Winners win big because the marketplace loves a winner
Our culture celebrates superstars. We reward the product or the song or the
organization or the employee that is number one. The rewards are heavily
skewed, so much so that it’s typical for #1 to get ten times the benefit of #10,
and a hundred times the benefit of #100.
People don’t have a lot of time and don’t want to take a lot of risks. If you’ve
been diagnosed with cancer of the navel, you’re not going to mess around by
going to a lot of doctors. You’re going to head straight for the “top guy".
So talking bout crypto currency, we always look for the best in the world, to go satisfy that FOMO we have then whale in.
Turns out, you’re not the only person who looks for the best choice. Everyone does. As
a result, the rewards for being first are enormous. It’s not a linear scale. It’s not a
matter of getting a little more after giving a little more. It’s a curve, and a steep
one.
The Dip creates scarcity; scarcity creates value.