1/🧵
People need to truly understand network effects. Metcalfe's Law (and more important Reed's Law) are crucial to the comprehension of the future. This is something that people on Hive need to internalize.
1/🧵
People need to truly understand network effects. Metcalfe's Law (and more important Reed's Law) are crucial to the comprehension of the future. This is something that people on Hive need to internalize.
2/ The valuation of networks like social media is known. This is what people often associate with the network effect. It is equally applicable to currency.
3/ Each layer that is added to an ecosystem has an outsized impact. We are talking a greater than 1 effect. The reason being is because each additional "node" causes the others to increase in value.
4/ This is why when I look at cryptocurrency, I see it becoming quadrillions in value. This is simply due to the application of Reed's Law on digital networks that end up interoperable.
5/ Hive is the blending of social media and finance. This is #web3 yet the impact is more profound. Network effects are now monetized even more than before. With decentralization, it is on steroids.
For full article:
https://leofinance.io/posts/taskmaster4450/metcalfes-law-and-currency-enormous-potential
While I don't understan this law completely, I understand enough of it, (and I've seen it in action,) that I know what you mean when you say #Cryptocurrency will reach quadrillions in the future.
#gmfrens
Back in 2015 I used to hear people saying #Bitcoin has no value other than people believing in it. I used to say, people belief in something can become a value for it.
Speaking on Bitcoin, have you checked $BCH price today?
#liotes