The Seven Network Effects of Bitcoin

in bitcoin •  11 months ago

Since this feed started Bitcoin has gained $3349.81 today. I'm sure if you have not purchased it you might be saying it's going to come down and crash, that could be true, I think many people have been saying that for years now.
One of the reasons Amazon has become a USD 530 Billion company is because it had a network effect, that effect was consumer adoption through reviews. This single effect placed Amazon in the lead ahead of all the rest.

Now lets look at Bitcoin, it has not one but seven network effects.

  1. Speculation resulting in digital wallets for safe keeping, this alone is an industry on it own.

  2. Merchant Adoption, B2B transactions taking place like Maersk and Microsoft EY working together to streamline product delivery to consumers.

  3. Consumer Adoption - people just using it amongst themselves, even if it may be just for illegal activities. The same case was true for the internet, people originally used the internet for porn, it was due to this industry that more advancements took place to improve it until it good enough for the mass population of Earth.

  4. Security - Bitcoin of cause is introducing an entirely new way for people to use the safest way to move information through Blockchain Technology

  5. Attracting the greatest minds of the day - Like America which was favoured amongst the greatest minds in the world because they were allowed to live the best lives that was available Bitcoin is having the same effect. It's becoming a bigger topic everyday, more and more people are talking about it.

  6. Financial Capital support - more and more investors are looking at providing the funding for Bitcoin's integration into society as a viable monetary investment.

  7. Bitcoin has the power to become the next world reserve settlement currency

Again Amazon only had one of these network effects.

I learned this about Bitcoin from Trace Mayer, Economist and Lawyer.

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