In his latest blog post, “Strategic Advantage and Finding Opportunities,” Dr. Craig Wright explores why Bitcoin is uniquely positioned to excel. To show why this is the case, Dr. Wright takes a look at why both Walmart and Amazon were successful.
Dr. Wright begins by saying, “Size creates its own form of advantage. Walmart leveraged the long-tail effect in the same way that Amazon has done using the Internet.”
There is strength in numbers, and it can be beneficial to service the numbers that come from the long-tail distribution—a strategy that both Walmart and Amazon used and found success in.
“In the case of Walmart, the rural population, out of a total population of just under 179.5 million people, consisted of just under 58 million people which statistically formed a Pareto or long-tail distribution…Walmart was able to capture one third of the American population without competition… Walmart did not enter a crowded industry. Walmart entered an underserved industry, that was undeveloped,” says Dr. Wright.
As you can see from the Walmart example above, there are a lot of opportunities to prosper in underserved markets, which leads us to Bitcoin. Bitcoin has a number of advantages that allow for opportunities to be created in underserved markets, or rather, markets that have never been served before.
“The creation of new markets always occurs when transactional friction or, rather, the cost between exchanges is lowered. It increases the ability to reach stable equilibria, and arbitrage across providers that can offer value,” says Dr. Wright.
Before Bitcoin, it was not possible to send a fraction of a penny or transfer value for less than a fraction of a penny. Non-reversible transactions and micro-transactions have the ability to change the world; the creation of Bitcoin provided a solution to problems that could never be tackled before. It also led to the launch of an entire industry that works toward providing Bitcoin-based solutions.
However, the new technology that is Bitcoin has quite a few of the world’s problem solvers puzzled. Bitcoin has given people a whole new way to solve problems, so much so, that not everyone has found the best fit for Bitcoin yet. Since Bitcoin allows individuals to serve a market that has never been served before, we are still on the hunt to find the market that can best be served by Bitcoin.
“The difficulty people have is to understand what models will be created. With the ability to facilitate micropayments as low as a fraction of a cent and, in the future, likely as low as a hundredth of a cent, per transaction, Bitcoin offers entirely new transactional models, ones that, in practice, have never existed before,” says Dr. Wright.
But each day we become keener to the opportunities Bitcoin has created and the market problems and situations that a Bitcoin solution works in. We can learn from companies like Walmart and Amazon, and even others that work within the digital currency space, to see what an effective strategy that leads to success looks like.
Are you wondering how Walmart was able to experience exponential growth, why Amazon was able to undercut Walmart shortly afterward, why Bitcoin has parallels to both Amazon as well as Walmart, and why Bitcoin has even greater opportunities to prosper? You can learn why this is the case in Dr. Wright’s latest blog post, “Strategic Advantage and Finding Opportunities.”
See also: Dr. Craig Wright’s keynote presentation at CoinGeek Live, How One World Blockchain Powers a New Future for Computing & Cloud System
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.