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April 01, 2013, 09:19:13 PM |
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Network effect means as more people join one thing, others will join it too because it's reaching critical mass. So, Facebook had the network effect for social networks - people join it because they know people already on it.
I don't think it applies to virtual currencies though, or really any currency, because as long as there is a market (buyers and sellers) there is trade to be made. Volume of trade is lower, but it can still occur. Plus, some people have incentives to not use Bitcoin, as it may be unaccessible to them for whatever reasons. I think alt coins are here to stay, but only a few of them will really live for long-term
Litecoin seems to have momentum, and PPC seems to be taking off as well. I think both will be dominant alt coins
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