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@ The Modern Sovereign
2025-05-16 02:02:02
What Is a Veblen Good—and Why Bitcoin Might Be One
In traditional economics, when prices rise, demand usually falls. But not all goods follow this rule. Enter the Veblen good—a category of products for which demand actually increases as price increases. Why? Because these goods derive part of their appeal from being expensive.
Named after economist Thorstein Veblen, who coined the term "conspicuous consumption," Veblen goods are often luxury items—designer handbags, high-end watches, luxury cars—that people buy not just for their function but to signal wealth, exclusivity, or status.
So, where does Bitcoin fit in?
As the price rises, so does its visibility, media attention, and perceived legitimacy. This, in turn, draws more interest—not less. For some, owning Bitcoin isn't just about decentralization or technology—it's about being part of something elite, futuristic, or even rebellious.
Like a Veblen good, Bitcoin’s rising price can actually fuel more demand, driven by social status, scarcity, and the belief that holding it signals insight, foresight, or wealth.
In that sense, Bitcoin isn’t just a cryptocurrency—it’s a digital Veblen good. #Bitcoin https://image.nostr.build/78d36f11702d53ec3de0fb2f90fcd5a59d01fdfd0dd8826e5bfc9fd170038821.jpg