Network Scaling Effects, Cryptocurrencies and Flywheels
At critical mass, the value obtained from a Network is greater than or equal to the price
paid for the goods or services available through the Network. The original law is based
on the idea that the value of a network grows in proportion with the number of all possible
connections.
This can happen for short periods of time because of factors such as herding behavior. However,
without an infinite pool of people it is not sustainable. For this reason alone, a crash is inevitable.
A key concern must then be, how to attract early adopters and opinion leaders prior to reaching
requisite network or scaling.
The strategy here is to create an Eco-System that builds-in enough tangible and experiential value,
to early adopters, without significant network or scaling effects at the outset. The Flywheel model
produces these benefits without banking on network effects or economies of scale
(Amazon, Atlassian, Walmart).
Eco-System must be, Decentralized, Anonymous and ‘Secured’ by Blockchain Validated Eco-System GDP.
Eco-System-GDP is Defined and Measured as: Authenticated Cash and Cash Equivalents,
Modest Earnings Margin/Growth Multiple + Audited Net Asset Value (NAV+) of Portfolio
Holdings; land, buildings, plant, equipment, finished goods inventory, natural resources, etc.
An Eco-System and Application Platform Enabling the MOE to be sent directly from one party
to another, without being mediated through a Centralized Gate-keeper, Regulatory body, or Exchange.
A Cryptocurrency Eco-System or Cryptosphere Capable of Meeting the Needs of Hundreds of
Millions of Consumers, Traders and Trans-Actors on a Truly Global Scale. Driving Rate of Adoption,
Fungibility, Network Services, Exchange and Utility Values.