“Show me the incentive, and I will show you the outcome.”
– Charlie Munger.
Bitcoin is a platform with no CEO, no marketing department, and no customer service.
So, how could the code that was written in 2008 reach a Trillion Dollar market cap by 2020?
Hidden beneath the fray of political and technological discussion…Cryptocurrency at its core is all about incentive design.
The strength of Bitcoin’s incentive design is so strong that it willed itself into existence by sucking in the capital, time, and attention of millions of people around the planet, and it’s not done yet.
I am often in awe of this protocol, not because of the riches, but because of the mechanism that generated the riches.
The elegant, brilliant incentive mechanism has changed us in such a way that millions of people participate in the network of their own volition.
There was no hiring and no coercion.
Users of the network work for Bitcoin. I work for Bitcoin.
I am contributing to its success, by buying its product, discussing it with people, and writing about it.
So why do I do this? I am not told by anyone to do so…
It is my incentive to do so. It is also the incentive of the Bitcoin miners, of the exchanges, of the politicians, of the businesses…
“Humans are the reproductive organs of technology.”
― Kevin Kelly, What Technology Wants
Technology has “wants.”
It has an arc, a direction that it wants to pursue.
Once emergent, it is directionally inevitable (assuming that humanity exists), and humans are the creators that shape and manifest their destiny.
And I often wonder if Bitcoin “wanting” to be adopted is a stronger force than the structural integrity of our current societies’ institutions.
Right as Bitcoin strengthens, institutions are weakening.
Our desires are shifting, like a school of fish changing direction and gleaming in the sun – towards decentralization, cryptography, and a ledger-based technological infrastructure.
At a certain point it gets difficult to ascertain, “Do we work for the protocols, or do the protocols work for us?”
XX I’m David Sherry, I coach early-stage founders, invest in crypto, and write on the overlap of investing, crypto, and the creator economy.
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