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@ Jake Woodhouse
2025-04-13 09:33:21
“Bitcoin is growing by a power law trend. Now, a power law is a very unique characteristic that is not typical of a financial asset — it's more typical of, for example, the growth rate of a city. The growth rate of a city like New York or Tokyo follows a power law. Now, why would this happen to a financial asset? Well, because it's not only a commodity, it's also a social network. When you start to understand that, you start to understand why or how Bitcoin can also be growing not only as a financial asset like gold, but also as a social network like Facebook. That gives one confidence. If you have Ethereum or XRP — it doesn’t have that.
We could put our algorithm on Ethereum and it would do like 4–5x what Bitcoin would do — but not safely. It wouldn't survive all the stress testing that we would do. The ironic thing about Bitcoin is that it almost has predictable growth. If you take away the boom and bust cycles, it is actually growing at a very steady rate. It's scale invariant. In other words, at every scale, it's increasing.
But it's also diminishing returns, which we believe is one of its strengths. This is also a contrarian idea. People think that the adoption is going to take off and it's going to explode, whereas our position is that the explosive growth has already happened. What's going to happen now is we're going to have diminishing bubbles, diminishing returns — but a steady rate of growth, potentially forever, as long as it exists in a fiat system.”
Kostas Ozuas / Ep.35 / 35:05
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