Centre of Gravity

The value of Bitcoin originates from its ability to diffuse risk. In registering the spot value of coordination, it signals the cost of overcoming the Prisoners Dilemma. Significantly, by the nature of Bitcoin’s reflexivity to sentiment, it is inherently volatile. There are other products which also reflect the value of space-time, but which exhibit less volatility. This reduced volatility is paid for in exchange for potential returns. Being able to tolerate volatility is rewarded with higher returns. However, to successfully invest in Bitcoin, you have to be able to honestly project your time-preference across four years. This investment in time is what ensured that the transaction flips in value from a gamble to an investment. Reflexivity is the value being exploited here. Reflexivity signals the cost of trust within a system of cooperation. Money is the technology we use to represent that trust, and with Bitcoin, the cost of that trust is experiencing an economic breakthrough.