Game Theory is Playing Out

Just this week, it was announced that a group of Amazon shareholders are lobbying for Amazon to allocate 5% of it’s reserves to Bitcoin.

Meanwhile, Eric Trump just spoke at Bitcoin MENA in Abu Dhabi on Bitcoin, deriding traditional assets, such as Trump family real estate, as lacking for their non-scarce and illiquid nature. A few thousands miles away, the Russian government started publicly batting around the idea of a strategic Bitcoin reserve.

Never mind Wyoming senator Cynthia Lummis' BITCOIN Act and incoming president Donald Trump’s pro-Bitcoin policy positions.

Game theory might be simply described a means of evaluating outcomes that will likely manifest in light of the various actors in play and their respective incentives.

Since Bitcoin is like monetary gunpowder (adopt it or lose to those who do) and not a MySpace-equivalent tech company, it only stands to reason that as more large institutions and nation states come to understand it, more will adopt it.

What is so interesting is how quickly it all seems to be coming together.

Financial (not to mention geopolitical) trust amongst global economies is broken, and what better form of money to resort to than a trustless, digital commodity with no central issuer.

The hesitation up to now could be a failure to understand Bitcoin, but it is more likely that Bitcoin represents a monetary revolution - the divorce of money and State - that powerful people with access to fiat money printers have pushed off as long as possible.

But, of course, you can’t run from the best form of money for financial applications any more than you could run from using gunpowder for military applications.

Game theory seems to be playing out in a real, material way. How long it takes for the impact to be significant is anybody’s guess, but if recent headlines offer any indications… it could be sooner than you might imagine.

Best you get a bit of this Bitcoin thing in case it really takes off. Because once the big boys get in with trillions of dollars to buy and no intent to sell, you’re most certainly going to end up with a lot less Bitcoin than if you started accumulating now.