you describe, but remember that the catch here is that bitcoin also haves a negative feedback that surpasses the positive feedback when it tries to rise above sustainable margins for the masses. It's not lineal feedback but elliptic feedback, hence the paradox.
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Slow process
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Try to materially imagine the actual point of transition. Remember that fiat forces are at play at all times at whim, where the second part of my argument applies. Slow process can make for marginal adoption, but not full adoption.
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Yep, until it isn’t.
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