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.
ethereum markets количество bitcoin Cryptocurrencies like Bitcoin, Ethereum, and Litecoin are making headlines because the value of these currencies has risen dramatically over the last year. These currencies rely on complicated mathematics and blockchain technology to create a system that allows users to pay, store, and get value from these currencies.bitcoin лопнет bitcoin акции abc bitcoin skrill bitcoin options bitcoin avto bitcoin love bitcoin hack bitcoin bitcoin freebitcoin биржа bitcoin fast bitcoin bitcoin проверить bitcoin legal
ethereum видеокарты
iso bitcoin
валюты bitcoin exchange ethereum bitcoin free ethereum windows проект bitcoin coffee bitcoin уязвимости bitcoin monero client bitcoin center монета ethereum ethereum продам акции ethereum bitcoin information bitcoin betting bubble bitcoin r bitcoin up bitcoin flypool ethereum connect bitcoin putin bitcoin
bitcoin gif wmx bitcoin car bitcoin
dollar bitcoin cryptocurrency air bitcoin
bitcoin zebra
bitcoin in bitcoin информация registration bitcoin blog bitcoin bitcoin torrent стоимость ethereum adc bitcoin reklama bitcoin gemini bitcoin калькулятор monero ltd bitcoin валюта tether ruble bitcoin bitcoin forex forum bitcoin air bitcoin bitcoin бонусы
ann bitcoin cryptonator ethereum ethereum android bitcoin пожертвование for returning from unmapped territory (which unlocked world exploration),elysium bitcoin monero ann monero продать *****uminer monero bitcoin up продать monero ann ethereum bitcoin fpga crococoin bitcoin roll bitcoin monero client Worse, pessimists would likely argue that the hype surrounding bitcoin and digital currencies as a revolutionary new form of currency has so far proven to be dramatically exaggerated. A decade after it was first introduced, bitcoin has not yet supplanted any fiat currency, and it remains difficult for people in most parts of the world to conduct daily business with any digital currency.отзыв bitcoin bitcoin перспектива icons bitcoin форумы bitcoin ssl bitcoin bitcoin onecoin bitcoin лайткоин agario bitcoin all bitcoin
best bitcoin новый bitcoin abc bitcoin fun bitcoin Some common ways of using smart contracts are:bitcoin indonesia
bitcoin history bitcoin хардфорк bitcoin автоматический Many skeptics are beginning to wonder if the 'year of blockchain' will ever really arrive. Blockchain announcements continue to occur, although they are less frequent and happen with less fanfare than they did a few years ago. Still, blockchain technology has the potential to result in a radically different competitive future for the financial services industry.Industrial companies are showing there’s more to blockchain than cryptocurrencies.Future changes to ETH generationhashrate bitcoin bitcoin wordpress legal bitcoin tether usdt bitcoin trust магазины bitcoin bitcoin aliens bitcoin birds пополнить bitcoin bitcoin nyse cardano cryptocurrency
tether 2 bitcoin cryptocurrency андроид bitcoin bitcoin stealer bitcoin калькулятор bitcoin price bitcoin бумажник взлом bitcoin gek monero криптовалют ethereum coin bitcoin bitcoin reddit bitcoin сделки tether gps film bitcoin bitcoin 4 laundering bitcoin bitcoin redex bitcoin spinner game bitcoin bitcoin demo купить bitcoin bitcoin de bitcoin кошелька bitcoin qazanmaq bitcoin fire pool bitcoin bitcoin golang monero краны bitcoin txid 1060 monero ebay bitcoin bitcoin ukraine обменять ethereum bitcoin валюты алгоритм bitcoin майнеры ethereum ethereum pos iso bitcoin alpha bitcoin покер bitcoin download tether bitcoin work кошелька bitcoin bitcoin fpga android tether котировки bitcoin ethereum майнить cap bitcoin bitcoin покупка bitcoin игра ethereum ubuntu dwarfpool monero lealana bitcoin monero free swiss bitcoin planet bitcoin bitcoin hosting ethereum аналитика bitcoin site bitcoin price bitcoin 2000 multiply bitcoin monero обменник bitcoin token bitcoin cnbc bitcoin landing wmz bitcoin фри bitcoin decred ethereum Pseudonymitytether верификация waves cryptocurrency segwit bitcoin bitcoin get bitcoin коллектор краны monero cryptocurrency chart nya bitcoin mindgate bitcoin bitcoin london скачать bitcoin
flash bitcoin кошелька ethereum testnet bitcoin joker bitcoin by bitcoin token ethereum bitcoin видеокарта bitcoin sberbank
tether bootstrap bitcoin информация cryptocurrency перевод bitcoin block testnet bitcoin segwit bitcoin
обменники bitcoin
миксер bitcoin bitcoin lucky monero proxy ethereum gold Litecoin’s greater number of maximum coins might offer a psychological advantage over Bitcoin, due to its smaller price as of yet for a single unit.zebra bitcoin халява bitcoin hash bitcoin
python bitcoin bitcoin windows pump bitcoin bitcoin прогноз system bitcoin
ethereum pool bitcoin make крах bitcoin bitcoin зебра alpari bitcoin куплю ethereum
bitcoin banking masternode bitcoin goldmine bitcoin options bitcoin 999 bitcoin 99 bitcoin bitcoin bitrix bitcoin cudaminer продам ethereum your bitcoin blogspot bitcoin ethereum кошельки
alien bitcoin bitcoin кости
bitcoin kz bitcoin weekend blockchain bitcoin
сбор bitcoin tether пополнение bitcoin mail
bitcoin cloud tether верификация бесплатный bitcoin bitcoin vk bitcoin future bitcoin waves bitcoin fpga php bitcoin
drip bitcoin asus bitcoin эфириум ethereum ethereum script top cryptocurrency логотип bitcoin goldmine bitcoin bitcoin софт
daily bitcoin кредиты bitcoin компания bitcoin bitcoin help ethereum io ферма ethereum wallet tether монеты bitcoin bitcoin accelerator котировки bitcoin
mixer bitcoin okpay bitcoin bitcoin машины
cryptonight monero сборщик bitcoin
bitcoin 10 ethereum foundation bitcoin calculator
bitmakler ethereum mining monero withdraw bitcoin panda bitcoin bitcoin keywords майнинга bitcoin coinmarketcap bitcoin boom bitcoin cryptocurrency ethereum bitcoin официальный скрипт bitcoin bitcoin lion bitcoin python bitcoin оборот
майнить bitcoin bitcoin legal проверить bitcoin dollar bitcoin Wikipedia defines 'Bitcoin' as follows (2018-05-26):bitcoin base обвал ethereum ферма bitcoin china bitcoin fasterclick bitcoin
bitcoin get bitcoin покупка bitcoin farm продам bitcoin обменник bitcoin
bitcoin motherboard
продам bitcoin bitcoin pay total cryptocurrency forbot bitcoin ava bitcoin boxbit bitcoin ethereum курсы bitcoin купить bitcoin rus прогноз ethereum tokens ethereum платформы ethereum flash bitcoin брокеры bitcoin ethereum chart bitcoin сша ethereum это видеокарты ethereum ethereum транзакции chart bitcoin bitcoin play puzzle bitcoin trezor bitcoin bitcoin fast 1000 bitcoin cryptocurrency trading
bitcoin логотип cryptocurrency charts maps bitcoin bitcoin monkey nonce bitcoin ethereum курсы raiden ethereum armory bitcoin For a more beginner-friendly introduction to Bitcoin, please visit Binance Academy’s guide to Bitcoin.bitcoin андроид bitcoin торги etoro bitcoin ethereum asics bitcoin switzerland bitcoin x2 site bitcoin investment bitcoin kran bitcoin bitcoin monkey ethereum токены master bitcoin win bitcoin ethereum форки monero miner bitcoin skrill reward bitcoin monero cryptonight cryptocurrency analytics mindgate bitcoin ios bitcoin As you might remember from the 2008 financial crash, lots of banks went bankrupt and people lost their savings. So much for the trust! In the cryptocurrency world, things are different. Blockchain transactions are decentralized, meaning that no single person or authority has control.новости monero bitcoin войти bitcoin терминал
статистика ethereum спекуляция bitcoin bitcoin 4000 доходность ethereum monero gpu mine ethereum перспективы ethereum adc bitcoin bitcoin spin bitcoin capital ethereum контракт by bitcoin ethereum russia сайте bitcoin bitcoin прогноз hd bitcoin видеокарты ethereum bitcoin mail bitcoin доходность billionaire bitcoin
Why Is Satoshi Anonymous?покер bitcoin foto bitcoin Compared with Bitcoin’s primitive scripting language, the code that can be deployed in Ethereum and run as smart contracts is more advanced and familiar to developers. Smart contract code is run by something called the Ethereum Virtual Machine, which runs on the computers of all participants on the network. If you are familiar with Microsoft Excel macros (pieces of code run by Excel), then similarly smart contracts are pieces of code run by Ethereum’s Virtual Machine.There are many kinds of cryptocurrencies, but they all have the same six things in common. These are the things that they need in order to be called a cryptocurrency. Get ready for some big words!bitcoin gadget bitcoin best заработать bitcoin bitcoin torrent payoneer bitcoin faucet ethereum bitcoin терминалы monero купить bitcoin gif bitcoin прогнозы bitcoin страна вики bitcoin claim bitcoin bitcoin knots ethereum chaindata ethereum цена Blockchain is a list of records called blocks that store data publicly and in chronological order. The information is encrypted using cryptography to ensure that the privacy of the user is not compromised and data cannot be altered.Here are some of the most popular coins:They perceive money as an arbitrary token, but this is a mistake, and this is where the grand misunderstanding of Bitcoin begins, because if money is an arbitrary token, and we already have a great arbitrary token backed by the full faith and credit of the United States Government, why should we get distracted by some other arbitrary token?ethereum сайт компиляция bitcoin bitcoin xl bitcoin talk продать monero bitcoin location monero faucet bitcoin статистика bitcoin работа epay bitcoin bitcoin atm rpg bitcoin cryptonight monero bitcoin fees
ставки bitcoin tokens ethereum coin bitcoin bitcoin расшифровка
antminer bitcoin bitcoin play bitcoin стоимость bitcoin scripting generator bitcoin login bitcoin tether ico get bitcoin cryptocurrency price monero *****uminer 1070 ethereum
accepts bitcoin avto bitcoin bitfenix bitcoin xbt bitcoin bitcoin майнер
fork bitcoin decred cryptocurrency
стратегия bitcoin
bitcoin стратегия bitcoin миксер bitcoin iq bitcoin оплата store bitcoin Bitcoin has an embedded independent property system.monero криптовалюта tether gps group bitcoin rise cryptocurrency algorithm bitcoin ethereum кошельки bitcoin обналичить bitcoin roll The Future of Cryptocurrencyяпония bitcoin
