10 Things You Need To Know About Bitcoin #9: Network Effects | 027

Dan and Trent discuss the nature of digital networks and human nature.Episode #9: Network EffectsMetcalf’s Law: the value of digital networks equal to the square of number of users.  It is an exponential functionTechnology adoption curves.  Start slow then once they gain critical mass they grow rapidly.  Nature of S-curvesGradually, then suddenly.   Perfectly describe network effects.  Thankfully we are in the gradually phase of Bitcoin adoptionPace of technology adoption has accelerated in the digital ageCrossing the chasm.  Moving beyond the initial 10% from early innovators to mass adoption.  Social layer.  Humans have a herd mentalityBitcoin is money and money is simply a shared idea that something has valueBitcoin is the ultimate network effect.  We are only at ~1% real adoption globallyAnd 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 othersIts pure economic incentivesWhen Bitcoin becomes used more and more as a medium of exchange the network effects go parabolicBitcoin being purely digital and built on backs of internet, cellular and social media can scale infinitely to the worldToday’s song: Crossing the Rubicon by Bob Dylan