I came across something interesting and thought might be worthy to share. I am currently in a country where Reddit is banned and taxi gangs have monopoly over certain areas so Grab/Uber drivers are not allowed to pickup passengers from certain areas.
The fact that you’re reading this shows I managed to overcome the ban to assess Reddit nevertheless. And I did that because the value of using Reddit is more than what is preventing me from doing so. It’s simple economics. If people find something useful and valuable, they will find a way around the problem.
And ever since I knew about the taxi gangs situation, I no longer take any taxi rides anymore. I simply walked away from those spots, same as everyone else here, and we all took Grab/Uber anyway. It’s all down to simple economics. The price of taxi here cost at least twice as much as Grab/Uber for the same trip. Even if the taxi gangs want to, they can’t compete with simple economics. Consumers will do what makes sense and use the better service. It’s basic economics.
Earlier this year, the government of Venezuela forced all businesses to increase the minimum wage by 300%. Maduro thought that by doing this, he solved the financial problems for the workers. What happened in reality is that businesses were forced to let go of the workers, because their business simply does not make enough money to pay such wage hikes. Instead of increased wages, now the workers are jobless and out of any income. This is simple economics and even the government of Venezuela cannot compete with basic economics.
It is also simple economics that if you have BTC that is slow and unreliable and cost over $50 per transaction during peak periods vs Bitcoin Cash that is fast/reliable/affordable (tokens + privacy + progress etc), people are going to end up using Bitcoin Cash. BTC extremists are like the taxi gangs, using threats and harassment, to scare people away from Bitcoin Cash. Indeed, it is very scary for BTC extremists to compete against a superior Bitcoin Cash. Obviously, they are worried their threats and harassment will not be able to compete against simple economics. If I were them, I would be worried too.
Any smart investors know the difference between price and value. And anyone who could understand value will profit while anyone who only understand price will end up paying the price. In the end, the fool will leave with the experience and the wise will leave with the fool’s money.
With that in mind, it all makes sense why Xapo wants to be sold to Coinbase. Because they thought Bitcoin Cash wouldn’t survive, but it did, and if they were to buy back what they had sold, they would end up paying a lot more than what they had dumped those Bitcoin Cash for. They wanted to leave a sinking ship while they still can, because they understood basic economics. They are the smart ones.
Will economics win or will the taxi gangs (aka BTC extremists) with their threats/harassment against the Bitcoin Cash community win? We will know in time. =)