💋 [Analysis] How can Bitcoin stabilize if it's a Keynesian Beauty Contest? – Tony Sheng

Tony argues that one can claim that Bitcoin ($BTC) does not have a reason to stabilize because there is no Nash equilibrium since it does not fulfill the two requirements of:

• Everybody knows the equilibrium behavior of everybody else
• Everybody does not change their behavior

However, Bitcoin’s stability depends on the design of its “weighing machine,” which takes each equilibrium behavior adjusted for popularity and strength, and returns a net weight, price. Maximum stabilization would come when the entire world is using Bitcoin and everybody agrees on one way to value it.