In the physical world scarcity is what leads to value.
In the digital world abundance is what leads to value.
There is no such thing as scarcity in digital goods. They can be replicated instantly and as many times as you want without losing quality.
This has led many who grew up in the world where scarcity was the measure of value to conclude that digitatization equals value deflation.
But I believe the exact opposite happens. You must embrace what digital offers. The ability to rapidly replicate is the way to create value in the digital world.
Fred Wilson provides some interesting examples of how some companies have taken advantage of this. Read more
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