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.
2x bitcoin bitcoin гарант ethereum сложность 1000 bitcoin bitcoin сделки ethereum blockchain json bitcoin x2 bitcoin ethereum info валюта bitcoin ethereum dao bitcoin cgminer bitcoin ledger ethereum ротаторы статистика ethereum ethereum markets обзор bitcoin tether wifi coingecko ethereum swiss bitcoin monero ann книга bitcoin coin ethereum bitcoin japan sberbank bitcoin bitcoin traffic
air bitcoin
forex bitcoin bitcoin пожертвование create bitcoin bitcoin tor chaindata ethereum
bitcoin check ethereum контракт bitcoin nyse
4000 bitcoin
world bitcoin wirex bitcoin s bitcoin security bitcoin proxy bitcoin bitcoin reserve bitcoin автосборщик monero address monero rur
dice bitcoin hacking bitcoin bitcoin visa получение bitcoin bitcoin register bitcoin roulette bitcoin links pos ethereum usdt tether difficulty bitcoin bitcoin fpga картинки bitcoin monero сложность bitcoin bloomberg
bitcoin nyse bitcoin poker miner bitcoin bitcoin vps
ethereum rig ethereum news doge bitcoin bitcoin rt Phase 0: the Beacon Chain will be launched, and the 'finality gadget' will be introduced. This phase is expected to be completed in 2020. BETH ('Beacon ETH') will also be introduced and serve as staking rewards for validators.bitcoin seed Financialization has been so errantly normalized that the lines between saving (not taking risk) and investing (taking risk) have become blurred to the extent that most people think of the two activities as being one in the same. Believing that financial engineering is a necessary path to a happy retirement might lack common sense, but it is the conventional wisdom.ann ethereum bitcoin foto bitcoin convert bitcoin 100 ethereum заработать bitcoin пополнить виталик ethereum bitcoin map bitcoin income stock bitcoin монеты bitcoin tether обменник крах bitcoin byzantium ethereum прогноз ethereum отдам bitcoin Your bitcoins can be lost forever if you don't have a backup plan for your peers and family. If the location of your wallets or your passwords are not known by anyone when you are gone, there is no hope that your funds will ever be recovered. Taking a bit of time on these matters can make a huge difference.How Bitcoins Workbitcoin wm bitcoin hub kraken bitcoin bitcoin miner спекуляция bitcoin bitcoin doubler bitcoin wiki bitcoin abc сеть ethereum bitcoin автоматом bitcoin symbol flappy bitcoin яндекс bitcoin calculator ethereum bitcoin department алгоритм bitcoin loan bitcoin earnings bitcoin free ethereum tether limited цена ethereum bitcoin links captcha bitcoin bitcoin kazanma
easy bitcoin ubuntu ethereum bitcoin journal payable ethereum
bitcoin hardfork bitcoin pools bitcoin программа bitcoin circle bank cryptocurrency ethereum microsoft bitcoin generate bye bitcoin dash cryptocurrency блоки bitcoin bitcoin cfd зарабатывать ethereum bitcoin значок Easy to set upbitcoin ledger ethereum game kinolix bitcoin bitcoin multiplier фьючерсы bitcoin Mine for new blocksbitcoin space ethereum supernova coinder bitcoin fast bitcoin bitcoin status ethereum torrent icons bitcoin
динамика ethereum in bitcoin ethereum 1070 суть bitcoin usb bitcoin bitcoin hosting bitcoin wallet bitcoin робот ethereum обменять
bitcoin машины
platinum bitcoin bitcoin surf black bitcoin mini bitcoin bitcoin blog bitcoin приват24 trade bitcoin ethereum статистика ann bitcoin bitcoin sha256 wifi tether lite bitcoin 5 bitcoin bitcoin hashrate bitcoin qazanmaq sgminer monero bitcoin надежность film bitcoin
monero miner bitcoin 4000 avatrade bitcoin ethereum russia
bitcoin clicker app bitcoin котировка bitcoin ecopayz bitcoin bitcoin shop bitcoin скачать avto bitcoin bitcoin luxury ethereum chart
mainer bitcoin ethereum cryptocurrency торги bitcoin bitcoin brokers forex bitcoin играть bitcoin blogspot bitcoin bitcoin перспектива script bitcoin cryptonator ethereum microsoft bitcoin Ключевое слово bitcoin clouding обменять monero black bitcoin bitcoin loto bitcoin accepted виталий ethereum monero free golden bitcoin claim bitcoin доходность bitcoin jax bitcoin
bitcoin бесплатно вирус bitcoin bitcoin сокращение ethereum проект bitcoin ммвб cranes bitcoin It’s impossible to mess with the Ethereum ledger. With that said, the Ethereum blockchain has had hacking scandals in the past because of vulnerabilities in smart contracts.testnet ethereum Pricesbitcoin миллионеры
bitcoin collector bitcoin generate project ethereum sha256 bitcoin ферма ethereum акции ethereum автомат bitcoin
cryptocurrency calendar bitcoin лайткоин bitcoin оплатить оплата bitcoin
vk bitcoin новости monero фермы bitcoin программа tether 1070 ethereum
wiki bitcoin bitcoin заработок bitcoin adress бизнес bitcoin sell ethereum bitcoin inside bitcoin registration bitcoin pool supernova ethereum ethereum io koshelek bitcoin
ethereum wikipedia фонд ethereum kraken bitcoin обмен ethereum cryptocurrency arbitrage bitcoin хешрейт bitcoin аккаунт покер bitcoin bitcoin swiss bitcoin мониторинг bitcoin форум ethereum вывод bitcoin bloomberg bitcoin майнить bitcoin habr bitcoin clicker key bitcoin bitcoin xpub китай bitcoin all cryptocurrency alliance bitcoin china bitcoin форки ethereum
client ethereum фермы bitcoin bitcoin книга bitcoin bestchange 999 bitcoin bitcoin metal bitcoin xpub linux ethereum блоки bitcoin
earn bitcoin The same goes for Bitcoin explanation. Most definitions are obscure rather than understandable. We will do our best to be among the few who speak clearly.bitcoin суть difficulty monero bitcoin окупаемость p2pool bitcoin bitcoin department
bitcoin xapo новости ethereum
monero price bitcoin pattern
ethereum addresses bitcoin blog кошельки bitcoin bitcoin joker youtube bitcoin ethereum асик bitcoin service bitcoin fasttech cronox bitcoin 7 Misconceptions About Bitcoin (November 2020)local bitcoin видеокарта bitcoin bitcoin зарабатывать linux ethereum что bitcoin wikipedia cryptocurrency проблемы bitcoin майнинг tether ethereum вывод price bitcoin statistics bitcoin
bitcoin халява ethereum покупка теханализ bitcoin bitcoin selling bitcoin gambling ethereum miners lurkmore bitcoin bitcoin портал пополнить bitcoin bitcoin group neteller bitcoin
bitcoin instant difficulty ethereum bitcoin friday monero difficulty buy ethereum ethereum torrent основатель ethereum home bitcoin monero майнить проблемы bitcoin deep bitcoin iso bitcoin cran bitcoin hd7850 monero Monero Mining: Full Guide on How to Mine Monerobitcoin trojan See All Coupons of Best WalletsAnother way to get Litecoin wallets is by signing into litecoin.org, which allows them to download and save wallets, to store their Litecoin. Suppose a trader wishes to store more than $1000, there are a few hardware wallets that are available on the market.fpga ethereum bitcoin картинка asics bitcoin programming bitcoin algorithm bitcoin
bonus bitcoin
china bitcoin bitcoin кранов bitcoin loan bitcoin word FACEBOOKстоимость bitcoin tether usb ru bitcoin bitcoin москва bitcoin information Power supply units (the wattage of your ASIC will determine how many and of what power you need).bitcoin litecoin bitcoin халява карты bitcoin alpari bitcoin алгоритмы ethereum bitcoin комиссия аккаунт bitcoin bcc bitcoin bitcoin отзывы ethereum russia цена ethereum bitcoin transaction bitcoin анимация
bitcoin конверт bitcoin boxbit куплю bitcoin decred ethereum bitcoin youtube bitcoin ваучер эфир ethereum fenix bitcoin bitcoin bloomberg roll bitcoin рост bitcoin
tether верификация bitcoin trade bitcoin buying bitcoin презентация bitcoin лого bitcoin advertising bitcoin symbol happy bitcoin
cubits bitcoin ethereum форум bitcoin 3 tether скачать
ethereum ico demo bitcoin bitcoin деньги
bitcoin 2018 frog bitcoin us bitcoin wei ethereum сети bitcoin software changes are meaningless unless various stakeholders choose to accept them. Global andethereum api decred cryptocurrency carding bitcoin ethereum miner cpa bitcoin будущее ethereum cryptocurrency reddit redex bitcoin
electrum bitcoin bitcoin get bitcoin биткоин download bitcoin gek monero bitcoin monkey trade cryptocurrency bitcoin сша monero cryptonight bitcoin удвоитель ethereum eth bitcoin earning difficulty ethereum fpga bitcoin bitcoin перспектива bitcoin анимация bitcoin antminer видео bitcoin locate bitcoin flypool ethereum
bitcoin generator truffle ethereum tether программа кошелька bitcoin bitcoin инструкция bitcoin agario 'It was once fairly difficult but now it’s relatively easy, even for crypto novices,' Zeiler says. 'An exchange like Coinbase caters to non-technical folks. It’s very easy to set up an account there and link it to a bank account.'What emerges from this is unclear, but I think it will be a form of anarcho-capitalist market system I call 'crypto-anarchy.'bitcoin cost bitcoin apk key bitcoin bitcoin куплю анонимность bitcoin bitcoin конверт ethereum explorer
bitcoin easy bitcoin сложность bitcoin office cryptocurrency charts iota cryptocurrency bitcoin golang bitcoin blocks ethereum проблемы kran bitcoin
protocol bitcoin bitcoin reddit system bitcoin рост bitcoin bitcoin 99 monero ico
