The lindy effect explained in 3 Gifs:
The Lindy effect is a theory stating that:
The future life expectancy for anything is proportional to its current age.
Every additional time period survived, implies a longer remaining life.
Lindy applies to things like ideas, books, and technology.
Every minute, hour, day, week, month, year, or decade survived -- doubles the future life expectancy.
I've written the 5 In's Newsletters non-stop for 18 weeks.
We can assume I'll continue to share for 18 weeks more:
Bitcoin is lindy.
Every year it survives and tackles the obstacles faced, Bitcoin gets more valuable. More robust.
It's lasted a decade so far. If we apply it to lindy, we can assume it'll continue going for 10 years more.
People will entrust in Bitcoin the more hiccups it prevails and time it passes. Every decade survived will increase its life expectancy.
Obstacles Bitcoin Faces:
Bitcoin is not convenient for transactions. For instance, you can't buy a medium double-double from Tim Horton's:
Bitcoin is too volatile to replace the federal reserve (currently). That's because it's too speculative. No one knows where the value is headed.
A hiccup it faced recently is that the US Treasury wants to regulate crypto wallets like bank accounts. This would just slow down the progress crypto is trying to solve.
You've got to be aware that buying bitcoin is a speculative play.
You're betting on an asset with a fixed supply and high demand. It's based on the hope that bitcoin will be a future store of value. Maybe even surpassing the market cap for gold.
That's a risk many people aren't willing to take yet:
So far, surviving alongside these obstacles has made bitcoin more robust. It's over 170% this year.
Bitcoin is a reminder that the government cannot monopolize currency. It brings money back to the people as the world’s first organic currency.
Two things to sum it up:
Betting bitcoin will be gone in a decade is betting against the evidence of history.
Putting a bit of cash into bitcoin ensures your wealth becomes Lindy.