Profile picture
Eric Lombrozo @eric_lombrozo
, 6 tweets, 1 min read Read on Twitter
Monetization (in the sense of creating a widely accepted monetary standard) is a very different process than taking a company to profitability.

The State has enjoyed a monopoly over monetization throughout our lives. Therefore, most entrepreneurs have no experience here.
When faced with novel challenges, people tend to fall back on familiar habits. Starving for adequate analogies, superficial resemblances are taken as fundamental. For instance, equity markets are far more familiar to investors and entrepreneurs.
In an equity market, people own shares of means of production. A modern economy has many industries that specialize in different areas. This allows society to scale and become more efficient. But having many monetary standards does the opposite.
Even more importantly, the incentive structure of stock markets is completely different than that for money. Company officers who are also large shareholders are incentivized to maximize shareholder value. And in a competitive market, this makes sense.
But in the case of money, this creates perverse incentives to just print more of it, effectively transfering wealth from current holders to issuers of new supply. And this transfer happens almost invisibly.
I do not believe most entrepreneurs are quite ready for this challenge. If nothing else comes out of cryptocurrency, at least we might relearn skills lost as we became more and more dependent on the State to issue, regulate, and tax the use of currency.
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Eric Lombrozo
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member and get exclusive features!

Premium member ($3.00/month or $30.00/year)

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!