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I can create (grow) as many tulips as I want. Can you create as many bitcoins as you want?

by kjksf 2y ago

Terr_ 2y ago
It's a satirical reference to a historical event, where the speculative bubble kept going up... Until it didn't. https://en.wikipedia.org/wiki/Tulip_mania https://en.wikipedia.org/wiki/Tulip_mania
- desumeku 2y ago
  It's important to note that this pretty much never actually happened and is only repeated all the time because of some movie. Source: https://www.smithsonianmag.com/history/there-never-was-real-tulip-fever-180964915/ https://www.smithsonianmag.com/history/there-never-was-real-...
- kjksf 2y ago
  I know that, I've read about tulip mania before. To expand on my previous response: econ 101 teaches us that the price of any non-scarce product will converge to the cost of production plus some small profit margin. Tulip is not a scarce asset because you can make more tulips. If cost to produce a tulip is $1 dollar and the price spikes to $100 due to demand outstripping supply, people will be incentivized to grow more tulips. At some point they'll grow enough tulips for supply to meet the demand and they will have to sell tulips at merely small profit. In fact, some will likely have to sell tulips at a loss due to overproduction. Mona Lisa doesn't have this problem. There's only one Mona Lisa so as long as demand goes up, the price goes up. Bitcoin doesn't have this problem. There's a hard limit of 21 million bitcoins that will ever exist. As long as demand for bitcoin goes up, the price goes up.
  - notahacker 2y ago
    > As long as demand for bitcoin goes up, the price goes up. And as long as the demand for Bitcoin goes down, the price goes down. There's nothing magical about scarcity. The amount of Enron stock certificates issued was finite, but I'm not sure buying them would have been a good idea....
liveoneggs 2y ago
I can create as many liveoneggs-coinz as I want(z). Would you invest in some?
- creaturemachine 2y ago
  Can I be in on the rug-pull?
- desumeku 2y ago
  Sure, you can go launch it on pump.fun right now. But you still can't create any more bitcoins.
- kjksf 2y ago
  No, because you can create as many liveoneggs-coinz as you want. But I do invest in Bitcoin because you can't. Bitcoin is scarce, your coinz aren't. Do you get it now?

I can create (grow) as many tulips as I want. Can you create as many bitcoins as you want?

by kjksf 2y ago

I can create (grow) as many tulips as I want. Can you create as many bitcoins as you want?

It's a satirical reference to a historical event, where the speculative bubble kept going up... Until it didn't. https://en.wikipedia.org/wiki/Tulip_mania https://en.wikipedia.org/wiki/Tulip_mania

desumeku 2y ago
It's important to note that this pretty much never actually happened and is only repeated all the time because of some movie. Source: https://www.smithsonianmag.com/history/there-never-was-real-tulip-fever-180964915/ https://www.smithsonianmag.com/history/there-never-was-real-...
kjksf 2y ago
I know that, I've read about tulip mania before. To expand on my previous response: econ 101 teaches us that the price of any non-scarce product will converge to the cost of production plus some small profit margin. Tulip is not a scarce asset because you can make more tulips. If cost to produce a tulip is $1 dollar and the price spikes to $100 due to demand outstripping supply, people will be incentivized to grow more tulips. At some point they'll grow enough tulips for supply to meet the demand and they will have to sell tulips at merely small profit. In fact, some will likely have to sell tulips at a loss due to overproduction. Mona Lisa doesn't have this problem. There's only one Mona Lisa so as long as demand goes up, the price goes up. Bitcoin doesn't have this problem. There's a hard limit of 21 million bitcoins that will ever exist. As long as demand for bitcoin goes up, the price goes up.
- notahacker 2y ago
  > As long as demand for bitcoin goes up, the price goes up. And as long as the demand for Bitcoin goes down, the price goes down. There's nothing magical about scarcity. The amount of Enron stock certificates issued was finite, but I'm not sure buying them would have been a good idea....

liveoneggs 2y ago

I can create as many liveoneggs-coinz as I want(z). Would you invest in some?

creaturemachine 2y ago
Can I be in on the rug-pull?
desumeku 2y ago
Sure, you can go launch it on pump.fun right now. But you still can't create any more bitcoins.
kjksf 2y ago
No, because you can create as many liveoneggs-coinz as you want. But I do invest in Bitcoin because you can't. Bitcoin is scarce, your coinz aren't. Do you get it now?