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1/ Does #Bitcoin 
have a free-rider problem?
No, but smart people fall for the Bitcoin Free-rider Fallacy.
The free-rider problem is a real phenomenon in economics. When someone beneifts from a public good without contributing, it can be considered free riding.
have a free-rider problem? No, but smart people fall for the Bitcoin Free-rider Fallacy.
The free-rider problem is a real phenomenon in economics. When someone beneifts from a public good without contributing, it can be considered free riding.
2/ There was a valid argument by @naval that star developers will be more likely to start their own blockchain or work for one with a premine instead of contibuting to Bitcoin because of the perceived free-rider problem. https://www.investopedia.com/terms/f/free_rider_problem.asp
3/ Bitcoin blockspace can been looked at as a public good.
https://link.medium.com/eHKkKSrYT7
BTC is not a public good. HODLing & using Bitcoin is not free-riding.
The problem is, most smart devs/founders coming from SV/startup scene mistakenly think of Bitcoin with the equity mindset.
https://link.medium.com/eHKkKSrYT7
BTC is not a public good. HODLing & using Bitcoin is not free-riding.
The problem is, most smart devs/founders coming from SV/startup scene mistakenly think of Bitcoin with the equity mindset.
4/ Star developers & founders who fall for the Free-rider Fallacy look at Bitcoin & think it's similar to a cap table.
They think "I don't have any BTC, why would I expend my energy working on Bitcoin, when it will benefit all of the holders more than it will benefit me?"
They think "I don't have any BTC, why would I expend my energy working on Bitcoin, when it will benefit all of the holders more than it will benefit me?"
5/ #Bitcoin is not like startup equity.
Startup equity = you want small cap table.
Currency = you want biggest distribution possible.
Free-rider problem mindset applied to currency causes wealth inequality, we *want* Bitcoin gini coefficient to trend down (unlike the USD.)
is not like startup equity.Startup equity = you want small cap table.
Currency = you want biggest distribution possible.
Free-rider problem mindset applied to currency causes wealth inequality, we *want* Bitcoin gini coefficient to trend down (unlike the USD.)
6/ in 2009 @DanielPink did a great Ted Talk where he laid out the case that most developers are motivated by autonomy, mastery & purpose.
https://www.ted.com/talks/dan_pink_the_puzzle_of_motivation
@Blockstream solved the financial incentive misalignement by paying well & giving giving BTC bonuses to employees.
https://www.ted.com/talks/dan_pink_the_puzzle_of_motivation
@Blockstream solved the financial incentive misalignement by paying well & giving giving BTC bonuses to employees.
7/ If a star developer/designer/entrepreneur's financial needs are met THEN they can think about autonomy/purpose/mastery.
The #FreeriderFallacy is real, and I believe it's why the majority of new developer & entrepreneur mindshare goes to 'blockchain not bitcoin' projects.
The #FreeriderFallacy is real, and I believe it's why the majority of new developer & entrepreneur mindshare goes to 'blockchain not bitcoin' projects.
8/ The free market might fix this by continual bleeding of token treasuries & VCs war chests.
Bitcoiners can help rehabilitate by understanding the mindset of these good people & appealing to their sense of purpose & mastery.
Understanding, empathy, passion & truth FTW!
Bitcoiners can help rehabilitate by understanding the mindset of these good people & appealing to their sense of purpose & mastery.
Understanding, empathy, passion & truth FTW!
9/ The other way is their way.
We should compete with crypto VCs & blockchain companies who raised billions of dollars to funnel good talent towards their ICO projects.
We need a Bitcoin SEAL Team Six to poach great teams & devs back to Bitcoin where they can focus on purpose.
We should compete with crypto VCs & blockchain companies who raised billions of dollars to funnel good talent towards their ICO projects.
We need a Bitcoin SEAL Team Six to poach great teams & devs back to Bitcoin where they can focus on purpose.
