Bitcoin is not in the moon, it is simply spreading out to the planet Earth

Hello, steemians and bitcoiners. We have 7 things to talk about today.

Trace Mayer explains each of the 7 network effects of Bitcoin

1st Network Effect: Speculation

People trying to ride the Godzilla. Buying to make quick profit over volatility. Buying in and raising the momentum peremptorily. We then see the surge of exchanges such as Kraken, Poloniex, Bitsamp usw. These are channels opening for input of value into the system.

2nd is Commerce

Merchants start to accept it. Merely because they understand it can be accepted and will not incur debt or fraud of any kind. Many services start also to facilitate the entrance of the payment technology. We have bitpay, shoppify and so on.

3rd is Consumer Backtrack

This effect is somewhat like Newton's Third Law of Motion, i. e. cause and effect. So, because merchants start accepting it, more consumers start to use it provide they start searching and understanding the immediate advantages of using it. For instance, services like purse.io are direct consequences of the 3rd network effect

4th is Security by Mining

As the network grows and spreads, the amount of processing power injected into the system starts to become unfathomable. It surpasses all major computational conglomerates together. Even first confirmations start to become extremely reliable.

5th is Software Compliance

Developers integrate their softwares into the blockchain and begin upgrading old software to be able to interact with the network. More and more APIs to interact with Bitcoin and the blockchain are created and improved.

6th is Financial Mingling

Wall street starts to step in. Major investors begin to allocate part of their wealth into the system. Major investors begin to buy startup companies that are thriving in the ecosystem. Venture capital percentage begins to point majorly to blockchain environment.

7th is Settlement

It's the final phase. The realization of change. It is when people will start pricing things directly in bitcoins and start cashing in not in dollars or euros but in bitcoin itself, realizing it has permanent value, security, validity, usability and so on.

---

EDUARDO CAPANEMA
@bitworkers

As a souvenir, we posted below the Trailer of "The Magic Money: The Bitcoin Revolution" film. habt Spaß!