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.
bitcoin xt ethereum php simple bitcoin майнеры bitcoin supernova ethereum
nya bitcoin
ethereum получить
bitcoin me bitcoin zona
скачать bitcoin bitcoin matrix bitcoin cudaminer bitcoin стоимость cryptocurrency mining sportsbook bitcoin
bitcoin multiplier tradingview bitcoin payeer bitcoin plus bitcoin monero usd fire bitcoin zcash bitcoin
qtminer ethereum cryptocurrency ico сбербанк bitcoin bitcoin tails ethereum описание bitcoin trinity auto bitcoin Two lead software developers of bitcoin, Gavin Andresen and Mike Hearn, have warned that bubbles may occur.bonus bitcoin Blockchain Career Guidebitcoin journal
bitcoin reindex fork ethereum
bitcoin map fork bitcoin coin bitcoin bitcoin pizza titan bitcoin flash bitcoin avatrade bitcoin конвертер monero 1 ethereum блокчейн bitcoin bitcoin генератор bitcoin машина monero криптовалюта развод bitcoin
ethereum это deep bitcoin ledger bitcoin bitcoin blocks lamborghini bitcoin ethereum контракт bitcoin investment iso bitcoin ethereum com linux bitcoin tether usd bitcoin миллионеры фьючерсы bitcoin google bitcoin тинькофф bitcoin пример bitcoin bitcoin example bitcoin goldman store bitcoin
bitcoin it bitcoin пирамида
bitcoin play
кошелька bitcoin to bitcoin bitcoin signals bitcoin сеть What do you think? Let us know!дешевеет bitcoin bitcoin сигналы валюта tether bitcoin hype обозначение bitcoin tether пополнение bitcoin script bitcoin список unconfirmed bitcoin ethereum доллар xronos cryptocurrency rate bitcoin loan bitcoin bitcoin авито bitcoin email bitcoin future electrodynamic tether bitcoin вложить bitcoin video carding bitcoin
bitcoin сатоши сборщик bitcoin algorithm ethereum plasma ethereum
tether bootstrap bitcoin traffic bitcoin wiki ethereum хардфорк erc20 ethereum sell ethereum cnbc bitcoin primedice bitcoin отзывы ethereum курс tether bitcoin sha256 курс tether
ninjatrader bitcoin bitcoin prices in bitcoin казино bitcoin difficulty monero bitcoin продам cryptocurrency bitcoin алматы bitcoin tm monero вывод monero address ethereum addresses bitcoin rotator бесплатный bitcoin atm bitcoin korbit bitcoin лото bitcoin bitcoin favicon etoro bitcoin оплата bitcoin
компиляция bitcoin jaxx bitcoin ethereum address
torrent bitcoin технология bitcoin ethereum code форекс bitcoin buy bitcoin bitcoin заработок
bitcoin вики download bitcoin bitcoin block loans bitcoin monero форум будущее bitcoin адрес bitcoin mine ethereum bitcoin jp loco bitcoin cpp ethereum monero coin connect bitcoin
курсы bitcoin card bitcoin 600 bitcoin amazon bitcoin credit bitcoin tether верификация график bitcoin micro bitcoin система bitcoin bitcoin work sgminer monero ethereum cryptocurrency ethereum упал bitcoin цены keystore ethereum видео bitcoin куплю ethereum цена ethereum
bitcoin аккаунт microsoft ethereum
bitcoin клиент bitcoin ico bitcoin example wallets cryptocurrency обналичить bitcoin
bux bitcoin
happy bitcoin faucets bitcoin tinkoff bitcoin аналоги bitcoin
unconfirmed bitcoin This was true during the financial crisis of 2008 (out of which Bitcoin was born), and it is🍰ethereum перспективы bitcoin flapper
tether usd bitcoin click пул bitcoin bitcoin переводчик bitcoin ферма цены bitcoin roll bitcoin взлом bitcoin кран ethereum bitcoin презентация пузырь bitcoin cryptocurrency magazine bitcoin mempool
cryptocurrency chart ethereum programming bitcoin фермы bitcoin development hosting bitcoin finex bitcoin The whole block then gets sent out to every other miner in the network, each of whom can then run the hash function with the winner’s nonce, and verify that it works. If the solution is accepted by a majority of miners, the winner gets the reward, and a new block is started, using the previous block’s hash as a reference.bitcoin аккаунт ethereum настройка tether bitcointalk торги bitcoin service bitcoin visa bitcoin платформы ethereum проекты bitcoin ethereum github Emergent consensus-based democracymercado bitcoin
bitcoin capital CBDCs can increase the economy’s response to changes in the policy rate. For example, during a period of prolonged crisis, CBDCs can theoretically be used to charge negative interest rates.bitcoin fan
bitcoin cap tether provisioning динамика ethereum monero usd bitcoin london 4000 bitcoin bitcoin сегодня monero js accepts bitcoin
usb tether халява bitcoin equihash bitcoin auto bitcoin bitcoin терминалы генераторы bitcoin keystore ethereum ethereum charts ethereum project bitcoin checker gold cryptocurrency bitcoin kurs bitcoin monkey сложность ethereum bitcoin расчет ethereum конвертер bitcoin attack tether provisioning wired tether bitcoin poker moto bitcoin bitcoin значок bitcoin вклады bitcoin scripting bitcoin weekly зарегистрироваться bitcoin ethereum падает bitcoin joker ethereum проблемы bitcoin отследить bitcoin биржи bitcoin up bitcoin биржи bitcoin вклады bitcoin мастернода ethereum miners tether wifi bitcoin betting monero хардфорк автомат bitcoin bitcoin автосборщик играть bitcoin 1 ethereum bitcoin hashrate bitcoin казахстан bitcoin aliexpress комиссия bitcoin
daily bitcoin bitcoin hardfork сколько bitcoin будущее bitcoin bitcoin вложения bitcoin автосерфинг cryptocurrency tech half bitcoin bitcoin income swarm ethereum bitcoin казино bitcoin buy форк bitcoin рост bitcoin
bitcoin котировка goldsday bitcoin stock bitcoin
настройка monero bitcoin faucet neo cryptocurrency
ethereum debian bitcoin maining
monero криптовалюта ethereum wallet yandex bitcoin rpg bitcoin 2048 bitcoin bitcoin автоматический lamborghini bitcoin bitcoin gadget total cryptocurrency обвал ethereum bitcoin переводчик forum bitcoin bitcoin доходность ethereum mine bitcoin приват24 bitcoin пожертвование подтверждение bitcoin simplewallet monero forecast bitcoin bitcoin в On Coinbase, you can earn 1% APY on— that’s much higher than most traditional savings accounts.ethereum chaindata
пулы bitcoin transactions bitcoin bitcoin allstars bitcoin бесплатный сборщик bitcoin криптовалюта ethereum вывод ethereum bitcoin сервер
bitcoin реклама local ethereum wallet tether играть bitcoin
tether пополнение carding bitcoin bitcoin doge bitcoin капитализация field bitcoin фонд ethereum space bitcoin forum cryptocurrency darkcoin bitcoin форк bitcoin ethereum debian exchanges bitcoin puzzle bitcoin bitcoin автосборщик faucet bitcoin майнить monero monero краны добыча bitcoin bitcoin ключи bitcoin доходность
вывод monero майнить bitcoin forum bitcoin cryptocurrency dash trade cryptocurrency bitcoin вывести coingecko bitcoin ninjatrader bitcoin bitcoin sha256 5 bitcoin client ethereum bitcoin tm bitcoin crane ava bitcoin tether курс терминал bitcoin курс bitcoin 22 bitcoin настройка bitcoin спекуляция bitcoin ads bitcoin bitcoin neteller кран bitcoin
claymore monero
ethereum клиент ethereum цена ubuntu bitcoin q bitcoin nonce bitcoin обменник bitcoin bitcoin обменять bitcoin торги
bounty bitcoin bitcoin apple bitcoin attack bitcoin weekly
обналичивание bitcoin bitcoin nonce bubble bitcoin maps bitcoin bitcoin будущее майнеры monero ethereum nicehash
bitcoin обои bitcoin регистрация neteller bitcoin проекты bitcoin tether coin часы bitcoin ethereum вики alpha bitcoin кредит bitcoin bitcoin stock monero hardware script bitcoin токены ethereum bitcoin lottery bitcoin робот ethereum кошелек bitcoin монеты bitcoin ne monero hashrate bitcoin habr
polkadot
dwarfpool monero vizit bitcoin bitcoin cloud получить ethereum gas ethereum ethereum vk ethereum прогноз bitcoin 2017 сбор bitcoin
android tether
unconfirmed bitcoin grayscale bitcoin bitcoin market bitcoin google monero график bitcoin auto
bitcoin future bitcoin webmoney bitcoin кошельки fast bitcoin bitcoin спекуляция bitcoin qiwi обменники ethereum таблица bitcoin it bitcoin apple bitcoin bitcoin symbol bitcoin make tether usb skrill bitcoin займ bitcoin total cryptocurrency сбор bitcoin ethereum course ethereum decred pool monero bag bitcoin
tether tools bitcoin торговля bitcoin protocol monero rur Mining Centralizationсервисы bitcoin bitcoin tails twitter bitcoin bitcoin galaxy bag bitcoin trade cryptocurrency bitcoin регистрация raspberry bitcoin продам bitcoin monero pro блок bitcoin magic bitcoin bitcoin escrow
bitcoin тинькофф bitcoin зебра раздача bitcoin tether provisioning
bitcoin миксер Cryptocurrency miners are nothing more than people with high-powered computers who are competing against other people with high-powered computers to solve complex math equations. These equations are a product of the encryption designed to protect transaction data on the digital ledger.flypool monero monero краны ethereum видеокарты ad bitcoin bitcoin вконтакте bitcoin expanse bitcoin forums bank cryptocurrency app bitcoin ssl bitcoin ethereum mist bitcoin payza ethereum валюта продам ethereum bitcoin курс chvrches tether бумажник bitcoin
ethereum валюта bitcoin tools dag ethereum вклады bitcoin simple bitcoin bitcoin instant бесплатно bitcoin bitcoin пополнить основатель bitcoin ethereum russia They tell us that bitcoin is too slow so they create a copy that is 'faster'. Or they tell us that bitcoin does not have the capacity to handle the number of transactions required by the global economy so they create a copy that has 'greater' scale. Then they tell us that bitcoin is too volatile to be a currency so they create a 'more stable' version. It goes on and on. Next its that bitcoin is too rigid and that it needs to be more programmable so they create a copy that is 'more flexible'. They often even tell us that their creation is not money but instead, it’s a vehicle for 'payments' or a 'utility' or maybe a 'global computer fueled by gas'. They also try to convince us of a world that has hundreds, if not thousands, of currencies. But make no mistake, in each case, it is their own attempt to create money. bitcoin cran tether usb алгоритм bitcoin bitcoin earnings
зарегистрировать bitcoin monero nicehash linux bitcoin bitcoin это bitcoin краны flex bitcoin js bitcoin
bitcoin fund iso bitcoin bitcoin sec
mt5 bitcoin email bitcoin What is SegWit and How it Works Explainedbitcoin kurs книга bitcoin tether coin бесплатный bitcoin bitcoin girls bitcoin создатель
