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Fernando Nieto @fnietom
, 4 tweets, 3 min read Read on Twitter
On July 18, 2010 ArtForz started mining bitcoin with GPU, reducing drastically the reward for the rest of the miners. The result was pretty interesting: instead of putting them out of business, the price jumped 10x to fully compensate the new difficulty. ofnumbers.com/2014/04/20/how…
The subjective theory of value states that the value of a good is determined by the importance an acting individual places on it. ArtForz was not selling, so he restricted the offer forcing buyers to reconsider the subjective value of bitcoin and buy at CPU miners price.
Pricing collectibles such as #gold or #bitcoin is very different from pricing other objects. When #offer is depleted #price can quickly jump orders of magnitude. #monetization #hyperbitcoinization
We can only find similar examples of offer depletion in non collectibles when a government forbids something and a risky black market is the only way to buy it and save your life (eg. pharmaceutical drugs in Venezuela, ilegal migration transport, ...).
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