Crypto and the network adoption effect. A brief history on network adoption and how it will relate to the market and increase your investment opportunity
What is Network adoption and how can you best use it.
One of the better Crypto analysts, a guy by the name of Raul Paul, recently explained this very well.
Whilst this has happened over time we will start with the Mobile Phone example.
The early models were big boxes, the network limited, and the price very expensive. Sales were low and the followers were few.
Then Motorola, Ericsson, and Nokia entered the 2G phase with smaller phones and the market experienced substantial growth over the big boxes of days past.
Then Steve Jobs entered the market with the first smartphones and changed the whole perception of mobile technology. The network providers were dragged into this updating equipment and traveling through 3G and 4G upgrades to handle the far greater performance expected.
The adoption of phones followed the trend and grew to a point that there are more phones in the world than people.
The point of this is that adoption took time and technology to a point where the masses joined the queue.
Is the increase in Mobile phone sales now over?
The 5G monopoly
5G is a complete upgrade on everything we now know and will start the take-off in time. This will be so fast that the mobile World expects sales of 1.7 billion units by 2025.
When you consider that the first towers were put up way back in 2019 this is mass adoption in action. Yet, most of us are unaware of the massive benefits this technology will bring.
Consider the Electric Vehicle world
Electric vehicles have been played with for many decades and yet no one could provide a model that was acceptable to the mass consumers.
Enter Elon Musk with big ideas and an ambition that is unmatched in our time.
Yet growth has been slow.
If you think that is the end of the cycle you are wrong. It is the beginning of mass adoption.
Cathy Wood from Ark Investments states that by 2025 half the world’s vehicles will be Electric and Tesla will dominate the total supply at 25% of all cars sold.
With declining world sales it is estimated that there will still be over 10 million cars sold in 2025. Therefore Tesla sales will be over 2.5 million a year a long way from the current 800,000. Furthermore, if Revenue is $31 billion last year it should reach at least $100 b by then.
Shares have gone from $30 to $1000 to date. Profits are massive, production problems are being overcome, A.I. being adopted, manufacturing their batteries and chips provides a great starter base for the future.
When customers see the future the network adoption model takes over for massive growth.
Facebook was no different
Originally a product for university students and young people that took nearly 10 years to become remotely popular.
As you can see here, Network Adoption was not seen in the first 6 years however once it became mainstream
the results are staggering. Facebook profits are not too bad either.
Many other examples of slow adoption of mainstream products
Certainly, Google was slow to start as was Amazon who no one ever thought would be a Trillion dollar company. These were all slow starters however now dominate the world markets.
Disruptive technology changes the way we do things, for the better and demands mass appeal.
How far is Crypto into the adoption model.
First of all BitCoins value is twice the combined value of all the Alt-Coins put together.
However, the general trend is that they increase in a similar growth curve to BitCoin
Here we see the same early years of lag before the adoption model comes into play.
Furthermore, it has just started the growth period and it is tipped to reach $500,000 in 2025
being a similar pattern to both Tesla and the others.
BitCoins and Altcoins (anything that is not a BitCoin) are changing the way we do things in the modern world. Nearly every transaction will be done via BlockChain technology in the next decade and beyond therefore it is not going away any time in the foreseeable future.
Why would you think about investing in Crypto?
Does an erratic market foreshadow failure in Bitcoin
First of all, BitCoin is a store of value and a transactional currency. In the early days, many seed investors traded the value to get bigger returns thus affecting the market price. It is still driven by big players that often play with the price on a sell/buy regime.
The important issue is constant growth over time and this will start to solidify going forward.
Institutional buyers now dominate the coin holders and they are there for the long run. Now call Hodlers they want to achieve term returns to their balance sheets.
Elon Musk did this when he invested through Tesla about $1.4 billion in coins early this year. At the latest Balance sheet, he could book a $1 billion profit on his stake.
It is believed he now has BitCoin holdings in Space X as well.
As network adoption takes to hold the future will be forever upward and a safe investment.
Would a world calamity disrupt the future
We have experienced a World Financial Collapse, an attack on the US by extremists (9/11), and a resulting war in the Middle East through to Covid-19 over the past 20 years and survived them all. Of course, there have been setbacks and delays however the consistent trend is upward.
The modern world adapts to change very quickly and embraces technological advancement with ease.
An example is the Covid immunization plan. Although we had been tinkering with Virus cures they were a basic backyard product.
However, in just over a year we have immunized most of the Wolds population and not just with one dose but two and going onto three with boosters.
Mass adoption in a short time is greater than ever before.
Conclusion
None of this is investment advice however I have tried to lay out a road map to the future that brighter minds than mine can see.
Genius is becoming more consistent with Jobs, Musk, Bezos, Gates, and Zuckerberg. rating among the top group that has changed the world.
Space Travel is becoming an everyday thing as they explore the beyond and seek new horizons to conquer.
The Elon Musk space internet service is in its infancy and will supply broadband networks to even the most remote locations in the world. Plus it will carry a mobile phone network within it.
The future is exciting so make sure you are a part of it.
Just think if you had invested $1000 in the top half dozen performers at the start of their adoption where you would be today. To rich to talk to me that’s for sure.
Crypto and the network adoption effect by Peter Hanley
Crypto basics for those wanting to learn more
A fascinating read about trends in this new technological world we live in. I do wish that I had invested $1000 back then but there have always been new companies trying to succeed and not all of them do. So which ones would you pick? No one has a crystal ball and most people you ask would say that an online community or digital money would never be successful. I applaud these far-seeing people who are molding our world as we watch.
Thanks Lily and I appreciate your comments.
Yes it is a changing world and sometimes it is worth making a small investment and watching the outcome.
Bitcoin will survive.
Peter H