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Economics of Mittens & Socks

Some of the qualities of digital (including copying and multicasting) amplify “pay it forward”-style economies to a greater extent than “quid pro quo”-style economies.

Quid pro quo is still amplified since the seller can now sell the same thing to many (given an artificial scarcity mechanism to control price of copyable goods, such as copyright or chained crypto).

Paying it forward is amplified squared, since now the contribution of both sides of the transaction can be multiplied.

To restate that, in examples:

Physical QPQ:
Alice makes one sock. Alice gives it to Bob. Bob gives Alice one mitten.

Physical PIF:
Alice makes one sock. Alice gives it to Bob. Bob gives Carol one mitten.

Digital QPQ:
Alice makes one sock. Alice gives it to one thousand people. They each give Alice one mitten.

Digital PIF:
Alice makes one sock. Alice gives it to one thousand people. They each give a thousand others one mitten each.

Summary of mittens on Earth: One million. YW.