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Zipf’s Law still applies to the US Dollar, with 60% of the global currency distribution by value. But will Metcalfe’s Law kick in with the Digital Yuan over ti
by chriselles 6y ago
Zipf’s Law still applies to the US Dollar, with 60% of the global currency distribution by value.
But will Metcalfe’s Law kick in with the Digital Yuan over time?
The Yuan has a long way to go from its current 2.5% share.
But if Chinese digital superplatforms ever gain traction in the developing world, it would be relatively easy to swap the means of exchange on the platforms, especially if it offers superior purchasing power retention.
Pushing Digital Yuan as part of both physical and digital One Belt, One Road efforts make sense.
Perhaps the future is a battle between relative value propositions but with far lower switching costs than the Cold War.
Apple versus Android, Dollar versus Yuan.
Ultimately, it is the US’s game to lose far more than it is China’s game to win.
But complacency kills.
Especially when it falls beneath the velocity threshold of general population detection.
- the-dude 6y ago> the velocity threshold of general population detection. What?
- Arbalest 6y agoProbably most easily explained by the boiling frog I imagine.
- the-dude 6y agoThank you and siblings.
- adflux 6y agoI think he means that people are complacent when things degrade slowly
- unixhero 6y agoChina is sneaking in massive changes, which happen so slowly that complacent populations do not notice it before it is too late. This is my interpretation of what was said.
- rbinv 6y agoGPT-3, is that you?
- inglor_cz 6y ago"Especially when it falls beneath the velocity threshold of general population detection." This kind of sentence should never leave someone's keyboard. What about "Especially if the process is slow enough that people don't notice any abrupt change?"