THE LINDY EFFECT: Why you underestimate Bitcoin In the video below, Bill Gates tries to explain the advantages of a new technology called the Internet to TV moderator David Letterman in 1995. Letterman and the live-audience obviously find it difficult to understand the significance of this new and groundbreaking technology. Back then, the Lindy effect for the Internet was still small. The Lindy effect states that the life expectancy of a technology or idea increases proportionally with its age. The longer the Internet exists, the less uncertainty there is about the reliability and stability of the technology. What has stood the test of time will probably continue to do so for a long time to come. In 1995, the Internet was still new and not widely used. The average person might have already heard of this new technology, but had hardly gained any practical experience with it. The masses were not yet in a position to assess the future significance of the Internet for their lives. Nowadays, we are online virtually 24/7. Whereas in 1995 the Internet was still an optional toy for IT-nerds, today we subconsciously assume that the Internet is simply here to stay and will never disappear again. The Lindy effect is now very high. As I've covered in other posts, Bitcoin is a decentralized peer-to-peer electronic cash system and the discovery of absolute mathematical scarcity. It is not only the most efficient payment method, but also a completely new type of savings technology. Everything will fall in price forever compared to Bitcoin. In my opinion, absolute mathematical scarcity will change our society much more than the Internet has done. The Internet is basically "just" an evolution of telegraphy, which allows us to communicate information more efficiently. Bitcoin offers us, for the first time in human history, absolute scarcity that can be sent at the speed of light. It can be argued that Bitcoin thus solves the biggest problem since the dawn of civilization: It is the "perfect" money we have been looking for thousands of years. It is a new type of money technology to store your provided time and energy (money) without any loss. I couldn't think of a more efficient way to communicate value with strangers. Bitcoin has only existed for around 15 years. Just like in the early phases of the Internet, there are only a few people who have been intensively involved with this strange technology. In 2023, the average person has already heard of Bitcoin, but has either no opinion or an unprovable opinion of this technology due to a lack of knowledge. The Lindy effect is low. To the average person today, my statements about Bitcoin sound as strange as Bill Gates' statements about the Internet in 1995. Either you take a closer look at Bitcoin and gather theoretical and practical knowledge. Or you simply wait and watch as people put more and more trust in the Bitcoin Network. full video: https://lnkd.in/e44esn85
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