Bitcoiners talk a lot about “incentives” and I’ve recently started to gain a better understanding:
On
@Peter McCormack’s podcast,
@Brandon Quittem does a great job of explaining that wanting to make everything fair and by removing certain advantages so everyone can get the same outcome, completely changes the incentives of society. It rewards the wrong things and allows mediocrity to compound. Why innovate if there are no incentives?
Whereas free and open markets truly allow merit to rise. The small minority of people who create valuable products and services that change the world need to be shown the incentives in order to innovate.
An easy example of this is taxes: If business taxes are high, entrepreneurs won’t be incentivized to take the necessary risks to bring new products to market.
#Bitcoin helps you understand how market incentives affect human behaviour.
