When will he jump on board? At the latest since Microstrategy boss Michael Saylor enriched his company by around 70,000 Bitcoin (BTC), the scene has been hoping for an even more prominent rocket scientist to jump on the Bitcoin bandwagon: Elon Musk. As a tech entrepreneur, the now richest person on earth would be virtually predestined to participate in the Bitcoin Millionaire market from the community’s point of view.
It is true that Musk had repeatedly commented on BTC in the past. However, the entrepreneur did not make any clear statements on whether Musk sympathizes with the digital gold or not. Now Musk’s BTC journey is going into the next round.
That the community would pounce with fervor on the billionaire’s every move regarding Bitcoin is not surprising. Interestingly, the Tesla founder let it slip that he does have an opinion on BTC and co.
The thing we call money is just an information system for labor allocation.
What actually matters is making goods & providing services.
Whichever has least error & latency will win.
– Elon Musk (@elonmusk) January 15, 2021
What we call money is just an information system for labor distribution. What really matters is the production of goods and the provision of services. We should look at currencies from an information-theoretic point of view. Whatever has the least error and the least latency will win.
One thing is clear: as soon as Musk lets it slip that he is on Team Bitcoin, it will have a huge impact on the price. After all, the SpaceX founder is considered forward-thinking and has also founded PayPal, one of the most successful payment service providers ever.
Hyperbitcoinization: bitcoin’s endless journey
„Mankind’s greatest shortcoming is our inability to understand exponential functions,“ physicist Albert Allen Bartlet had once said. And he should know. After all, the scientist was primarily concerned with growth functions.
What does Bitcoin’s acceptance curve look like? As an exponential technology, it is often compared with the development of other technologies such as the Internet or the spread of telephones. Accordingly, disruptive technology usually grows in an S-shape. That is, initially growth is flat and only early adopters see the potential.
At some point, however, the incentives become too great and mankind jumps on the bandwagon almost simultaneously. This scenario is what Knut Svanholm, author of a number of Bitcoin books, and podcaster Guy Swan describe as „hyperbitcoinization.“
But while Bitcoin’s technology is expected to grow like an S-curve, Svanholm and Swan see Bitcoin’s price undergoing an exponential curve. In other words, hyperbitcoinization will flatten adoption curves, but the price will continue to rise. Accordingly, the ultra-bullish assumption of the two Bitcoiners is that BTC divides the value of all goods by the finite number of available BTC.
We measure the value of goods and services by a universal good. This good becomes, by definition, money. Hyperbitcoinization therefore has no end point. It is a continuous process.