As a market runs hotter, it becomes harder for new entrants.

· Bits and Bobs 9/21/26
  • As a market runs hotter, it becomes harder for new entrants.
    • The bar for "good enough" keeps on rising up and up, making the initial investment for new entrants higher and higher.
    • The lower the friction in the ecosystem, the faster the traffic goes to the best option.
      • Ecosystems rooted in bits have orders of magnitude less friction than ecosystems rooted in atoms.
    • Competition in a flat plane.