We tend to think of bitcoin as a digital currency and that is its main incarnation. But it is also an ecology that brings together different types of actors. In this sense, it is like other web based ecologies like Facebook or the Apple App Store or EBay or Amazon’s web store. But there are some special things about the bitcoin ecology that we are just beginning to see. They are special because of their democratizing effect on value flow. Within the bitcoin ecology, you get many opportunities to cut out middlemen and transaction costs that make value flow.
BTW, before going further, I may need to explain a bit more what I mean by “value flow”. Essentially value flow refers to the movement of value between producers, sellers, users, re-users, etc. Markets promote value flow. But as we well know, markets do not eliminate all inefficiencies in value flow.
Here is the thing. When you make value flow more easily, you make it easier for folks adding value to transfer value added via transactions. That accelerates transaction flow and it accelerates the pace of knowledge acquisition about the use of value added products and services.