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One paradox of money is that the more you distribute it, the less it is worth. When you think about it, this makes sense. If it's easy to come by, it's proport
by amerika_blog 13y ago
One paradox of money is that the more you distribute it, the less it is worth.
When you think about it, this makes sense. If it's easy to come by, it's proportionately "worth less."
- eli_gottlieb 13y agoThe actual distribution is an upside-down parabola, a "frowny shape". Think, for instance, what would happen if one billionaire bought up the entire world supply of Bitcoins for ideological reasons (meaning: he never reaches a point of diminishing marginal utility as the price of BC increases). First, there would be a price bubble as everyone holding bitcoins gets the highest price they can. Then, everyone who had formerly used bitcoin but now sold to the billionaire would migrate to some other crypto-currency, leaving the billionaire eventually holding utterly worthless cryptographic certificates accepted by nobody at all.
- dllthomas 13y agoI see that it's lower at the ends than in the middle. I don't see that a parabola is a good fit - especially not from your example, where my intuition says it'd look more like a bubble bursting than a smooth rise and fall.