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    [Daily Discussion] Friday, November 08, 2019 Bitcoin Markets

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    [Daily Discussion] Friday, November 08, 2019 Bitcoin Markets

    [Daily Discussion] Friday, November 08, 2019

    Posted: 07 Nov 2019 08:05 PM PST

    Thread topics include, but are not limited to:

    • General discussion related to the day's events
    • Technical analysis, trading ideas & strategies
    • Quick questions that do not warrant a separate post

    Thread guidelines:

    • Be excellent to each other.
    • Do not make posts outside of the daily thread for the topics mentioned above.

    Other ways to interact:

    submitted by /u/AutoModerator
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    [Altcoin Discussion] Friday, November 08, 2019

    Posted: 07 Nov 2019 08:05 PM PST

    Thread topics include, but are not limited to:

    • Discussion related to recent events
    • Technical analysis, trading ideas & strategies
    • General questions about altcoins

    Thread guidelines:

    • Be excellent to each other.
    • All regular rules for this subreddit apply, except for number 2. This, and only this, thread is exempt from the requirement that all discussion must relate to bitcoin trading.
    • This is for high quality discussion of altcoins. All shilling or obvious pumping/dumping behavior will result in an immediate one day ban. This is your only warning.
    • No discussion about specific ICOs. Established coins only.

    If you're not sure what kind of discussion belongs in this thread, here are some example posts. News, TA, and sentiment analysis are great, too.

    Other ways to interact:

    submitted by /u/AutoModerator
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    Bitcoin’s Price Doesn’t Reflect Its Value - A Look At Bitcoin's Seven Network Effects

    Posted: 07 Nov 2019 12:08 PM PST

    First introduced by Trace Mayer, one of the longest standing bitcoin investors, the seven network effects helps us further understand Bitcoin's progression as a world reserve asset. The network effects for Bitcoin encompass the ecosystem as a whole, with a summation of multiple sectors that surround bitcoin starting first as a speculative asset.

    The full post here with examples of each network effects growth, along with factors that may be suppressing Bitcoin's price as it couldn't fit into a single reddit post

    Speculation -- For some, bitcoin is a means to subvert governmental control. For others, bitcoin is a means to store value. For most, bitcoin is a means to make a short-term value gain. No matter how it's used, everyone benefits from the network effect and increased liquidity.

    Merchant Adoption -- While there may be some time before hodlers will want to part with their bitcoin, the number of those that will accept bitcoin in return for goods and services has .

    Consumer Adoption -- At one point, more bitcoin merchants seemed to exist than consumers. The average consumer has shown that they're incentivised to spend more of their paper money than bitcoin in day-to-day purchases.

    Security -- To summarize the security network effect and repeating cycle:

    1. The price of bitcoin rises.

    2. Mining becomes more profitable due to the increased price of bitcoin received from the mining reward for producing the next block.

    3. The hashrate goes up as more miners join the network to compete for this increased reward and in the process contribute their electrical power.

    4. Network security follows hash rate's growth as the increased amount of electricity spent creating blocks means more electricity is required to override the previous blocks.

    5. With more network security from the increased difficulty of overriding previous blocks, comes more trust in the network's ability to preserve the coins of the holders, leading to an increase in network usage.

    6. The cycle repeats as these new users as well as increased trust in network lead to an increase in the overall use and subsequent price of the asset.

    Developer Mindshare -- If you're not bullish on Bitcoin, you're likely not following the right developers. Be it on Twitter, GitHub or written work, it's evident bitcoin developers work in a meticulous and deliberate way. Bitcoin is an open-source and permissionless protocol, meaning anyone can submit and run their own code. Whether or not other members on the network decide your code is worth accepting and running, is another story.

    Financialization -- "Financialization" is the inevitable process of Wall Street getting control of bitcoin. That's only a joke, of course. Financialization is when the value between multiple parties is facilitated using a financial instrument This includes derivatives like futures and options.

    Adoption as a World Reserve Currency -- All six other network effects feed into this overarching development in bitcoin's growth as an asset. The history of money and our understanding of its network effect leads us to believe that the reserve currency is a "winner-take-all" competition. This generally means there can only be one dominant reserve currency at a time.

    submitted by /u/RhythmTrader
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