Good piece I thought for such a short clip.
Big fail Simon Smith "archetype london financier" ... he is basically saying because adoption is so rapid it is a bubble. Since bitcoin is NETWORK of nodes, bubble-like adoption rates can be expected for any useful networks, it is called the network effect. A bubble forming and a network being adopted will look identical. It is exactly the same as all the people who were discounting the rise of the Internet itself in the early '90s, financial types who discount bitcoin as a bubble do so at their peril, they need to do a little reading about the network effect, (their ignorance is curious since their very livelihood depends on the network effects of efficient markets)
Big fail Simon Smith "archetype london financier" ... he is basically saying because adoption is so rapid it is a bubble. Since bitcoin is NETWORK of nodes, bubble-like adoption rates can be expected for any useful networks, it is called the network effect. A bubble forming and a network being adopted will look identical. It is exactly the same as all the people who were discounting the rise of the Internet itself in the early '90s, financial types who discount bitcoin as a bubble do so at their peril, they need to do a little reading about the network effect, (their ignorance is curious since their very livelihood depends on the network effects of efficient markets)
Exactly. Not all exponential processes are bubbles, some (e.g. PCs, Email, Facebook) grow quickly and then become a permanent plateau of adoption. Bitcoin is unusual in that it has had, from the get-go, a directly visible market price closely tied to its adoption curve. I'm sure if Facebook had been a public company from day one, then its valuation chart would likely have looked like Bitcoin's. We simply never saw Facebook's "bubble" chart because their valuation was private for most of their history.
