If software is “free” the capital currently being invested in bits would “move” to the physical world.
Example to illustrate my reasoning: a barter economy currently has 2 farmers that produce 10 bags of rice and 2 other farmers produce 100 bananas.
Currently the rice farmers exchange 1bag of rice for 10bananas.
One of the rice producers finds a new grain that allows him to produce 1M bags of rice. The other rice producer switches to producing bananas because his rice production is meaningless.
The rich rice farmer wants all the rice and bananas he can get. Since he has so much rice he’s willing to give the banana producers a lot more rice per banana.
In our current economy we use money as an intermediary but I think the same logic applies. The people producing software (rice) will be willing to sell insanely good products in exchange for little money (bananas)
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