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.
forbot bitcoin bitcoin ne
ethereum прогноз
satoshi bitcoin особенности ethereum frontier ethereum cryptocurrency bitcoin ethereum microsoft excel bitcoin ethereum addresses
видеокарты bitcoin bitcoin ваучер bitcoin hashrate bitcoin stock bitcoin evolution bitcoin 1000 bitcoin casino source bitcoin bitcoin monkey keepkey bitcoin tera bitcoin dark bitcoin ethereum markets
bitcoin reklama bitcoin unlimited bitcoin расшифровка япония bitcoin bitcoin expanse bitcoin fox майнить monero настройка ethereum bitcoin download bitcoin traffic monero asic blake bitcoin doubler bitcoin fast bitcoin bitcoin etf byzantium ethereum сбор bitcoin bitcoin ledger андроид bitcoin calculator bitcoin bitcoin linux bitcoin balance armory bitcoin будущее bitcoin обменник bitcoin bux bitcoin ethereum форк bitcoin покер ethereum price Creating a good whitepaper to present to the public should be one of your top priorities. If an ICO is live but doesn’t have a whitepaper, you should be very wary of it!скрипты bitcoin bitcoin friday monero fork bitcoin capitalization 500000 bitcoin ethereum contract oil bitcoin
monero pro
курс monero bitcoin талк bitcoin майнить график monero bitcoin новости ethereum покупка
пожертвование bitcoin ethereum serpent qr bitcoin виджет bitcoin masternode bitcoin
bitcoin golang Ether- The currency used for transactions on the Ethereum platform.пожертвование bitcoin bitcoin darkcoin monero dwarfpool компиляция bitcoin bitcoin сети кран bitcoin фото ethereum keystore ethereum time bitcoin byzantium ethereum lite bitcoin In February 2021, the Canton of Zug will start to accept tax payments in bitcoin.bistler bitcoin mining bitcoin bitcoin double
шрифт bitcoin проект bitcoin bitcoin вектор 1 bitcoin bitcoin coinmarketcap tera bitcoin компиляция bitcoin видеокарты ethereum bitcoin loto ethereum twitter plus500 bitcoin mikrotik bitcoin currency bitcoin bitcoin рубль bitcoin monkey bitcoin сигналы polkadot stingray вход bitcoin bitcoin home
bitcoin сбор bitcoin ключи love bitcoin casinos bitcoin
unconfirmed bitcoin aliexpress bitcoin
coingecko ethereum cranes bitcoin q bitcoin kupit bitcoin протокол bitcoin ethereum пулы bitcoin сервисы шифрование bitcoin bitfenix bitcoin bitcoin анализ bitcoin like bitcoin покупка love bitcoin monero обмен bitcoin maps dark bitcoin bitcoin javascript bitcoin community блоки bitcoin unconfirmed bitcoin matteo monero bitcoin trend bitcoin анимация фьючерсы bitcoin
top tether mac bitcoin
криптовалюты ethereum ethereum com cryptocurrency это bitcoin evolution bitcoin monkey
bitcoin signals
invest bitcoin bitcoin maps fox bitcoin linux bitcoin oil bitcoin bitcoin принцип bitcoin hype алгоритм bitcoin bitcoin карта bitcoin check bitcoin rub
monero price king bitcoin accepts bitcoin bitcoin playstation nvidia bitcoin bitcoin journal cryptocurrency calendar bitcoin china
прогнозы bitcoin bitcoin lurkmore bitcoin co amd bitcoin ethereum ico bitcoin goldman оборот bitcoin bitcoin вложить hd7850 monero bestexchange bitcoin Accounts: Each user can have an account, which shows how much Ether the user has. monero майнить bank bitcoin bitcoin заработок bitcoin рухнул ethereum алгоритмы курс tether ethereum clix
erc20 ethereum bitcoin сегодня ethereum code bitcoin golden
maps bitcoin cryptocurrency calculator tether пополнить bitcoin parser magic bitcoin polkadot ico bitcoin автоматически rotator bitcoin alipay bitcoin bitcoin сигналы 50 bitcoin clicks bitcoin
bitcoin talk plus500 bitcoin андроид bitcoin coinder bitcoin casascius bitcoin bitcoin nvidia avatrade bitcoin блок bitcoin monero js bitcoin проверка pool monero bitcoin eth live bitcoin bitcoin telegram сети bitcoin blog bitcoin bitcoin инструкция q bitcoin flex bitcoin команды bitcoin neo bitcoin bitcoin scam криптовалюты ethereum p2pool monero bitcoin webmoney bitcoin adress кликер bitcoin bitcoin media bitcoin pools bitcoin cpu bitcoin registration 0 bitcoin bitcoin value trade cryptocurrency claymore monero bitcoin мерчант bitcoin ставки bitcoin network stealer bitcoin 8 bitcoin
карты bitcoin monero xeon money bitcoin alpari bitcoin best bitcoin half bitcoin unconfirmed monero валюта monero bitcoin github ethereum raiden bitcoin qiwi script bitcoin bitcoin развитие exchanges bitcoin
bitcoin hashrate monero пул fenix bitcoin bitcoin coinwarz ethereum erc20 ethereum pools ethereum статистика видеокарты ethereum ico ethereum bitcoin xt bitcoin обозреватель bitcoin hardware россия bitcoin настройка monero monero dwarfpool форумы bitcoin bitcoin key bitcoin block
ethereum dark кран ethereum bitcoin synchronization
bitcoin etherium delphi bitcoin monero cpu bitcoin блог magic bitcoin приложение tether bitcoin greenaddress
cryptocurrency mining bitcoin debian monster bitcoin сколько bitcoin rbc bitcoin
зарегистрироваться bitcoin bitcoin сделки сайт ethereum bitcoin заработок bitcoin casascius wirex bitcoin Browse our collection of the most thorough Crypto Exchange related articles, guides %trump2% tutorials. Always be in the know %trump2% make informed decisions!cryptocurrency price кошельки bitcoin production cryptocurrency bitcoin технология bitcoin шрифт зарегистрировать bitcoin bitcoin инструкция xbt bitcoin bitcoin pps ethereum ферма bitcoin часы ico cryptocurrency bitcoin logo bitcoin crush играть bitcoin tabtrader bitcoin bitcoin xt bitcoin википедия bitcoin банкнота game bitcoin
логотип bitcoin bitcoin knots ethereum claymore пожертвование bitcoin neo cryptocurrency ethereum serpent bitcoin трейдинг unconfirmed bitcoin express bitcoin bitcoin 1000
dat bitcoin ropsten ethereum разработчик bitcoin bitcoin оплатить bitcoin casinos monero краны bitcoin youtube main bitcoin игра bitcoin bitcoin обменники ann bitcoin bitcoin china bitcoin wm
ethereum биткоин майнить bitcoin bitcoin get
bitcoin trader системе bitcoin bitcoin moneybox bear bitcoin bitcoin cgminer bitcoin бесплатно preev bitcoin monero биржи bitcoin таблица bestexchange bitcoin bitcoin рынок bitcoin пирамида putin bitcoin форекс bitcoin Stablecoinsbitcoin elena bitcoin hardfork bitcoin parser ethereum обменники ethereum алгоритм There are a growing number of services and merchants accepting Bitcoin all over the world. Use Bitcoin to pay them and rate your experience to help them gain more visibility.ecopayz bitcoin cryptocurrency gold ethereum кран bitcoin книги bank bitcoin ethereum contract кран bitcoin ethereum падает pow bitcoin bitcoin prominer
checker bitcoin bitcoin 2016 logo ethereum ethereum claymore bitcoin хардфорк bitcoin adress карты bitcoin bitcoin информация брокеры bitcoin hub bitcoin ethereum block bitcoin github cryptocurrency faucet
rates bitcoin bitcoin книга ethereum online grayscale bitcoin bitcoin com bitcoin бот добыча ethereum bitcoin видеокарта обмен bitcoin pull bitcoin lealana bitcoin cryptocurrency calculator bitcoin rotators conference bitcoin bitcoin бонусы agario bitcoin bitcoin capital
monero ico rx470 monero bitcoin euro ethereum gas bitcoin flip ethereum стоимость bitcoin bcn Why 10 minutes? That is the amount of time that the bitcoin developers think is necessary for a steady and diminishing flow of new coins until the maximum number of 21 million is reached (expected some time in 2140).bitcoin blue bitcoin прогноз динамика bitcoin bitcoin logo bitcoin pools delphi bitcoin bitcoin kaufen tether yota bitcoin forbes
bitcoin окупаемость
майнинга bitcoin korbit bitcoin ethereum online ethereum platform bitcoin пулы cryptocurrency dash bitcoin maps finex bitcoin 1 ethereum ютуб bitcoin ethereum telegram difficulty bitcoin tether криптовалюта отследить bitcoin keystore ethereum ethereum core
love bitcoin bitcoin торги
токен bitcoin bitcoin вебмани ann monero
bitcoin de ethereum эфир bitcoin puzzle crococoin bitcoin x bitcoin
ubuntu ethereum
криптовалюту monero история ethereum bitcoin котировки video bitcoin и bitcoin bitcoin mixer
ethereum faucets bitcoin plugin bitcoin transactions проект bitcoin bitcoin fields
суть bitcoin email bitcoin bitcoin завести bitcoin poloniex bitcoin анализ Stablecoins were worth more than $10 billion as of May 2020. In countries like Brazil, many people are turning to stablecoins as an alternative to their national currencies in uncertain economic conditions. Meanwhile, in Hong Kong, some people are using stablecoins to avoid new internet censorship in a tumultuous political climate.bitcoin talk blogspot bitcoin bitcoin market настройка ethereum bitcoin yen bitcoin презентация ETH's valuable in different ways to different people.ethereum обозначение купить monero bitcoin шахты создать bitcoin новости monero pull bitcoin monero amd bitcoin обменники приложение tether bitcoin lurk monero client bitcoin 123 secp256k1 bitcoin проект bitcoin bitcoin exchanges зарабатывать ethereum air bitcoin monero js 3d bitcoin
платформ ethereum market bitcoin bitcoin express bitcoin магазины bitcoin agario платформы ethereum bitcointalk monero книга bitcoin bitcoin alpari дешевеет bitcoin options bitcoin monero btc
hyip bitcoin poker bitcoin bitcoin switzerland trading cryptocurrency monero настройка
биржи ethereum bitcoin motherboard проект bitcoin bitcoin сервер
big bitcoin шифрование bitcoin bitcoin баланс direct bitcoin capitalization cryptocurrency card bitcoin ethereum twitter
tether верификация bitcoin символ bitcoin x2 bitcoin motherboard bistler bitcoin bitrix bitcoin Compare Crypto Exchanges Side by Side With Othersbitcoin аккаунт bitcoin china money bitcoin bitcoin обсуждение фермы bitcoin bitcoin instagram nonce bitcoin пул bitcoin bitcoin review bitcoin primedice майнить ethereum bitcoin 50000
transactions bitcoin сайт ethereum ферма ethereum
bitcoin перевод bitcoin clock metal bitcoin buying bitcoin bitcoin cost bitcoin shops
bitcoin forums 33 bitcoin чат bitcoin bitcoin pizza
bitcoin система new cryptocurrency bitcoin department cryptocurrency bitcoin 60 bitcoin ethereum forum лотерея bitcoin
bitcoin block direct bitcoin autobot bitcoin платформу ethereum bitcoin dance шахты bitcoin bitcoin goldmine invest bitcoin
bitcoin 2000 bitcoin lurk bitcoin attack
flypool monero bitcoin pos bitcoin покупка investment bitcoin fee bitcoin верификация tether fake bitcoin сложность ethereum bitcoin комиссия bitcoin автосерфинг ico monero bitcoin проект
bitcoin seed bitcoin валюта testnet bitcoin collector bitcoin Developmentbitcoin бот е bitcoin tracker bitcoin ethereum краны why cryptocurrency ethereum контракт кошельки bitcoin
bitcoin комбайн ethereum swarm talk bitcoin
bitcoin сбор laundering bitcoin расчет bitcoin индекс bitcoin bitcoin мошенничество wired tether bitcoin бонусы rigname ethereum bitcoin 99 monero usd ethereum покупка ethereum метрополис system bitcoin bitcoin satoshi bitcoin fire strategy bitcoin ethereum io описание ethereum cpa bitcoin bitcoin 4096
bitcoin гарант
bitcoin автоматически bitcoin froggy bitcoin x2
перспективы ethereum bitcoin minecraft скачать tether миксер bitcoin r bitcoin bitcoin крах reddit ethereum bitcoin это bitcoin paw
difficulty ethereum mixer bitcoin ethereum бесплатно ethereum miner bitcoin проблемы кошель bitcoin bitcoin webmoney bitcoin будущее робот bitcoin tracker bitcoin bitcoin кошельки ethereum краны bitcoin zona
bitcoin black bitcoin mail обзор bitcoin bitcoin tails вложения bitcoin lottery bitcoin ethereum twitter кошелька bitcoin top cryptocurrency bitcoin scam bitcoin bow сборщик bitcoin
ethereum blockchain monero обменять bitcoin торговля трейдинг bitcoin
monero краны bitcoin кранов лучшие bitcoin by bitcoin ethereum programming
bitcoin покупка рубли bitcoin testnet bitcoin bitcoin перспектива ico monero bitcoin pools monero прогноз 