The trojan horse model never made sense to me. at what point is Bitcoin SO valuable to central banks that they voluntarily surrender the ability to *print* money? What am I missing?

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Lucid's avatar
Lucid 1 year ago
They'll come to the realization that their money is useless. It's outdated.
I don’t think they *voluntarily* surrender anything. The game theory makes it so they must hold it, for their own survival (relevant searches: Nash equilibrium in a coordination game, prisoner’s dilemma, first mover advantage). They can still print to the extent that fiat currencies keep their entrenched network effects but it loses its benefit over time and hurts whatever legitimacy they have more and more. So if they’re smart they use at least part of the print to buy BTC. This ultimately makes NGU which empowers early adopter (or any smart opportunist, really) to invest in / build infrastructure that goes completely around them.