Economics
The first lesson of economics.
What is Scarcity?
Explains how people rationally behave when the melt value of a commodity money drops below the face value, while circulating among versions of a higher purity.
What is Gresham's Law?
Has a crucial advantage over the fiat system
What is Bitcoin?
The observation that consumption of a resource increases when efficiency gains are achieved through its use.
What is Jevons paradox?
Representing numbers in a compact form of multiples of ten to make comparisons more intuitive
What is orders of magnitude?
New units of money create disproportionate price inflation when added into an economy based on the path they travel.
What is Cantillon effect?
Assumes that legal tender laws attempting to enforce the use of an impaired form of money at a specific denominated value will go ignored at a certain threshold
What is Thiers' law?
When doing one thing comes at the cost of not being able to do something else.
What is opportunity cost?
A property of certain markets where minor advantages over competitors result in capturing all or most of the market.
What is winner-take-all effects?
New technologies must offer a benefit ten times greater than a predecessor or substitutes to gain widespread adoption.
What is 10X improvement rule?
Offers an antidote with its perfectly inelastic money supply.
What is Bitcoin?
Relationships between two quantities, where changes to one lead to a disproportional relative change to the other.
What is Power laws?
The degree to which someone values the present relative to the future.
What is time preference?
The faulty reasoning that a single unit must be the appropriate amount from which to make assessments and comparisons.
What is unit bias?
A phenomena whereby each additional user to a network adds disproportionately more value and utility.
What is network effects?
The solution that people choose by default in the absence of communication.
What is Schelling point?
Help to explain the correlation in certain nonlinear relationships and can be found across various fields, from linguistics to biology to astronomy.
What is Power laws?
Is a stark reminder to central planners of the trade-offs in setting international monetary policy
What is the impossible trinity?
Types of goods where the quantity demanded increases as the price increases
What is Veblen good?
The rate of user attrition, often expressed as a percentage.
What is Churn?
Facilitates social scalability by increasing the opportunities for..exchange
What is money?
The observation that the number of transistors on a computer chip doubles approximately every two years.
What is Moore's law?
Using math to determine if it’s better to cooperate or compete in multiplayer games.
What is prisoner's dilemma?
The tendency to accept the first answer offered, regardless of correctness, shutting out any further inquiry or debate.
What is first conclusion bias?
A force that opposes the relative movement of something.
What is friction?