With the BTC doubling curve, I guess this assumes that Bitcoin will be able to find more and more new money to buy it at the new higher prices? For every significant price rise I assume it requires exponentially more new money...?
Money doesn't need to come in/out for price to go up/down.
The only thing that determines price are bids and asks on the orderbook.
Bitcoin's core value comes from within the network, not from outside investors.
Outside investors are the ones that pump/dump the price and make it volatile.
To think that value can't be built on the network itself is a huge mistake.
That is where all the long-term value comes from.
Using this same logic we could claim that all economies are a zero-sum game and there is no way to build value without leeching from another. This is obviously not the case, as it would imply that all economies have always existed since the beginning of time and that no new resources ever enter them. It essentially discounts the very idea of technology itself and how value is built out of thin air on a daily basis.
Just to clarify, when you say that value is built on the network, are you talking about new functionality for Bitcoin, dApps, businesses accepting it, etc... or are you talking about the users within the BTC ecosystem buying and selling BTC amongst themselves? Or something else?
Really hard to explain this but we should be thinking of Bitcoin and the cryptoverse in general as an actual economy, not just currency. Take the project I want to build: Magitek. If/when I build it, it adds value to Bitcoin as well because all crypto is intrinsically connected directly and indirectly through easily accessible liquidity pools.
The entire economy being built here is open source and collaborative, making competition and intellectual property impossible. This is a good thing because closed source systems do not scale and become stagnant and stifled.
Essentially, saying that Bitcoin needs exponential value to be coming in from the outside is like saying technology can't exponentially develop without exponential resources. We already know this to be false, and technology just keeps chugging along at absurd speeds even though the resources we pump into it are largely linear.
Ah, that's the piece of the puzzle that I didn't understand... Bitcoin can double every year because the whole crypto ecosystem is continuously expanding in every direction. Bitcoin will always benefit because of the related liquidity pools and the movement of capital to and from projects within the crypto ecosystem.
Thanks!
Yeah you can think of Bitcoin as the security coin that gives security to every other coin. Security is important so Bitcoin will always be there for crypto when it comes under attack.