Now what does all this have to do with Bitcoin? If Bitcoin can truly represent the total value of the entire economy — past, present, and future — then it’s the closest thing we’ve ever seen to a real-life St. Petersburg game. Like the St. Petersburg game, the payout itself would be finite (bitcoin will probably always have a quantifiable value attached to it), but its potential approaches infinity.
In one sense, this highlights the asymmetric risk-reward tradeoff of investing in bitcoin. You can only lose what you put in, but the potential reward is much, much higher. In another sense, this thought experiment recommends putting everything you can into bitcoin, without paying any mind to your potential losses. The only thing to keep in mind when you’re deciding whether or not to put an extra $100 of your fiat currency into bitcoin is how you could use that $100 right now. If the money is the difference between paying your utilities or having your water cut off, it’s probably smarter to hold onto it. After all, even the best scenario for bitcoin won’t add as much happiness to your life as forgoing showers for a month would take away. But if you’ve paid off all your credit cards and the rent check is in the mail, then know the extra dollars you put into bitcoin are endorsed by economic theory over the past few hundred years.