The Seven Network Effects of Bitcoin
Trace outlines 7 types of network effects that occur in the Bitcoin ecosystem:
- Speculation
- Merchant Adoption
- Consumer Adoption
- Security
- Developer Mindshare
- Financialization
- Adoption as a World Reserve Currency
EXCERPT
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.
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