Bitcoin is unstoppable

This is part two part. One was about the 14 types of network effects that are available, especially the ones that you can use learning from the best in the field, from the Google to Amazon's Facebooks of this world, but applying them to your business, to your revenue systems. And then we saw that network effects make you unstoppable. So if you wanna make your business absolutely resilient and hard to attack and super defendable, then network effects are what you need to implement. And part one gave you very specific things that you can do, like Google reviews and working on your business model and specific marketing tactics. Today, we will look at the specific network effects of Bitcoin and the specific network effects of cases that you know, and we will go deep into the seven layers of Bitcoin first, and then look at chilis and other tokens that you can buy, have network effects.


So why is Bitcoin unstoppable? I, if you remember, two sided marketplaces have two magnets. So if you have, for example, like our business model is you have clients and you have coaches. The more clients you have, the more coaches wanna work with you. The more coaches you have, the more clients will hear about you. So you have two magnets and higher growth. If now a competitor wants to come in and say, oh, I also want a, a consultancy franchise model. Like Simon has, well, it's harder to get in because you have to compete against something that has already two magnets working. And so you need much higher energy frequency and speed to enter that field. The 14 types of network effects go back to video part one to see them direct indirect and social network effects. And something that I have invested recently in three months ago is chilis, which is from the company's SOS and what it is.


It is a currency option for blockchain back products and services geared towards mainstream consumers. So they have fans of soccer clubs, for example, Bonia, if Barcelona tools, et cetera, and the fans are communities, as you know, and they have tokenized these communities. So the interaction between the fans and the teams are tokenized. So it's a community you interact with the community, you own part of the community. You are even more part of the community. And when they have to decide about, do we pick this sponsor or that sponsor, do we pick this color for the next shirt? They involve the community, which makes them very strong. And this is why I've invested in them. How do you see network effect? And what's the difference. So to calculate a network effect, you have to adopt met low with this, which is basically the explanation for exponential growth.


Exponential growth is something like you pass by a building. They're building it right now. You see just stones next day, couple stones, next day, couple stones. You even forget after three weeks, you pass by there. Oh, still stones. Okay. There is a little bit of, okay, you pass then six months later. Oh my God, what's this thing. It's a huge house. Where does this come from? I didn't see this kind because four months it grows very slowly, very linear. And then it becomes exponential. The hockey stick. That's exponential growth. And that's, it's hard for our head, which thinks linearly and not in systems. It's hard for our head to understand and to see a network effect when it's at the beginning. So let let's, let's have a, an example, the telephone, the first phone users the first phone users when they started there was no exponential moment.


When you have two users, two people with a phone, it's one connection, four people with a phone that's six connections, 12 people with a phone is six. This six connection you see what's what's happening here is this is like, when it starts raining, you, you feel one, one drip of water and you go, oh, soon it will rain. Okay. Yeah. I, I think we have to move soon. Mm-Hmm and then another drop and another drop. Then you, you start moving and then it's many drops. And then it's, that is too late. This is exponential growth. How it feels. So two users, one connection, four users, six, 12 users, 66 connections, a hundred users, 4,950 connections. This is exponential growth. It's hard to understand it here. That's why write it with numbers. And then you see it, right? And same thing as, yeah, but Simon, I have branding effects.

Network effects of Bitcoin

I don't need network effects. Well, price effects, branding effects are strong. We use them every day. We are strategy advisors. We use them with our clients, but network are a whole different animal. Completely. Let me show you the example of Bitcoin. Why, why it's a different animal? So one of the people I've been following is Michael sailor and Michael sailor was one of the first people to clearly articulate what Bitcoin is and why, why it's unstoppable. And he did this at the very early stage. Now he talks about the seven layers of security of Bitcoin. And I think these are an element of network effects of Bitcoin. So let me walk you through them. The first element is energy and energy. Energy is really behind any technology. So why does technology exist and evolve big? Cause it helps you save energy. You save time, whatever energy does, it saves you time.


And with that, it saves you life. That's it that's technology. And that's why I'm so passionate about technology. Cause it saves time. It saves life. Now energy in terms of Bitcoin means you use stranded energy that would have no use. And this is huge because there are on these planets, there are volcanoes that nobody's using and now you can use them. You can monetize volcanoes. You can monetize rivers, which we are not doing because we are just stupid as a, as a species, but we can use rivers. They're kinetic energy, they're moving. And so you can use that. And, and this is what's happening now. Bitcoiners start using these stranded energy. It's the best use of energy. Bitcoin is the best consumer, the best client for energy in the world. You put one Tet energy into a, it, it creates more value, monetize, solar monetize, wind, which are intermittent, not always on types of energies, which are hard to use in many other industrial ways.


Not in this one. then you have the layer of technology. And so because of this energy layers, these are all reasons to, for people to enter Bitcoin, to use Bitcoin. And this is also why it's harder. If you would try to build another Bitcoin go, okay. Yeah. It's just a six pages PDF the Bitcoin white paper. I can build this. Yeah, try, go for it. You will see that it takes you all these seven things to get there. And that's why if you start now and if you are super, super successful, it will take you two years to be there where Bitcoin was 12 years ago. That's the point. That's a network effect. That's why it's unstoppable. And, and easily defendable. It will defend itself. And we have seen in it, China has been so far five times Bitcoin, and it it's just has become stronger in our countries.


So it makes the network stronger. That's network effect have anti fragile properties. So the more stress, the, the stronger they become technology you have now ASIC minors or very specific, very strong miners. And the energy is not a raw energy's encrypted energy, so that it's much more refined. And you need a million rigs to do what, what they're doing in, in a couple seconds right now, which creates a semiconductor industry that will align to that. Like they have aligned to G graphic cards. Now they will align to ASIC and to this kind of industrial use because it's an industry now it's a it's trillion industry, and now you have fabrication capital in there. And when you have fabrication capital, again, you have a moat harder for other things to succeed political. When you are a big minor, like had eight clean park riot marathon, you need a, a country that says, yeah, I want this because that's a high use of their land of their resources.


And and it creates waste. So you have to talk to, you need the support of the mayor, of the county, of the governor. And now you could say, well, but that's a negative thing. Yeah. Because it needs to happening needs to work. But when it works, it's working, then you have the support of a whole legislative element, which is again, one of the seven strong elements. For example, El Salvador, Texas, China, China says, I don't want you minors here. All right. Then we move to Texas. They move to Texas. And then El Salvador says, no, no, come here. And then next one will be Brazil and Pakistan and said, no, no, come here, come here. Which touches the spatial element. Let's move to the spatial element. Bitcoin solves a real problem, especially for countries that are less advantageous right now, poor countries, they are starting adopting it.

Focusing on your risk

Why? Because it works anywhere. North. That's the special thing. So we don't have the nation states boundaries that other currencies have. And other stores of values have that. You always have a, a country that doesn't let you get out that easily. Try to move from one country. The other with 500 tons of gold heart, it's easier with Bitcoin. So right now 100 megawats of worth of are worth 300 millions dollars per year, $300 million per year. That's 100 megawats Bitcoin. Now this hash rate is not bound to a political space. So that's the space point. Many countries who were really left out of the game for decades are now saying, all right, then I take this minors, minors have skin in the game because they have invested to order the rigs, which are very expensive and this, so these ASIC mining risks, they are expensive and they're waiting for 12 months until they come.


So they have, they have to go into risk. They have skin in the game. They order these things. They have committed capital. And if something breaks, they want it to be repaired. And if a, an attack from the outside is coming, they are here to end early. For example, the quantum computer will the supercomputer come, will the quantum computer attack everything. Well, if we have minors who are alert for this, they will be the first one to talk about it, to start brainstorming, how do we react? And they might be even much faster than, for example, if, if the super computer wants to attack the health system or legacy financial institutions, those guys are much slower to react. So we will have bigger problems at that point, political lobbying, when you have this kind of commitment. And when you have spent 16 months talking to the mayor and to the governor, and now, now you have a relationship to them.


Well, now you have a lobbying piece on in Washington. And in all the political places, you have no political lobbying. Like for the last years on pharma had and Google had, and now you have also the minor is there lobbying for blockchain, financial theos of Bitcoin support the holding more than anything else , it's better to land than to sell. It's better to borrow than to sell. You must be really not understanding Bitcoin, if you Elliot it's, you can use it as a collateral. You can keep the heart and use the soft like we used to do with real estate. Right? If you, if you own a, a castle, you will not sell the castle. You will lend it, borrow it to event planners to people who will have marriages there, et cetera, but you will never sell a cast. You would never do that.


It's appreciating if it's well built so you can use it instead of, so you keep the hard assets and you use the weak assets. And this is the hardest asset we ever had. Temporal. It's a store of value story of Paris, the street of Paris hundred years, the building 60 years, the stores three months. So Bitcoin, what many people criticize about Bitcoin and proof of work versus proof of steak is well it's low and it's heavy. Yes. When you have a street made of stones, you want the stones to be heavy. You don't, you don't think how can we make the stones lighter? No, because you don't want to move a street all the time. A store of value is something that is well built. When it's slow, you will have ones and layer two applications like the nighting network, et cetera. They are supposed to do speed and scaling Bitcoin itself is the foundation. It's, it's supposed to be heavy and slow cause it's a store of value and it's about security. And imutability so heavy and internal, like the streets of Paris. These are the seven layers of Bitcoin that made make this network effect. So when somebody asks you why do you really believe that Bitcoin is unstoppable? You have now seven reasons more, and you might send them this video. All right, keep rolling, buddy.