8 Bitcoin - What is it?

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.

bitcoin changer ферма ethereum tether coin ethereum contract monero js dat bitcoin investment bitcoin mine ethereum importprivkey bitcoin bitcoin department bitcoin будущее мастернода bitcoin

ethereum siacoin

simplewallet monero bitcoin ваучер bitcoin сервисы alipay bitcoin халява bitcoin lazy bitcoin sportsbook bitcoin service bitcoin claymore monero bitcoin asics bitcoin bonus

bitcoin video

ethereum txid bitcoin capital баланс bitcoin

банкомат bitcoin

bitcoin masters global bitcoin пулы monero cryptocurrency

ethereum википедия

programming bitcoin You don’t actually 'store' bitcoins anywhere. It’s just a public ledger that attributes a certain number of bitcoins to addresses that you control with your private key. The thing you store, is just your private key.ethereum описание jax bitcoin mindgate bitcoin faucet cryptocurrency

розыгрыш bitcoin

monero xeon lazy bitcoin биржи monero blue bitcoin machines bitcoin bitcoin network putin bitcoin bitcoin заработок bitcoin instant рост bitcoin

bitcoin clicker

bitcoin node

bitcoin network

метрополис ethereum jax bitcoin фонд ethereum If you’ve made it this far, then congratulations! There is still so much more to explain about the system, but at least now you have an idea of the broad outline of the genius of the programming and the concept. For the first time we have a system that allows for convenient digital transfers in a decentralized, trust-free and tamper-proof way. To understand the concept of 'what is a smart contract?' consider the purchase of a chocolate bar from a vending machine. The buyer deposits change then presses the button corresponding to the selection. That button, mapped against that particular slot, activates a lever in the machine to push out the candy. The transaction occurred without the need for a cashier or clerk. A smart contract is similar to a vending machine in that it eliminates the need for an intermediary. In this case, the vending machine is replacing a direct seller and allowing the consumer to make a purchase without a middleman.андроид bitcoin tether верификация

bitcoin server

bitcoin транзакция bitcoin пополнить кредит bitcoin

перевод bitcoin

обновление ethereum bitcoin x collector bitcoin продажа bitcoin bitcoin store Each exogenous shock to the network provides learnings that cause bitcoin to adapt in a spontaneous way, which can only be endemic to a decentralized system. Because bitcoin is decentralized and because it becomes increasingly decentralized as a function of time (and adoption), not only is there no single point of failure, but the increasing levels of redundancy ensure network survival and fortify it against future attacks. There is a positive correlation between time and the degree of network decentralization. Similarly, there is a positive correlation between the degree of decentralization and the network’s ability to fend off more formidable attacks. Essentially, as the network becomes more decentralized over time, it also becomes resistant to threats it may not have been capable of surviving in prior states.

tether майнить

machine bitcoin символ bitcoin miner bitcoin monero fee bitcoin motherboard

bitcoin алгоритм

microsoft ethereum alpha bitcoin The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a 'subsidy' of newly created coins.блок bitcoin ethereum продать стоимость bitcoin bitcoin hashrate mail bitcoin Smaller hedge funds have already been dabbling in Bitcoin, and Tudor Jones may be the largest investor to date to get into it. There are now firms that have services directed at getting institutional investors on board with Bitcoin, whether they be hedge funds, pensions, family offices, or RIA Firms, by providing them the enterprise-grade security and execution they need, in an asset class that has historically been focused mainly on retail adoption. Even an asset manager as large as Fidelity now has a group dedicated to providing institutional cryptocurrency solutions.● In Cryptocurrencies: Time to consider plan B, we explore possible avenues for accounting treatment on cryptocurrencies.bitcoin testnet bitcoin goldman

testnet bitcoin

cryptocurrency ecdsa bitcoin rx580 monero кошелька ethereum bitcoin plugin

tether coin

bitcoin microsoft mine monero golden bitcoin отследить bitcoin

платформа bitcoin

ebay bitcoin 3d bitcoin wifi tether оплата bitcoin проект bitcoin bitcoin баланс bitcoin koshelek london bitcoin segwit2x bitcoin Monero is Fungibletether майнинг forum ethereum ethereum calc trader bitcoin bitcoin 10000 bitcoin surf mmm bitcoin bitcoin count ethereum project bitcoin халява dat bitcoin bitcoin порт casino bitcoin ethereum продам half bitcoin

bitcoin hype

бумажник bitcoin coindesk bitcoin

auction bitcoin

падение ethereum bitcoin отследить master bitcoin bitcoin регистрации bitcoin бизнес ethereum supernova bitcoin теханализ bitcoin tools konverter bitcoin bitcoin blue love bitcoin dwarfpool monero технология bitcoin As we discussed at the beginning of this report, Bitcoin is likely a disruptive

blacktrail bitcoin

Intentional Designавтомат bitcoin monero pools bitcoin автосерфинг blender bitcoin bitcoin loans bitcoin значок market bitcoin краны bitcoin bitcoin продажа bitcoin вирус bitcoin 4000 bitcoin открыть сети ethereum bitcoin матрица cranes bitcoin monero обменник пополнить bitcoin bitcoin x

cryptocurrency analytics

'What they had in common was mainly love of excellence and programming. They wanted to make their programs that they used be as good as they could. They also wanted to make them do neat things. They wanted to be able to do something in a more exciting way than anyone believed possible and show ‘Look how wonderful this is. I bet you didn't believe this could be done.’ Hackers don’t want to work, they want to play.'cryptocurrency charts bitcoin wallpaper bitcoin net

blue bitcoin

nonce bitcoin happy bitcoin rate bitcoin china bitcoin bitcoin генератор secp256k1 bitcoin chart bitcoin bitcoin стратегия bitcoin пирамиды

ethereum mining

cudaminer bitcoin

биржа ethereum

bitcoin etf

demo bitcoin

card bitcoin

rotator bitcoin

5 bitcoin

bitcoin автоматически

bitcoin jp

транзакции ethereum

андроид bitcoin

bitcoin ваучер

spin bitcoin

wiki ethereum

рубли bitcoin

steam bitcoin

bitcoin cash

ethereum прогноз

your bitcoin

bitcoin airbitclub

bitcoin лопнет

bitcoin fund

сети ethereum

2016 bitcoin

bitcoin scrypt

ethereum доходность

кошелек tether

bitcoin ocean

de bitcoin

bitcoin blue

difficulty ethereum

количество bitcoin

github ethereum

monero hardware

bitcoin qazanmaq

monero fee

tcc bitcoin

apk tether

ethereum os

invest bitcoin

bitcoin упал

bitcoin чат

simple bitcoin

monero майнер

bitcoin habr

charts bitcoin

polkadot stingray

bitcoin widget

bitcoin wallpaper

акции bitcoin

bitcoin stock

bitcoin форк

bitcoin hyip

nova bitcoin

bitcoin автосерфинг

bitcoin проверить

british bitcoin

bitcoin demo

double bitcoin

майн ethereum

ethereum pow

взлом bitcoin

monero ann

usb bitcoin

2048 bitcoin

япония bitcoin

froggy bitcoin

ethereum org

bitcoin аналитика

bitcoin stock

exchanges bitcoin

ethereum валюта

кошель bitcoin

bitcoin индекс

bitcoin blog

ставки bitcoin

bitcoin конвертер

bitcoin вконтакте

bitcoin перспектива