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I think it's interesting that people forget anything network based tends to unwind just as fast as it winds up. Decorrelation (e.g. low viral coefficient) can b
by sbinthree 6y ago
I think it's interesting that people forget anything network based tends to unwind just as fast as it winds up. Decorrelation (e.g. low viral coefficient) can be antifragile. If everyone moves to your city for a different reason, it is more resilient to downturns than if everyone moves to your city for the same reason and conditions change. Facebook may unwind for the same reason it was successful: the lack of privacy.
- fairity 6y ago> I think it's interesting that people forget anything network based tends to unwind just as fast as it winds up. I think that largely depends on market dynamics. For systems that benefit from strong, direct network effects, the vast majority of users will generally join whichever platform has the largest network. Once you are the clear market leader, you will enjoy fast(er) user growth. Even if your network starts to dwindle, most users will still gravitate to your platform so long as you maintain your market leadership.
- sbinthree 6y agoI agree, I'm arguing that the thing that leads to network success tends to also be the reason it unwinds. Facebook would not have worked if privacy prevailed, which is also the main driver impacting the unwinding of their network.