The Bitcoin Growth Game: why Bitcoin is the Perfect Non-Zero-Sum Game
The Bitcoin Growth Game
Let’s imagine the adoption of Bitcoin works like this: New Bitcoiners = 3 × Existing Bitcoiners / (Days since Bitcoin’s birth) The total population of Bitcoiners is then: New Population = Existing Bitcoiners + New Bitcoiners We start with just 1 person in the network: Satoshi, our legendary founder. At this point, Satoshi owns all 21 million coins, and the network has a nominal value of $1 per coin or $21 million in total.
Day 1: Sharing the Wealth
On the first day, 3 new Bitcoiners join the network, and Satoshi shares the coins equally (we use equal shares to simplify the game but it also works with not equal shares): Each of the 4 Bitcoiners now owns 1/4 of the coins. Each newcomer pays 1/4 of the total network value, which is $5.25 million. The value of the system isn’t determined solely by the coins but by the potential connections between participants, proportional to the square of the number of Bitcoiners. With 4 people, the new value of the system is 4² = 16 dollars per coin. Thus, the total network value becomes 21 million × $16 = $336 million, and each person theoretically owns $84 million worth of Bitcoin.
Day 2: Growing the Network
On day 2, 6 more Bitcoiners join:
New Bitcoiners = 3 × 4 / 2 = 6.
The network now has a total of 10 Bitcoiners. The price per coin increases to 10² = $100, and each new Bitcoiner pays $56 million for their share of the network. The total network value becomes 21 million × $100 = $2.1 billion. Each person owns 1/10 of the network, which is now worth $210 million per participant.
Weird “Bitcoin Communism” That Isn’t Communism
This system creates an unusual outcome: as Bitcoiners share the coins with newcomers, everyone becomes wealthier. Unlike traditional communism, this system requires each participant to invest their time and money earned outside the network to join. By doing so, they contribute to the network’s value and share in the resulting growth. It’s the perfect non-zero-sum game: everyone’s contributions increase the system’s value, and everyone wins by consensus.
Why It’s Not a Ponzi Scheme
Some might call this a Ponzi scheme, but it’s not. Here’s why: Voluntary Investment: Everyone invests resources (time, money, or effort) to join, and their participation directly increases the network’s value. No Guaranteed Recurring Gains: There are no false promises of perpetual returns — value grows only as more people join the system. Consensus-Driven Growth: The increase in Bitcoin’s value comes from consensus about its worth, tied to the network’s expansion and utility. Hedging Against Inflation: Over time, the fiat currency used to join the system loses value due to inflation, further incentivizing participation. Bitcoin grows faster than the debasement of fiat, offering a compelling store of value.
The Future: Hyperbitcoinization
At some point, the game could lead to hyperbitcoinization, where Bitcoin becomes the dominant global currency. But that’s a separate scenario for another game. For now, this simulation illustrates how Bitcoin’s network dynamics resemble a cooperative system where sharing and participation create continuous value growth for everyone involved. Key Takeaway Bitcoin’s unique growth mechanism isn’t just about supply and demand. It’s about creating a network where each participant’s involvement enhances the system’s value, reinforcing a cycle of shared growth. This “game” elegantly demonstrates why Bitcoin is unlike anything we’ve seen before.
