The Power of Incentives

"Show me the incentives and I will show you the outcome." - Charlie Munger ​If there's one thing I've learned since getting into crypto, it's that incentives drive everything. After all, Bitcoin only works because of the economic incentives that underlie the system. For those who may not know, I'm referring to the coinbase reward that incentivizes miners to expend CPU time and electricity as described in section 6 of the white paper.