Bitcoin is like a game of musical chairs
This analogy has been used long before me but I think it's a great way to think about Bitcoin's scarcity and the different strategies we have to stack it.
The analogy isn't perfect. In musical chairs the number of chairs is reduced each round whereas with Bitcoin the number is increasing asymptotically towards 21 million. Essentially we can think of Bitcoin as a game where the number of chairs is fixed but the number of participants can change.
Another place the analogy breaks down is that with Bitcoin you don't have to leave your chair when the music starts. We call this the HODL strategy. In musical chairs it would be called cheating but with Bitcoin it's a valid strategy. Add DCA into your strategy and you can start to accumulate more than the chair you started with.
Some people have a strategy of leaving their chair with the hope of reentering later to obtain more chairs than when they started (i.e. sell high and buy low). We all know this is a risky strategy because the number of chairs is fixed and only so many people can successfully pull it off. If you are the lucky kind that can pull it off, more power to you, but I'll stick with my DCA and HODL strategy.
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from Bitcoin - The Currency of the Internet https://ift.tt/nW2zO3P
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