All you need to know.
https://twitter.com/WatcherGuru/status/1607378991450624001

 

$1 worth of #bitcoin in 2009 is now worth $22,000,000 in December of 2022

 

This year Bitcoin crossed over $100 trillion in cumulative transfer volume, with roughly $105 trillion having been settled on the network in total. This is a tremendous feat, illustrating how millions around the world have utilized Bitcoin as a global settlement network.

 

The most valuble part of the BTC network is its network value. Right now the price of BTC does not even include this value. I calculated this value to be around 53K a coin in 2022 based on the payment rail valuations of other stocks who have moved 100 Trillion in volume.

Bitcoin’s network effect has been gradually gaining steam in the first 14 years of its life. As a result, we have seen bitcoin, the asset, grow from a toy thing being sent back and forth through cyberspace by a few hobbyists, to now an aspiring global store of value adopted by millions with a market capitalization in the hundreds of billions of dollars.

But Bitcoin’s network effect is not just about increasing the number of hodlers using bitcoin to store their wealth in a censorship-resistant, undebaseable money. It is actively occurring on multiple fronts. For example, it’s happening at the merchant level as more merchants adopt Bitcoin, at the developer level as more shadowy super coders work on it, and at the security level as more hash rate comes online as miners are attracted to it.

As Bitcoin seeps into the mindshare of society, it will continue to attract new users of all kinds and suck the wealth out of other asset classes, strengthening its network effect even further. This is the positive reinforcing feedback loop of the Bitcoin network.

Bitcoin’s network effect is an important reason why it will likely continue to attract users and gain value over time, as well as why it is so difficult to replicate.

How does another cryptocurrency replicate the organic grassroots adoption that Bitcoin has experienced? How does another cryptocurrency replicate all the years that Bitcoin has survived, and all the obstacles it has overcome while functioning with 99.9% uptime? How does another cryptocurrency replicate all the individuals, entrepreneurs, products, services, and infrastructure that now make up the Bitcoin ecosystem?

The answer to all those questions is…Bitcoin’s network effect can’t be copied.

At this point, Bitcoin’s network effect is like a snowball rolling downhill, gathering steam, and growing ever larger with every successful block that’s mined.

Tick tock next block

 

https://twitter.com/saylor/status/1610354955814162436

 

Money isn't just information. Money is energy



We experience value through products and services that give us value, instead of trying to understand the intricate details of the plumbing that gives rise to those products and services, and

Money is the foundation layer that gives rise to everything else.


Therefore, when money breaks down, standing your ground when the ground gives way will provide little in the way of safety.

How is money breaking down and what should we look for as evidence of the failure?

Central Banks are manipulating Fiat money at an unprecedented rate to avoid a credit collapse of the system

Using information theory as a beacon it follows that misinformation in money MUST be growing throughout the system.

It follows as a second-order derivative of that misinformation is that trust MUST be declining throughout the system. We have seen that in the government and economy for the last few years. Not everyone realizes that what has gone on with COVID is linked to the misinformation about money.

Because we measure a system from within the system, for most of the population, it would make the truth virtually impossible to see.

With this misinformation as a backdrop and a new protocol layer technology emerging, remember that open protocols provide the most value to society and are the hardest to understand it would be extraordinarily difficult to see why Bitcoin alone stands out as a breakthrough technology and where it is heading.

By extension, it would be relatively easy in this environment for ill-informed or bad actors to conflate Bitcoin with Crypto, Web 3, DeFi, Blockchain, Metaverse, and other naming conventions to gain an advantage for their offering.

Bitcoin is not merely monetary energy. Bitcoin is a Credit Default Swap that pays as the fiat system collapses. It is a new type of database with radical integrity and robustness assurances that can be used to improve the trustworthiness of other systems that anchor into it. If you don’t have full self-custody of Bitcoin you really don’t own any Bitcoin. Hard lessons will be learned tied to this fact. Bitcoin is a database that can be used for many monies/tokens. This perspective will grind the gears of some maximalists who believe that Bitcoin should only be money.

With recent debates and backlash over folks using Bitcoin for NFTs, I think it’s important to note that, after many years of Ethereum being the primary factory for shitcoin tokens, we should expect to see a renaissance of token issuance on Bitcoin and Lightning via technologies like RGB and Taro.
I believe Bitcoin is only limited by human ingenuity and there is an evolution coming. I doubt many will fully understand much less embrace it.