Tweet storm on "Why Bitcoin Only"; Network Effects Edition:

Often people think of cryptocurrencies as technology, and this is wrong. Let me explain.
Technology is constantly changing, updating and enhancing. This is awesome. Technology is awesome.

1/13

Technologies came together to allow Bitcoin to be invented/created/discovered.

But this does not make Bitcoin a technology; ie something that can be constantly changing, updating and enhanced like most technologies: phones, software, devices, instruments, ...

2/13

Bitcoin is a protocol, like HTTP or TCP/IP or SMTP or IPv4 or IPv6. Protocols change extremely slowly because they are the base of a vast network of tech which utilizes the protocol. The more basic (or lower down in the technology stack) the protocol the harder to change.

3/13

See IPv4 ('81) vs IPv6 ('95) examples. IPv4 is used everywhere still despite the entire industry agreeing that IPv6 should be used. And that's just IP addressing, which is not as low as TCP/IP.
4/13

Relevant history: TCP/IP competed against OSI. TCP/IP was done by geeks, OSI by suits. Geeks won. Can you imagine changing from TCP/IP to another competing infrastructure?! The internet would require rebuilding. The Network Effect is massive. Maybe the biggest on the planet.
5/13

The longer bitcoin stays top dog, the higher its network effect. The more usuable things that get built on Bitcoin, the higher its network effect. This is not myspace vs facebook. It was for the first couple years perhaps but Bitcoin won that battle.
6/13

In my opinion we are approaching the IPv4 vs IPv6 difficulty of change network effect and will get there in the next couple years. The world uses bitcoin for savings. Nation states are using it. Institutions are using it.
7/13

A few years back big money tried to change it and lost (segwit 2x wars). A few years back major players in the space tried to change it and lost (see blocksize debates). Bitcoin is battle hardened and ready to increase its network effects.
8/13

Things are being built on bitcoin to further entrench it. The Lightning Network protocol (referred to as BTC/LN stack like how TCP/IP is a protocol stack) allows instant small transactions and may underpin the use of bitcoin as a medium of exchange across the globe.
9/13

LN is already faster than visa and can handle the throughput of visa and is a protocol so anybody can operate on it. Another layer is being built by Microsoft for decentralized identities. No more usernames and passwords. You manage your ID, secured by BTC Blockchain.
10/13

These are additional layers of protocol on top of bitcoin like HTTP is on top of TCP/IP. This will enable even more apps. But even on the "base layer" of bitcoin, other apps are being developed and used already. Most useful that I'm aware of are monetary savings and custody.
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But Microsoft's open source stuff will enable decentralized IDs that we control (no more selling our data) and the LN already allows for sub-penny to hundreds of dollars of purchases to occur instantly and basically for free (sub-cent transaction fees vs Visa's 3%).
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TL;DR
Bitcoin's network effect is growing by leaps and bounds. There is NO competition for Bitcoin. Of that I am convinced.
Bitcoin is about as inevitable as the US dollar hegemony ending.
Fin.