Networks, including crypto networks, can be valued in Metcalfe's law terms, however, the misalignment between shareholders and network users is a fundamental difference. Understanding market structure and sentiment is crucial, as well as recognizing the potential consequences of selling to specific customers.
The value of a network effect can be worth a lot, as seen in the rise of social, information, and merchant networks. Investing early in a network effect can be beneficial, especially if you understand its potential growth.
The power of social media giants like Google and Facebook has started to look like the hubris of a government or the banking industry. The decisions made by these gatekeepers are starting to prioritize their own interests over the interests of the general public, making it important to find alternatives inside the internet that are not controlled by social networks.
The internet has been widely shaped by Section 230 of the Communications Decency Act, which protects online services from liability for third-party content. This has led to issues with online services owning their content, while at the same time not taking responsibility for it.
Learn about the potential to create a successful fan page about any topic quickly and at a low cost, without giving up ownership like some Silicon Valley startups.
Building a business in the crypto industry is a difficult task due to the industry's significant fluctuations in demand and revenue potential. It is challenging to match expenses with revenue and determine when to cut back or turn off cash flow.