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The first thing is false or worded poorly. Before Bitcoin became globally popular, there were many examples of digital scarcity driving significant transaction volume: Early online games with tradeable game objects, gimmicks like Million Dollar Homepage, etc.

Valve hired economist and future politician Yanis Varoufakis in 2012, when Bitcoin was well below $1000, to study "in-game economies" (i.e. digital scarcity) because it was such a big deal in their existing online games.



That last example postdates Bitcoin, and even Bitcoin entering public consciousness (in 2011), so why bring it up ?

Bitcoin was not much in the public consciousness by then. It was trading at ~$10, mainly on MTGOX. It's likely its transaction volume was much lower than other non-crypto digital assets (and MTG cards) at the time.

2011 is when it had its first big public boom - and bust, accompanied by even generalist press reporting on it.

And the nerds at Valve would have been *in particular* aware of it. So causality is more likely to be reversed in that example.


You claiming that Valve hired an economist to study digital scarcity, not because of Valve's booming ingame economies, but because Bitcoin was at $10. Sure.

No, I want to insist on Bitcoin's intellectual legacy. Before ~2011, only a handful of niche nerds at the intersection of cryptography and (goldbug) economics had heard of related ideas. After ~2011, everybody had, and started building their own (like Etherium).



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