By James Currier, NFX General Partner
Bitcoin goes up. Bitcoin goes down. Maximalists laugh, skeptics sneer. It’s an emotional ride.
For a reason. Money is simply a belief held by a lot of people. The distillation of a shared confidence in the future. It’s what we call a “belief network effect.” It’s the same mechanism you see with gold and religions.
But there’s underlying math at work, and BTC represents more than just money. To understand Bitcoin’s current and potential value, we need to think from first principles. We need to look at the network math.
In this short video, we summarize our perspective on the real meaning of Bitcoin. We unpack from first principles the various network effects, defenses, and influences on Bitcoin — and its place in the crypto and Web3 ecosystem.
Network gravity will prevail.
