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.
2015bitcoin минфин mine ethereum bitcoin demo bitcoin crane monero gpu all cryptocurrency cranes bitcoin rotator bitcoin дешевеет bitcoin bitcoin half ethereum проекты
gadget bitcoin
bitcoin play miner bitcoin php bitcoin ethereum network monero cryptonote
bitcoin fasttech capitalization bitcoin
продам ethereum fasterclick bitcoin miner monero bus bitcoin bitcoin ферма bitcoin status tracker bitcoin bitcoin bounty bitcoin tm black bitcoin tether пополнить ethereum blockchain сервер bitcoin bitcoin валюта bitcoin trade количество bitcoin сбербанк bitcoin bitcoin slots bitcoin analysis bitcoin click bitcoin slots bitcoin биткоин
bitcoin map china cryptocurrency разработчик ethereum spend bitcoin
bitcoin split bitcoin habrahabr bitcoin брокеры download tether bitcoin chart bitcoin что mikrotik bitcoin alpari bitcoin куплю ethereum bitcoin galaxy bitcoin автоматически bitcoin openssl ethereum википедия bitcoin blog ethereum dark bitcoin bcc
bitcoin neteller bitcoin торговля putin bitcoin bitcoin kazanma ethereum install bitcoin utopia бонусы bitcoin ethereum miner эмиссия ethereum dag ethereum ann bitcoin 4pda bitcoin bitcoin россия кошель bitcoin
bitcoin продать bitcoin alpari monero майнинг bitcoin anonymous monero btc bitcoin blue xmr monero серфинг bitcoin bitcoin usb bitcoin tor bitcoin xapo the ethereum bitcoin портал
ethereum биткоин bitcoin книга bitcoin in The genius of Bitcoin, in inventing a digital currency successful in the real world, is not in creating any new abstruse mathematics or cryptographic breakthrough, but in putting together decades-old pieces in a semi-novel but extremely unpopular way. Everything Bitcoin needed was available for many years, including the key ideas.работа bitcoin monero blockchain ethereum проблемы окупаемость bitcoin connect bitcoin bitcoin обменник выводить bitcoin курс ethereum конвертер bitcoin ethereum описание кошелек bitcoin doge bitcoin cryptocurrency calendar monero ico
ethereum fork bitcoin win bitcoin лопнет обменники ethereum sgminer monero coin bitcoin rx560 monero конвектор bitcoin bitcoin список ротатор bitcoin компиляция bitcoin блок bitcoin nanopool ethereum Any backup that is stored online is highly vulnerable to theft. Even a computer that is connected to the Internet is vulnerable to malicious software. As such, encrypting any backup that is exposed to the network is a good security practice.pro100business bitcoin lurkmore bitcoin bitcoin qiwi monero miner пулы ethereum What is Cryptocurrency?bitcoin heist bitcoin обменять bitcoin hd валюта tether
bitcoin андроид приват24 bitcoin bitcoin london bitcoin greenaddress bitcoin etherium
gold cryptocurrency сайт ethereum rocket bitcoin ethereum swarm ava bitcoin bitcoin nvidia bitcoin purse bitcoin окупаемость vip bitcoin cnbc bitcoin
1 monero видеокарты bitcoin Bitcoin spin-off currencies such as Bitcoin Cash (BCash) and Bitcoin Gold can get a lot of buzz online and their prices can appear impressive but it's unclear if they will have any true lasting power due to the growing perception of these coins as cheap imitations of the main Bitcoin blockchain.bitcoin баланс bitcoin вконтакте bitcoin plus ethereum аналитика bitcoin книги tether usd bitcoin central trading bitcoin bitcoin уязвимости bistler bitcoin ethereum видеокарты mmgp bitcoin bitcoin проблемы bitcoin продам
loan bitcoin bitcoin pizza платформ ethereum bitcoin игры bitcoin 4000 bitcoin шахта addnode bitcoin casper ethereum bitcoin cracker 3 bitcoin bitcoin список mining bitcoin
by bitcoin капитализация bitcoin raiden ethereum
micro bitcoin bitcoin баланс bitcoin reklama monero форк minergate ethereum кошелька ethereum rpg bitcoin location bitcoin maps bitcoin bank cryptocurrency bitcoin халява bitcoin skrill проверка bitcoin bitcoin server ethereum сайт
bitcoin приложения bitcoin подтверждение pool bitcoin
bitcoin symbol iso bitcoin bitcoin maining пул monero bitcoin miner 1 ethereum bitcoin grant майн ethereum банк bitcoin bitcoin safe новости monero bitcoin технология bitcoin knots bitcoin 15 сайте bitcoin bitcoin википедия bitcoin valet moto bitcoin algorithm ethereum tinkoff bitcoin
bitcoin friday hosting bitcoin ethereum логотип blue bitcoin space bitcoin bitcoin криптовалюта magic bitcoin ethereum asics история ethereum magic bitcoin создатель bitcoin bitcoin компьютер trade cryptocurrency
bitcoin работа bitcoin упал ethereum pools bitcoin testnet proxy bitcoin bitcoin ads ethereum debian ethereum акции bitcoin advcash best bitcoin bitcoin обзор testnet ethereum konvert bitcoin
сбербанк ethereum bitcoin игры bitcoin отзывы Coinality features jobs – freelance, part-time and full-time – that offer payment in bitcoins, as well as other cryptocurrencies like Dogecoin and Litecoinbitcoin china bitcoin get You’ve no doubt been waiting very patiently to find out one thing: is there a chance you’ll actually win some bitcoins?cryptocurrency market You can get Bitcoin by accepting it as a payment for goods and services. There are also several ways you can buy Bitcoin.Acceptance by merchantsвиджет bitcoin bitcoin wmx q bitcoin bitcoin стоимость tether обмен bitcoin обвал bitcoin markets nanopool ethereum withdraw bitcoin кошельки bitcoin bitcoin changer bitcoin greenaddress bitcoin играть кости bitcoin all cryptocurrency компания bitcoin roll bitcoin clame bitcoin difficulty monero майнить monero bitcoin account порт bitcoin
ethereum io оплатить bitcoin bitcoin legal cryptocurrency exchanges ethereum регистрация bitcoin книги demo bitcoin ethereum график bitcoin торрент neo cryptocurrency ethereum siacoin wallet cryptocurrency брокеры bitcoin bitcoin 2018
сбербанк bitcoin bitcoin котировки bitcoin сколько валюта monero аналоги bitcoin xbt bitcoin monero rub faucet ethereum bitcoin invest Ethereum-based smart contracts may be used to create digital tokens for performing transactions. You may design and issue your own digital currency, creating a tradable computerized token. The tokens use a standard coin API. In the case of Ethereum, there are standardizations of ERC 2.0, allowing the contract to access any wallet for exchange automatically. As a result, you build a tradable token with a fixed supply. The platform becomes a central bank of sorts, issuing digital money.In a March 2014 article in Newsweek, journalist Leah McGrath Goodman doxed Dorian S. Nakamoto of Temple City, California, saying that Satoshi Nakamoto is the man's birth name. Her methods and conclusion drew widespread criticism.развод bitcoin Number of Miners: 2191Ways to Mine Moneroсмесители bitcoin bitcoin вложения bonus bitcoin jax bitcoin ethereum адрес space bitcoin live bitcoin bitcoin earning green bitcoin
bitcoin обозреватель monero simplewallet bitcoin asic bitcoin экспресс
locals bitcoin secp256k1 ethereum bitcoin center
сложность bitcoin bitcoin dice bitcoin математика ethereum web3 polkadot stingray символ bitcoin bitcoin отследить bitcoin usd visa bitcoin bitcoin таблица bitcoin server tether yota луна bitcoin space bitcoin ethereum supernova bitcoin example bitcoin film cryptocurrency calculator mastercard bitcoin trade cryptocurrency bitcoin скрипт bitcoin neteller bitcoin pools ad bitcoin bitcoin direct
bitcoin utopia bitcoin neteller ethereum курсы
armory bitcoin mikrotik bitcoin разделение ethereum ethereum developer bitcoin me ethereum serpent asrock bitcoin analysis bitcoin ethereum telegram bitcoin reserve ethereum видеокарты bitcoin bloomberg bitcoin trinity bitcoin nvidia лотерея bitcoin регистрация bitcoin
bitcoin bow график monero bitcoin school bitcoin автосерфинг bitcoin индекс lazy bitcoin programming bitcoin bitcoin вконтакте bitcoin ocean bitcoin machine bitcoin проект bitcoin оплатить bitcoin lottery бесплатные bitcoin ethereum кошельки bitcoin 20 blockchain ethereum bitcoin avalon Unlike regular currency, which exists in tangible form or is backed by something tangible like gold, cryptocurrency is purely digital money and exists solely in the internet. Additionally, cryptocurrency, also known as cryptocoin, is not backed or managed by an authorized third party like a bank or government.vector bitcoin
Block Reward:bitcoin login транзакции monero bitcoin вывести
bitcoin шахты ротатор bitcoin maining bitcoin tether 4pda total cryptocurrency bitcoin сервер bitcoin торговля bitcoin kazanma korbit bitcoin autobot bitcoin bitcoin купить ethereum forum bitcoin bat технология bitcoin
баланс bitcoin bitcoin crash monero ethereum testnet bitcoin 4 hyip bitcoin bitcoin прогнозы mac bitcoin bitcoin капитализация криптовалют ethereum wikipedia bitcoin основатель bitcoin reindex bitcoin
carding bitcoin bitcoin hunter bitcoin up Bitcoins are completely virtual coins designed to be self-contained for their value, with no need for banks to move and store the money. Once bitcoins are owned by a person, they behave like physical gold coins. They possess value and trade just as if they were nuggets of gold. Bitcoins can be used to purchase goods and services online with businesses that accept them or can be tucked away in the hope that their value increases over time.Risks of Forex w/Bitcoinbitcoin hunter bitcoin monkey мастернода bitcoin майнер monero bitcoin sportsbook баланс bitcoin titan bitcoin plus500 bitcoin buying bitcoin tether верификация установка bitcoin bitcoin block converter bitcoin
bitcoin forex bitcoin обучение монета ethereum ethereum картинки bag bitcoin top tether monero сложность ethereum twitter ethereum web3 word bitcoin bitcoin технология bitcoin paypal
