# 201.4 Lesson - nashEquilibrium

**Screen:** nashEquilibrium

**Headline:** The Key to Facilitating Trade

**Reward:** 3

**Text:** Acquiring an item with the expectation that it will be desired as a future store of value can accelerate its adoption for that purpose. This process can create a feedback loop that drives societies towards adopting a single store of value.

In game theory, this is known as a "Nash Equilibrium". Reaching a Nash Equilibrium for a store of value can greatly benefit a society, as it makes trade and the division of labor easier and paves the way for the development of civilization.

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## QUIZ

**Question:** What is a Nash Equilibrium and how does it benefit society?

**Answer:** A concept that helps societies decide on a single store of value

**Feedback:** Congratulations, you are correct! A Nash Equilibrium is a concept in game theory that refers to a situation in which no player can gain an advantage by changing their strategy. In the context of choosing a store of value, achieving a Nash Equilibrium means that society has converged on a single store of value, which greatly facilitates trade and the division of labor. Fun fact: Bitcoin is often cited as an example of a Nash Equilibrium, as it has become the dominant cryptocurrency due to its perceived value and widespread adoption

**Correct:** true

**Answer:** A type of dance that promotes trade and the division of labor

**Feedback:** Sorry, that is not the correct answer. While a Nash Equilibrium has nothing to do with dance, it is an important concept in game theory that can benefit society

**Correct:** false

**Answer:** A musical instrument that makes it easier to conduct trade and specialize in different tasks

**Feedback:** I'm afraid that is not the correct answer. While music can bring people together and facilitate cooperation, a Nash Equilibrium has nothing to do with musical instruments. It is a concept in game theory that refers to a situation in which no player can gain an advantage by changing their strategy.

**Correct:** false

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