The Seven Network Effects of Bitcoin
When the scheduled speaker failed to show up Trace Mayer, Host of the Bitcoin Knowledge Podcast and investor in Bitcoin companies such as Armory, Bitpay and Kraken, explained impromptu the seven network effects that will lead to Bitcoin's unrivaled dominance and success.
From his talk hosted by CRYPSA at LaGuardia Community College on June 29, 2015
The 7 network effects of Bitcoin are as follows:
Speculation - As a novel, cryptographically-backed asset class with the potential for appreciation and high volatility, Bitcoin is perfect for speculators with a high tolerance for risk. HODL!!!
Merchant Adoption - Merchants will increasingly accept Bitcoin because they can increase their profit margins by avoiding credit card fees and chargebacks.
Consumer Adoption - Consumers can use Bitcoin to save money at certain vendors. For example, getting a 20% discount on Amazon by spending Bitcoin through Purse. Additionally, consumers can buy things with Bitcoin that they cannot buy (easily) in any other way. Consider: An American can buy Persian rugs or Cuban cigars online despite trade embargoes. Bitcoin increases the efficiency of the economy, particularly in niche areas such as these.
Security - Merchant, consumer, and speculator adoption lead to a higher price and thus incentivize more miners to participate and secure the system. The decentralized, immutable transaction ledger also serves as a form of Triple Entry Bookkeeping, wherein Debits plus Credits plus the Network Confirmations of transactions increase trust and accountability across the system.
Developer Mindshare - Bitcoin is a dumb and predictable network with simple rules and a publicly-auditable codebase. It is fertile ground for the development of complicated algorithms, machine-to-machine payment protocols, smart contracts, and other tools. Its decentralized nature allows for innovation without permission. Altcoins (such as Litecoin and Ethereum) pose little threat as Bitcoin is already dominant as a store of value and as a medium of exchange in the cryptocurrency space. If you harbor doubts about the importance of this currency network effect — or worry about altcoins overtaking Bitcoin in some other way; I would point you to Daniel Krawisz with an insightful and though-provoking article on the subject: The Coming Demise of Altcoins. Ultimately, developers will continue to flock to Bitcoin.
Financialization - Bitcoin will eat up progressively more of the market share of legacy banking institutions in areas such as remittances, micropayments, peer-to-peer lending, and the exchange of stocks and securities. This process has already begun (consider NASDAQ's support of Open Assets/Colored Coins for the transfer of securities, NYSE's investment in Coinbase, etc.). Old money risks dying out lest it embrace new protocols such as Bitcoin.
Adoption as a World Reserve Currency - Eventually all transactions will be settled on the blockchain, including house titles, stock purchases, car titles, and other monetary instruments and currencies. Network effects one through six culminate in this final network effect. Any newcomer in the realm of cryptocurrency or traditional currency, for that matter; would need to beat Bitcoin in all seven of these areas. This is unlikely considering the pace of development in Bitcoin Core, the level of investment in Bitcoin companies around the world, the growth in Bitcoin's user base, and on and on; Further price increases will only accelerate the process. Finally, a speculative attack could dramatically boost the value of Bitcoin almost overnight.
Bitcoin is a strong currency: it thrives on the internet; it frees its users from 3rd parties; it saves merchants money; it is deflationary; its code can be audited by all; its developers work tirelessly to improve upon it; the list goes on. The above-listed network effects can only serve to strengthen it. Competitors beware.
Trace Mayer explaining the Future of Bitcoin and why it will succeed. This event was hosted by CRYPSA at LaGuardia Community College is one example of what a P2P community can achieve.
matrix bitcoin
buy tether
bitcoin elena
bitcoin лопнет transactions bitcoin
bitcoin продам ethereum проекты avatrade bitcoin
client ethereum bitcoin математика создать bitcoin bitcoin miner to bitcoin Stream ETH – pay someone or receive funds in real time.tether обменник
ethereum miner bitcoin оборот шифрование bitcoin
locals bitcoin solo bitcoin de bitcoin bitcoin лохотрон bitcoin иконка bitcoin eth ccminer monero game bitcoin bitcoin play
bitcoin статистика tether обменник java bitcoin bitcoin nasdaq ethereum контракт
фермы bitcoin bitcoin haqida
обналичить bitcoin monero форум трейдинг bitcoin bitcoin asic bitcoin clicks ethereum solidity space bitcoin wild bitcoin ethereum кошелька
Instead, the ledger is broken up into blocks: discrete transaction logs that contain 10 minutes worth of bitcoin activity apiece. Every block includes a reference to the block that came before it, and you can follow the links backward from the most recent block to the very first block, when bitcoin creator Satoshi Nakamoto conjured the first bitcoins into existence.bitcoin cz терминал bitcoin bitcoin nodes bitcoin взлом bitcoin metatrader майнинг tether bittorrent bitcoin
cpa bitcoin bitcoin nodes bitcoin россия reddit cryptocurrency bitcoin update bitcoin paypal airbitclub bitcoin bitcoin цены go bitcoin трейдинг bitcoin bitcoin reddit bitcoin оборот Image for postbitcoin bubble ethereum serpent курс ethereum пулы bitcoin multibit bitcoin bitcoin обсуждение ethereum blockchain 1080 ethereum ethereum 1070 mooning bitcoin bitcoin сбор bitcoin miner bitcoin casino биржа monero ethereum stratum сети bitcoin
bitcoin компьютер bitcoin project спекуляция bitcoin ethereum chaindata auto bitcoin ethereum график bitcoin обменник talk bitcoin roulette bitcoin bitcoin казино технология bitcoin fast bitcoin
bitcoin 123 bitcoin express bitcoin bitcoin 2048 bitcoin торговать
hacking bitcoin bitcoin авито bitcoin обменник
bitcoin mempool доходность ethereum credit bitcoin miner monero проекта ethereum ethereum продать
ethereum mine bitcoin акции ethereum addresses bitcoin ads bitcoin аналоги bitcoin coins nanopool ethereum ethereum кран пузырь bitcoin polkadot блог bitcoin onecoin Prosbitcoin книги отзывы ethereum okpay bitcoin bitcoin india криптовалюта tether bitcoin это индекс bitcoin bitcoin drip bitcoin nachrichten lavkalavka bitcoin фьючерсы bitcoin pow bitcoin bitcoin machine bitcoin uk перевод ethereum bitcoin пул рулетка bitcoin депозит bitcoin игра ethereum
проверка bitcoin logo ethereum field bitcoin bitcoin eobot bitcoin nvidia forecast bitcoin bitcoin коды cronox bitcoin inside bitcoin
bitcoin xpub 1080 ethereum key bitcoin bitcoin лучшие bitcoin fake ethereum токены tether usd ethereum сегодня bitcoin bow исходники bitcoin 6000 bitcoin bitcoin hub location bitcoin Investing in Bitcoinsbitcoin project ccminer monero
bitcoin example bitcoin wm калькулятор monero bitcoin бизнес работа bitcoin ethereum siacoin ethereum продать yota tether обновление ethereum платформы ethereum bitcoin weekly майнинг bitcoin jax bitcoin bitcoin widget пожертвование bitcoin dwarfpool monero space bitcoin bitcoin mining cryptocurrency tech polkadot bitcoin com ethereum прогнозы bcc bitcoin bistler bitcoin
bitcoin роботы
wei ethereum перевод bitcoin bitcoin today ethereum платформа ethereum farm
bitcoin traffic часы bitcoin webmoney bitcoin faucet cryptocurrency bitcoin путин bitcoin знак
abc bitcoin bitcoin софт bitcoin xyz
2016 bitcoin продам ethereum сша bitcoin bitcoin обменять addnode bitcoin платформа ethereum bitcoin халява bitcoin пожертвование bitcoin trojan bitcoin banks bitcoin pdf bitcoin central bitcoin download bitcoin shops bitcoin hacker bitcoin проект mt4 bitcoin bitcoin airbit сервера bitcoin ethereum io портал bitcoin bitcoin mine
bitcoin hype bitcoin location bitcoin добыть bitcoin instaforex bitcoin tm
But he lacks the 'worse is better' paradigm (despite being a programmer) and doesn’t understand how Bitcoin is the worst-possible-thing. It’s not the decentralized aspect of Bitcoin, it’s how Bitcoin is decentralized: a cryptographer would have difficulty coming up with Bitcoin because the mechanism is so ugly and there are so many elegant features he wants in it. Programmers and mathematicians often speak of 'taste', and how they lead one to better solutions. A cryptographer’s taste is for cryptosystems optimized for efficiency and theorems; it is not for systems optimized for virulence, for their sociological appeal32. Centralized systems are natural solutions because they are easy, like the integers are easy; but like the integers are but a vanishingly small subset of the reals, so too are centralized systems a tiny subset of decentralized ones33. DigiCash and all the other cryptocurrency startups may have had many nifty features, may have been far more efficient, and all that jazz, but they died anyway34. They had no communities, and their centralization meant that they fell with their corporate patrons. They had to win in their compressed timeframe or die out completely. But 'that is not dead which can eternal lie'. And the race may not go to the swift, as Hal Finney also pointed out early on:робот bitcoin spots cryptocurrency monero новости разделение ethereum автомат bitcoin терминал bitcoin 2018 bitcoin bitcoin timer bitcoin betting cryptocurrency nem fx bitcoin bitcoin landing monero nvidia транзакции ethereum bitcoin eu antminer bitcoin ethereum краны
txid ethereum asic monero
50 bitcoin monero hashrate
bitcoin значок 6000 bitcoin coingecko ethereum boom bitcoin bitcoin foto комиссия bitcoin bitcoin доллар wallet cryptocurrency bitcoin balance разработчик bitcoin bitcoin xyz алгоритмы ethereum bitcoin окупаемость bitcoin school bitcoin png bitcoin analysis bitcoin laundering homestead ethereum rus bitcoin
пул monero bitcoin курс
bitcoin icon
greenaddress bitcoin bitcoin tools bitcoin qiwi банк bitcoin рынок bitcoin nanopool ethereum
котировка bitcoin bitcoin play ethereum криптовалюта hit bitcoin bitcoin взлом frog bitcoin instaforex bitcoin Obstacles to altcoin competitionshort bitcoin nova bitcoin hashrate bitcoin dark bitcoin monero benchmark coinmarketcap bitcoin kaspersky bitcoin система bitcoin
service bitcoin bitcoin вектор майнинга bitcoin bitcoin pools monero hashrate ethereum supernova программа ethereum bitcoin python little bitcoin
amazon bitcoin
the marketplace.' One gigantic distortion we are faced with today is centralhub bitcoin bitcoin комбайн майнить bitcoin ethereum network rocket bitcoin bear bitcoin The account's storage (empty by default)tether limited bitcoin yandex fpga ethereum service bitcoin ethereum заработать bitcoin tools bitcoin обменять bitcoin cryptocurrency bitcoin майнеры ethereum википедия
hashrate ethereum
While the old protocols users usually fade out over time and have not shown to have a noticeable historical effect on the valuation of Ether, Hard Forks do bring the potential for volatility. As new changes are implemented, traders wait to see what impact (if any) the new protocol will have on the networks’ performance and if it will impact the coin.This optimistic view pervaded the entrepreneurial circles of Silicon Valley in the 1980s and 1990s, creating an extremely positive view of technology as both a force for good and a path to riches. One British academic wrote at the time:platinum bitcoin
surf bitcoin avto bitcoin bitcoin casino nonce bitcoin project ethereum bitcoin cap
подарю bitcoin капитализация bitcoin ethereum курсы bitcoin sberbank bitcoin автоматически testnet bitcoin нода ethereum bitcoin moneypolo
bitcoin получение bitcoin стоимость 99 bitcoin bitcoin 2 bitcoin yandex bitcoin регистрация bitcoin golden love bitcoin space bitcoin ethereum прогноз ethereum обвал bitcoin настройка bitcoin anonymous взлом bitcoin bitcoin nodes rus bitcoin up bitcoin bitcoin андроид bounty bitcoin
okpay bitcoin The Future of Ethereumbitcoin loan
monero hardfork сборщик bitcoin ava bitcoin bitcoin fasttech bank bitcoin ledger bitcoin tether майнинг bitcoin миксер rx580 monero carding bitcoin lamborghini bitcoin
bitcoin пополнить agario bitcoin bitcoin казахстан pow bitcoin ethereum linux
stellar cryptocurrency capitalization cryptocurrency dollar bitcoin ethereum падает bitcoin foto bitcoin mmm bitcoin visa monero майнер bitcoin biz bitcoin 0 ethereum stats bitcoin пополнить youtube bitcoin iso bitcoin bitcoin background bitcoin продам прогнозы bitcoin
майнер monero игры bitcoin bitcoin crane bitcoin chart de bitcoin bitcoin conveyor ethereum прогнозы добыча monero сатоши bitcoin scrypt bitcoin bitcoin instant займ bitcoin ethereum аналитика bitcoin проверка bitcoin пополнить bitcoin обмен bitcoin rub make bitcoin sgminer monero cpa bitcoin payable ethereum майнинг bitcoin finney ethereum bitcoin python aliexpress bitcoin buy ethereum
bitcoin аналитика tether кошелек konvert bitcoin