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"What if Bitcoin is MySpace and something else is Facebook?"
No.
Both first & last movers advantage applies to BTC.
By being first, BTC has time to establish itself as the dominant last player. This advantage is imperative to create the network effects needed by sound money.
No.
Both first & last movers advantage applies to BTC.
By being first, BTC has time to establish itself as the dominant last player. This advantage is imperative to create the network effects needed by sound money.
Inherent network effects of BTC:
Price increases → More people mine → Stronger network security → People hold BTC b/c safer store of value → Collective increase in trust of BTC → Constrainment & redistribution of supply → Price increases & volatility reduces → Repeat
Price increases → More people mine → Stronger network security → People hold BTC b/c safer store of value → Collective increase in trust of BTC → Constrainment & redistribution of supply → Price increases & volatility reduces → Repeat
You'd be surprised by how many people in both finance & startups entering into crypto use this as their first argument against Bitcoin.
