Dear Readers,
One of the most stunning parts of the Bitcoin phenomenon has been the cryptocurrency’s status as a “number go up” technology, which is a term coined by participants in the crypto space a few years ago. At its root “number go up”, or NgU for short, refers to the fact that Bitcoin’s value is pre-programmed to rise when compared to the value of any other currency, asset, good, or service for the simple fact that Bitcoin’s supply is capped while the supply of everything else is not. However, I also like to think about it in the context of the virtuous cycle behind Bitcoin’s price increases, which can be visualized in the following chart:
It’s likely that many of us were ourselves brought into Bitcoin when we caught wind of its previous massive gains in price, fell down the rabbit hole studying it, realized its awe-inspiring benefits and potential, and purchased our first sats (i.e., fractions of a Bitcoin). This is the beauty of Bitcoin’s NgU behavior and explains in part why Bitcoin’s price continues to increase so rapidly even after a decade of already astounding growth.
