10 Things You Need To Know About Bitcoin #9: Network Effects | 027
"Two ways," he said. "Gradually, then suddenly."
One Way Ratchet · Trent Nutting, Dan Felger
December 5, 202336m 32s
Audio is streamed directly from the publisher (cdn.simplecast.com) as published in their RSS feed. Play Podcasts does not host this file. Rights-holders can request removal through the copyright & takedown page.
Show Notes
Dan and Trent discuss the nature of digital networks and human nature.
Episode #9: Network Effects
- Metcalf’s Law: the value of digital networks equal to the square of number of users. It is an exponential function
- Technology adoption curves. Start slow then once they gain critical mass they grow rapidly. Nature of S-curves
- Gradually, then suddenly. Perfectly describe network effects. Thankfully we are in the gradually phase of Bitcoin adoption
- Pace of technology adoption has accelerated in the digital age
- Crossing the chasm. Moving beyond the initial 10% from early innovators to mass adoption. Social layer. Humans have a herd mentality
- Bitcoin is money and money is simply a shared idea that something has value
- Bitcoin is the ultimate network effect. We are only at ~1% real adoption globally
- And unlike all other technologies, you received no economic benefit by being an early adopter.
- But Bitcoin incentives early adoption with massive returns to the people who join sooner that others
- Its pure economic incentives
- When Bitcoin becomes used more and more as a medium of exchange the network effects go parabolic
- Bitcoin being purely digital and built on backs of internet, cellular and social media can scale infinitely to the world
- Today’s song: Crossing the Rubicon by Bob Dylan
Topics
bitcoin