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SFBW19 – The Importance of Proper Measurement Within Digital Marketing for Crypto Companies

My name is Jamie McCormick, a managing director of Bitcoin marketing team. It’s going to flick through this very quickly here as well, Who I am been working in crypto since 2014 um. In terms of how I got here into the crypto space, so I classically trained in marketing – remember the Marketing Institute. I worked for 12 years in the article games industry prior to getting into crypto, specifically in virtual currencies and then five years in blockchain as well.

I ended up designing primarily because of advertising fraud. Three tracking and accreditation systems did one and article games have one in Facebook and then a generic platform as well, and we’ve integrated the tracking and accreditation methodology that we use in to over 10 crypto projects as well. I managed about 12 million advertising across this, so while you’re here um just to run through kind of the topics that are going to be talking about.

So we’re going to have a look at the smart approach in terms of a marketing plan. The importance of measuring how modern, tracking and Accreditation works some of the different challenges that are there to measuring the pitfalls. If you’re relying exclusively on Google Analytics the benefits of effective tracking a few examples, what happens when tracking goes wrong and then we’re going to have a look at a real-life example of a conversion funnel and specifically, how measurement improve that so in terms of being smart? For any marketers in the room, probably familiar with this, it’s an acronym for a specific, measurable, achievable, realistic and timely within digital marketing.

Taking a smart approach, that’s a cryptic company really measure all of the different activities that you’re doing to see what’s working. This is good and bad, and it’s really important that you tailor this against your specific KPIs. Now every type of project is different. If you’re selling a hardware wallet, it might be ecommerce sales. If you’re doing an exchange, you might have to do onboarding process trading trading volume and then there’s various different types of KPIs that you have and what this lets you do then has really build specific tactics in relevant marketing blogs for your different audiences.

There you can measure them, so you can really find out what’s working driving traffic to your website, into your conversion, funnel specifically through your conversion funnel and on to sales, you want to have it so that it’s achievable with your resources, skills and budgets. It’s realistic in terms of your expectations against your company KPIs and that you can find your audience in the right place at the right time with the right message now, when you combine correctly implemented tracking and accreditation, you can see things for their true impact, so good About you know not every advertising campaign is going to be brilliant.

Not every advertising campaign is going to be poor. You know often you’re going to have situations where you have some good, some bad. You might have say 100 publishers sending you traffic from a particular advertising network, but there’s only actually three or four of them that are really generating most of the sales that you’re getting in there as well. So once you can see, what’s good, you can focus efforts.

There once you can see, what’s poor, you can cut it off and redistribute that budget around then as well. So in terms of measuring you know anyone who’s using digital marketing. It is one of the most measurable activities that a company can do and you need to have your tracking in place. If you don’t have tracking in place, you can never really measure anything other than at kind of a generic overall level as well.

So when you’re trying to do digital marketing, tracking and accreditation, you need to have your platform configured. So when traffic is hitting your website you’re adding URL parameters, so people may be familiar with UTM tags like feed into Google Analytics. You can add a lot of costs and values onto these as well. These need to be fed into the link prior to being sent to your website or to an app store as well.

Once you have that in place, then you need to be able to take that data feed it into your own user registration database and then pull those reports into a marketing report which is limp, lined up with your KPIs and then. Finally, once you have it, you can act on that report and we’ll have a look at this. So knowing what’s good is great because you can focus budget there, knowing what’s bad lets you avoid wasted, spend so, if you’re running an advertising campaign for $ 10,000, you should know after about a thousand or 2,000 told us, whether it’s actually going to work or not, And if it’s not working cut it and move it move the budget elsewhere.

Also having the data as well has a lot of applications beyond it. You can find problems with your conversion funnel you can find some strange behavior, that’s going on anomalies. You know in article games, we found all sorts of products. A product design, you know, might be specific points within a game that were deep into the game that were actually broken and in a conversion funnel in the example will show later on.

There was two points that we’re losing over: 60 % of the user is going through. So when you’re dropping a lot of money on campaigns and they’re, not really going the whole way through, that’s going to cost you a lot of money as well. Now, once you can see what is working and you can fix it, you can focus and improve over time. So in terms of modern tracking and accreditation, you know, overall, your traffic is going to be mixed up from a couple of different sources.

So you have your organic traffic, which is going to give you a baseline, that’s coming in, so this is coming in from your SEO. This is coming in from any media that you’re doing in terms of peor. You’ve also, then, got traffic, that’s being driven from your communications. So this is your blogs, your social media posts and then you’ve got your advertising traffic than as well. Now I know our hosts ears were podcasts as well.

So, equally, you can use promo codes where you don’t have a link to measure and link it into this sort of a methodology as well. Now. The key thing to remember here is, if you don’t tag communications or advertising activities, you’re, never going to be able to measure them after the fact, it’s very, very, very hard after somebody has registered to then try and find out where they came from. So if you add the information when you’re sending it whether it’s through Google AdWords campaign, whether it’s through a ad campaign with someone like coin Zillow or coin traffic, podcast social media posts, you can do that in terms of P or obviously pure they strip out.

Quite a lot of the links, but you can use timestamp information to pin a cross-reference when traffic came in and link that back generally to particular types of activities, and especially when it comes to communication. Measuring, like we’ve integrated this with several of our clients of community management teams. So when they take kind of a unified approach to measuring activities, they can say: okay, well, we’re working across Facebook, we’re working across Twitter, we’re working across medium, we’re working across YouTube and what they can find then is well.

Twitter is actually getting us five times. The amount of traffic Facebook is getting us a lot, less mediums, getting us a steady amount and they can use that then to kind of repurpose their time in their effort. So they spend less time on the blogs that are giving them less results and they focus more on the ones that are so in terms of some of the challenges that you have to measurement as well. Now I’ve managed a number of marketing teams prior to getting into crypto, and human error is one of the big ones.

Now going back to my games career, we had about eight different people on our team. None of them were trained to the same standard weed people in from South Africa. We people from Ireland from England, Italy, Poland, Russia, Germany, everyone was digitally marketing qualified, but no one had the same training. So we really had to give that standard training to the entire team so that they could do it as well.

I blocked plugins really caused a big issue, so you’ve got the likes of brave where you’ve got default are blocking coming in. So in this particular event for SF BW, we were running campaigns with brave and because of adblock and because they were reliance on Google Analytics. We found it very very, very hard to actually measure the results. We can see the traffic coming and it was very hard to cross-reference that, because of this in terms of script, locking plugins it’s the same approach, you’ve got cookie blocking as well so say.

For instance, with here we had to you know you had a an e-commerce tag or a user ID that was being set by Google Analytics, and this has been shared into the Eventbrite and that wasn’t being passed at some point because of cookie blocking. That was going on now. Also in many cases, you’ve got advertising blogs that won’t or they can’t provide optimization data. So if you have a network that you’re talking to – and they won’t either give you a publisher ID or a website domain for the traffic, that’s coming in, don’t work with them.

You’ve got no way to optimize it and also, if they’re doing that they probably have something that they’re trying to hide as well. You’ve also, then got under reporting if you’re relying exclusively on third-party analytics platforms. So, generally, in non crypto space, you might have a 10 20 % discrepancy between analytics data and your own database encrypter that can be up to 40 %. I’ve see people more privacy, conscious people using more adblock and and so on.

Now that feeds into relying exclusively on Google Analytics, so we’ve worked with lots of clients when it came to analytics often they’re set up in terms of there’s a tracking script set up on the page and that’s recording, but often they’re, very often misconfigured. You don’t have event tracking setup, you don’t have conversion goals set up and it just makes it very difficult for you to read them as well.

As we said, there’s underreporting up to 40 %. You’ve also got a very separate at separation of analytics from your underlying databases. So, if you’re running an exchange, you know your exchange database is all of your information there. You might not necessarily be feeding it straight in so analytics is always going to be sitting on top now, if your analytics is showing less, then your real database, that’s normal.

If it’s showing more something’s wrong and again it’s misconfigured. If you don’t have on sorry, if you have on tag traffic as well, this can, combined with your organic traffic, can really skew your stats and really, you know the whole points of tracking is really building two different things. You know you’ve got the John Wanamaker dilemma, which is half the money I spent on. Advertising is wasted, I don’t know which half by doing tagging you can see exactly what it is and then you’ve also got the period or principle, which is the 80/20 rule as well.

Now, when you get tracking right, it lets you see at a very holistic level. At all of your marketing communication activities side by side in one report, so this can be your own team, stuff, organic traffic so coming in from pure stuff coming in from third party agencies and everything else, and you can measure them and I’d like for like basis. The approach that we’ve always taken has meant that you’ve got one report that you look at from your own data and then you can reconcile that against 30 or 40 different reports from platforms and see if there’s an AMA lease there as well.

So if there say they’re measuring lots of leads and you’re, not that’s one thing: if they’re measuring lots of traffic and you’re, not that’s another thing there as well. Now, once you have the tracking in place property, you can identify positive traffic sources and really focus your money and your time and your effort on these as well. In some cases, you’ve got it’s very hard to get volume and quality.

At the same time, and often what you’ll have is you’ve got an overall blog and within that you’ve got a couple of traffic sources, but generally over and over and over, are bringing in safe bets. So once you can identify a safe bet and traffic source, you can focus your budget there and maximize that out. You can identify negative traffic source, so these are ones that are bringing you in nothing they might be bringing in spent, they might be bringing in users or registrations, but they might not be going the whole way through your funnel and you can filter them out.

Now. Often, what we’ll see is you have a blog where you have some good traffic sources and then a lot of bad ones. So in one case we’re running a campaign with the clients they had a base. I think 60 different publishers that were sending traffic into the campaign two of them those publishers were generating 80 % of the traffic and spent on that. So when we tried to you know the other fifty-eight we’re bringing in lower volumes and they’re bringing in registrations, but when we cut those two specific traffic sources out, the whole campaign improved spend dropped, but the conversion rates all went up, click-through rates went off, and revenues Came up and the oral I came through from that as well.

So really you know it boils down to saving money. You know you want to save money on marketing spend also when you map out your conversion funnel and again, we’ll have a look at an example of one of these. In a moment, you can really identify bottlenecks in your process, so we’ve worked with lots of teams where the developers made the conversion funnel that they thought was okay, but in reality it wasn’t the most intuitive for end users.

So, by mapping this out mapping at every single step, looking at ratios between them and finding out what was working and what wasn’t we were able to identify, drop out points, some small, some big. So once you also have the product as well and you’ve identified that there’s a problem, you can identify barriers to product usage. So in a lot of cases you have to fully go through a funnel before you can use the platform and if you’ve a barrier there.

That’s stopping people getting into it. You need to be able to improve that there as well now development teams, all the ones that I’ve worked with know of data. You know the only thing that will get over an attitude in terms of oh, I built this and it’s great. What’s the problem with it? Yes, you did build it, but there’s a problem there. The data is telling me the problem. It’s not me. It’s there’s! Actually, a problem there, that’s there as well now, once you have it and you’ve got the recording in place, it’s very easy to quantify the changes.

You know you put a fix in on a particular day. You’ve got the stats all the way up to the previous day and then, from the day on you can see the improvement if it goes up great, it’s going to make your life a lot easier, the next time you’re looking for problems if it goes down or There’s no change, you can roll back and look at something else, and really what you want to do is by building this approach and really mapping every single traffic source against your KPIs.

You can look at the metrics there. You can find the certain traffic sources have higher metrics, so we’d often see you know, say with an affiliate. You might have an affiliate that has very low volume, but they’ve got a high click-through rate and a high product usage, and that might be coming from a texts post or some information about it there as well, whereas doing banners. You know you’ve got a lot more volume, you got a lot more traffic, but the quality is very poor.

Now, equally, when we look at say some of the crypto ad networks that are there, the standard banner sizes that are there have very victory rates, but some of the custom html5 placements that they have, which are much more prominent costs a little bit more. But the kicks your rates are five six seven times better and when we kind of measure that I you’re paying on a CPM that makes a big difference.

So what happens when TAC tracking goes wrong? Firstly, you can fail to identify systemic problems within your product design. It’s buried there, people don’t look at reports or databases in a lot of cases there and they just continue working away on something there as well. You can wait finite marketing budget on activities that are generating no or poor results, and they also bring down your overall numbers.

You can waste a lot of team effort, say if you’re have a communications team, that’s working across six or seven different blogs and you’re, giving equal effort to them all, but there’s only three of them that are generating what you actually want. You know you can save a lot of time and stress and hassle for them just focusing most of their time on the three that are working in terms of skewing stats.

If you have a lot of traffic coming in or you’ve got a load of poor results. This can really skew your stats and you can’t kind of change that then, and you can really focus on traffic sources, which you know you have kind of situations where you’ve got middling ones. You might have users that you’ve got decent traffic coming from a particular publisher or a keyword, for instance, but they’re only getting halfway through the conversion funnel and repeatedly there as well.

So while it looks good if you’re looking at the first KPI, which is an initial registration, but you look at say, KPI for they’re, not getting past that point there as well, and sometimes you might focus a lot of effort in time and money into those campaigns. Because they look good from their initial KPI, but they’re not actually going the full way. Also, what can happen is, if you take, you know, a broad sweep approach.

You may have a marketing blog. Like the example I gave earlier on, where you have one or two bad parties in there as well, and you cut the whole blog because you’re getting rid of those one or two so being able to pick out and pick and choose and really see, every single Traffic source compare them like for like and then surgically remove the one or two that are causing problems. That makes a big big, big difference there as well.

So it’s kind of seen the wood from the trees. Also, you know: we’ve had situations where you’ve got a lot of ad fraud. This could be amplified because, if you’re focusing on the right the wrong areas, you can have unauthorized incentivized traffic. You know faucets are kind of the bane of the crypto industry when it comes to advertising they’ve got and by the elements in terms of the onboarding, but generally you’ve got a lot of odd for that’s, going on and they’re from humans now coming on.

To kind of a real case example for a conversion funnel, so we have a client sees in the crypto finance space. They’ve got a complex seventh set formal and you had to get through this before you can use it so, starting off we’ve the traffic this had to hit one of their landing pages, and then we qualified the traffic with the information on this sent as well. They then had quite a long ball t-step registration process.

They they’re not to activate their email accounts. They had to set up two-factor authentication yet to enter in some personal data. They had to go through the KYC process, which everybody loves, and then they had to accept the program terms and conditions, and then, after that point they could get into the platform and use it now. This is similar to an exchange, but there’s a lot of platforms and crypto space that have something similar to this as well.

Now we implemented tracking with these guys a year ago and we’ve put tens and tens and tens of thousands of leads through this system and this approach in this methodology. Since we’ve been doing this as well and we were able to map out every single one of those steps, look at the ratios between them all as well, and then work with their teams implement the improvements. So in terms of what we did, we had the landing page, so we redesigned their landing page.

They were sending traffic to the homepage. We built called a sock or a dead-end road landing pages, and then we got a nice design that we were happy with. We did a B testing using Google optimize to kind of see which ones were best performing, and then we read at the traffic and focus the traffic into the pages that were working best with the registration funnel they had about 12 or 13 different input fields that People have to fill information in.

We really just search for those like what do you actually need, and that was about 6, so they could still put that information in monster in the platform, but during the registration it was that we also reorganize. This was a bit more intuitive for users as well in terms of the email activation. So one of the problems that they were having was a lot of their activation. Emails were getting hit by spam filters, so we got DKIM authentication and this improved email deliverability.

We also rearranged the subject line, so it was cleared. You need to click this to continue and that brought up between step 1 registration and step to email activation numbers by 6 percent. In terms of the next step of the personal data and the KYC, we work with them to rearrange the process and also they had to kind of re engineer some of the elements with their kyc provider. But once we did this, you know they were losing in 52, sorry 48 percent of people weren’t peak, passing kyc.

They were just getting to that step, looking at it and going no. This is too complex and at the end of doing this as well, that went up to 75 percent, so we improved the numbers by 35 percent just by reengineering that also what they had a two-factor authentication step. This point here was causing a lot of problems. They were losing over 30 percent of people. So if you do the maths here, you know you’ve retired some people coming in.

They were losing six percent at Step, two at Step: four, they were losing 30 odd percents and then it stepped five or six they’re losing 30 percent there as well. You know the funnel there was losing because of its design over half of the people that were going through. Now we had to work with a marketing team, their product management team, the development team. But overall we did it led to an improvement of 40 percent of customers gone through the process and from the same spend and the same activities.

We brought their sales up by 20 % as well. We also then caught the blogs they were using by 50 %. So that in weed less overhead time effort whole shabang there as well. So that’s the end of the presentation. We have a booth inside in the hall we’re offering an heiress free consultation and a chance to win a nice bottle of Irish teens whiskey here as well. So if you want, if you’re interested in having a chat about your project and tracking an accreditation we’re more than happy to have a child with you next door, so thank you very much.

Everyone for your time and attention appreciate your listening. Sure hey. Does anyone have any questions, so I’m black and blinded here, so I can’t see no fair enough. The same approach you can map in serve any sort of yeah. It does so we learned this in articlegames. You know, and article games had a very complex. You know if people get to register, they had to download six or seven gigs, which you couldn’t track.

Then they’d have to login, go through character. Creation play the game, go through all the products there as well. So the same approach works for the onboarding process, but then equally it works for applications as well end to end so cool okay. Thank you very much, oh okay. So so the question was what what programs, what programs you used to track user behavior analytics yeah? So the approach that we’re doing can integrate in with any of those visualization tools or analytics it’s more methodology that feeds it straight into your database.

So there’s a bit of coding: that’s required at the start, to get it integrated in your site and then usually what we do is we’d have sometimes use a Mongo database, some people using Splunk some people using SQL once the data is in there. We structure the reports and that can feed into any sort of visualization tool that you have so the approach that we’re taking there’s no like analytics pixels anything.

It’s just there’s a methodology that once you get it in it’s in there and then you can then use whatever tools. You want to use whether it’s a CSV report or an SQL makes panel whatever. It is actually visualize that data okay, we’re going to have to leave it there. Thank you so much Jamie


 

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Bitcoin Investing For Beginners 2020: Can Bitcoin Be Shut Down? A Naysayer’s Guide to BTC

We’re going to talk about Bitcoin, investing for beginners and we’re looking at can Bitcoin be shut down. This is a naysayers guide to Bitcoin. So should I buy Bitcoin now or wait we’re going to give you ideas to help you take profits and avoid losses? Can we get this article to 99 likes smash that, like button, it really helps us out.

I’r not a financial adviser. What you’re about to hear this is not financial advice. This is my opinion, so the first thing we’re going to look at is the Bitcoin market. Now, today is 6:38 in the morning Central Standard Time, and it is April. 27Th. 2020. It’s a beautiful Monday. So right now bitcoin is trading at seven thousand, seven hundred and nine dollars. It’s up almost 1 %, just shy of 1 %, and you can see here that the Bitcoin dominance is 64 % and changing as we speak.

Now. The dominance is something that we’re going to talk about a little bit later in this article. It becomes part of our subject, so we may even come back to this slide. Now the subject of this article often oftentimes my articles, we try and take three or four different articles. This article, I’m going to focus on just the one can Bitcoin be shut down. This is a naysayers guide to BTC. The Bitcoin network has been standing strong for more than a decade and it would take a highly coordinated effort from competing players to bring it down.

Bitcoins future has many possible outcomes, but death is among the least likely of them all kind of like the image here. With a gravestone with Bitcoin on it, so key takeaways Bitcoin has been running 24/7 without incident from more than 10 years straight. There are more than 10,000 Bitcoin nodes standard scattered all across the globe, and governments can prohibit Bitcoin, but they cannot kill it.

So, let’s get back to the 10,000 Bitcoin nodes. The way Bitcoin runs is somebody sets up. What’s called a node, a node is they’re running a computer, that’s connected to the internet and on that computer is running software that makes the Bitcoin network exist. So, in order to really destroy Bitcoin, you have to shut down all of the existing nodes. If there were no nodes out there, that was running the Bitcoin software, then Bitcoin would cease to exist, but because there’s thousands of nodes scattered all over the world, it makes Bitcoin actually exist and gives it the possibility of thriving the people who wrote the Bitcoin software Made it what’s called open source and that simply means that anybody can download it, install it on their computer and run it at no cost to them.

You don’t have to pay Microsoft, for example, in order to buy the software and run it. You can just run it without paying any specific, individual or entity. So Bitcoin has been dealing with skeptics and naysayers for more than a decade when Satoshi Nakamoto first shared his life’s work publicly, it was met with little enthusiasm. Instead, the feedback was mostly critical and listed all the ways the idea would fail.

You ever had a good idea and everybody started telling you how come this is not going to work well. Satoshi Nakamoto went through the same thing since then. The protocol is improved and hundreds. If not thousands of companies have been built on Bitcoin. In fact, you know when you say that, did you know that Microsoft Starbucks and the company that owns the New York Stock Exchange teamed up spent half a billion dollars and four years building? What’s called that be a KKT? The backt exchange was built by those three companies, Microsoft, Starbucks and the company that owns the New York Stock Exchange.

All three are multi-billion dollar companies and they’ve invested half a million dollars into creating a Bitcoin exchange and now they’re soon going to be releasing an app for your phone. That will let you buy and sell Bitcoin along with a whole bunch of other things, and so it’s actually quite interesting so when they say that a lot hundreds, if not thousands of companies have been built on Bitcoin.

That’s just one example. There are so many examples of other companies that are built on it. Still. The criticism remains constant high profile, economic economists, bankers investment, fund managers, everyone except the Queen of England, really have voiced their opinions and prophesized bitcoins inevitable demise. But the interesting thing is is that to date none of them have accurately democ predicted demise of Bitcoin one decade and 115 exha hashes of hash rate per second and roughly a hundred and fifty billion dollars a market capitalization later, and it can be said that such Cricket critics stand corrected.

Well, let me break this down a little bit. So a hundred and fifteen exa hashes, that’s the measure of the computing power. That’s currently mining Bitcoin, it’s a combination of the nodes and then also includes the hash rate of miners, and so miners connect to nodes and and create the entire Bitcoin network and there’s a way that they measure that processing power, that computing power and that measurement is Called EXA hashes, so, let’s for a moment, take a look at the chart, so this is the last 1 year.

This is the one year chart of EXA hashes and you can see how it starts here. At 45, EXA hashes a year ago, hit a peak of a hundred and twenty-one and then at the same time that everything crashed as far as the stock market and other assets, including the computing power on the Bitcoin network, also crashed. And then you can see that it’s come back up a hundred and eighteen versus a hundred and twenty one.

So it came very close to this previous high and then dropped down just a little bit over over the recent few days and weeks. And so I want to share with you a couple of other charts, so this is the one-year chart. Let’s take a look at what it looks like over the last three years and so three years ago the computing power on the Bitcoin network was 3.9 x, a — hashes and recently it peaked at 121, EXA hashes, and so that’s a I don’t know how many Times that is it’s not quite a hundred times because it would have to have been at one point to for it to have been a hundred times, but that’s a significant increase in the amount of computing power.

Think of it this way, every time it goes up. Somebody else has added another computer to the Bitcoin network and every time you add another computer to the Bitcoin network, that’s one more computer that would have to be turned off in order to shut down the Bitcoin network, and so this EXA hash, this hash rate measurement, Is really in a way to measure all of the processing power, because one computer has a lot of processing power and another computer has only a tiny bit of processing power.

But every single computer adds up together to give us a total number, and I don’t want to muddy the waters too much, but there’s lots of different ways that miners use equipment to mine Bitcoin. Some of them are computers. Some of them are what’s called graphic cards, so in your computer there’s a card that drives the monitor and they call that a graphics card, and so some people use graphic cards in order to mine Bitcoin, and that adds to the hash rate.

Another thing that people will do is they’ll buy, what’s called a sick mind asi see. I see I don’t remember how to spell it. The bottom line, an ASIC minor, is an application-specific integrated circuit, and that means that they built this small box they’re, usually a little bit smaller than a shoebox in size for an ASIC minor and those things have chips in them. That the only purpose for that chip is to mine, Bitcoin or mine, whatever cryptocurrency it was built for and those chips are anywhere from 30 to 40 times faster than using a graphic arts.

Graphic cards were at one point, one of the fastest ways to mine Bitcoin provided the most hash rate to mine Bitcoin, but ASIC miners came around. I don’t know if it was three years ago or five years ago, but several years ago, ASIC miners started becoming more and more popular because they had more hash rate and you could buy them for a lower price than you could get comparable hash rate out of Gpu miners out of graphic card miners, and so anyway, the bottom line to this whole story is: you can see how the hash rate has been growing over the years.

In fact, if we click on this link here for the all-time graph, you can see how it was for for many many years. It was significantly less than one. I mean all the way through here, it’s less than one tera hash and then in here around August 2016. In fact, here’s where, from April of 2016 to today it’s increased by 100 times to get to that 121 EXA hash. So anyway, the bottom line is is because of the hash rate.

That’s measuring the amount of computing powder around the world makes it extremely difficult to shut down all of those computers, especially when I mean they’re, located and virtually very close to every country around the world, and so just makes it quite difficult to shut down the entire Network, so what could possibly kill? Bitcoin one strategy is the so-called 51 % attack, where a malicious entity gains control over the majority of the networks, hash rate and effectively takes over the system.

51 attend 51 % attacks are one of the most legitimate threats to Bitcoin. The centralized manufacturing of mining equipment can lead to some bad outcomes, but the most dangerous scenario is one where there is a concentration of hash power. Specifically, one company may control more than half of the hash power on the network. Consider the cost of executing such an operation at the time of this writing.

It costs more than half a million dollars per hour to sustain a 51 % attack on Bitcoin, and so what are they? What do it? What does this really mean? What they’re talking about is, if you bought enough computers, that your total hash rate was greater than 51 % of the hash rate on the entire network. This would allow you, because you had control over it, to rewrite some of the data in the network, thereby granting yourself a lot of Bitcoin and by giving yourself a whole bunch of Bitcoin, all of a sudden that makes you wealthy or wealthier, but the point that They’re, making here is that the cost, in order to do that is, is very, very significant.

In fact, according to this website, which is crypto, 51 crypto 51 says that a 51 % attack on Bitcoin would currently cost 847 thousand dollars and 98 and 988 dollars for a one hour attack it’s. In other words, it’s almost a million dollars per hour. In order to attack the network, but that’s not the only hurdle you have to overcome not just having more hash rate, more hash power than anybody else in the world, but let’s dig into this a little bit further.

The attacker would also need to coordinate all of these features without any one noticing, with over 10,000 Bitcoin nodes operating around the world, it would be near impossible to sneak a 51 % attack by so many observers. In other words, you may be able to create enough hash power to have more than 51 % of the total hash rate on the Bitcoin network. The problem you’ll have is all of the other 10,000 nodes operating around the world.

Going hey, wait a minute. Somebody just did something they shouldn’t be doing, and if all these other people noticed, then that that destroys your opportunity for making money and it destroys it for several different reasons. One people would stop using the Bitcoin network because you or whoever the person was that had dial, that hash power hacked it and altered it, so that they had an advantage. And then the second thing is: is that all these people running these nodes would simply merge off a new version of Bitcoin, deleting the records where you had moved that money to your own account.

Thus, deleting all the advantage that you spent all that money getting and they would just fork off Bitcoin into a brand new fork and and start mining it. In fact, if you look at look back over history, a lot of the not a lot but a number of the existing cryptocurrencies existed because they are Forks where they took the existing Bitcoin code and they made some tweaks and they modified it a little bit.

And then they created a brand new Kirke cryptocurrency, but that cryptocurrency was based off of the previous software and the previous blockchain database that was used for Bitcoin up to the point in time where they forked it off of the existing network, the existing blockchain and database. That runs the current version of Bitcoin, and so not only would they have the issue of trying to make sure that they had 51 % of the power, but they also really need to do it in a way that no one else would notice it, which is Pretty highly unlikely, given that there’s over 10,000 nodes now this picture doesn’t give you a definitive conclusion on every single country that the bitcoin is in, because some of these dots are so small that they can’t actually cannot actually be seen in the map.

There’s more than 98 countries around the world that currently have bitcoin nodes, but here’s another thing: if you were running a Bitcoin node in a country where you may be breaking some of the laws, then you’re going to use a VPN network to hide the physical location Of your soft of your hardware and thus you’ll, look like you were in mining from a different country when the reality is is maybe you were located in a country that was not so friendly to Bitcoin and you just chose to hide it.

So there’s there’s a likelihood that many of these countries that don’t show any Bitcoin nodes actually do have Bitcoin nodes, because the owners are actually hiding the fact that they’re in there in a Bitcoin node. But you can see by these larger circles and the darkness of the circles where a lot of the hash hash rate or Bitcoin nodes are located. We can see a lot in the United States. We can see a lot of them in in Europe and around the European Union.

We can see quite a few down around Hong Kong and Singapore and other Asian countries and so and then that we can see a number down here in Australia and there’s quite a number throughout China in different areas throughout China and even into Russia and so they’re. All over the place, these are that kind of the Russian nodes, and then a lot of the Chinese ones are down in this area. So just a large log Bitcoin has built up a huge network and it’s because of that huge network that the entire system has a lot of security.

Once the alarms had been rung around social media, many users would begin selling their holdings recovering the five hundred and sixty five hundred and fifty six thousand spent on attack. The network thus becomes difficult and that figure has changed to over $ 800,000. So once people started selling off driving the price down there, the people who did the hack would have a tough time recovering the money that they spent in order to hack the network.

Bitcoin core developers would also fork the protocol around the attackers before this scenario ran its full course concluding. It becomes quickly. It quickly becomes clear that it is. This is reasonably in an ineffective venture, assuming that the attacker wants to overtake the network for profit. What if they have no ulterior motive except to destroy Bitcoin, a 51 % attack still wouldn’t be the way to go, even though bitcoins price would undoubtedly suffer damage in the short run, bitcoins network can easily mitigate such threats and continue to operate with minimal incident.

So can’t beat Bitcoin be banned by different countries. Absolutely there’s been countries out there, all along that have banned it. China is a great example of that. China has had this love-hate relationship with Bitcoin. They love the miners, they hate people, doing exchanges and buying and trading and putting their money and finances into Bitcoin. And so, while it’s legal to mine, Bitcoin, it’s illegal to buy Bitcoin, which is just a strange thing, sure it can there’s nothing stopping regulators in any country from around the world from prohibiting the use of Bitcoin in case there are any constitutional considerations.

Regulators can still find ways to make Bitcoin a cumbersome and unappealing to use as possible, but can regulatory agencies ban destroy Bitcoin? No, not really, it would undoubtedly have some short-term price implications, but the network and the protocol would remain intact again. They would just literally have to go all around the world to all these different countries, shutting down the nodes and order to actually achieve that, and so, while they may be able to make it ban, it make it difficult for people to buy it.

It would affect the price in a for a period of time, but the end result is that the protocol would remain intact. Some experts in the field, like the author of the Bitcoin standard, have even argued that the banning the top cryptocurrency could have a positive effect on adoption. A social phenomenon known as the Streisand effect attempting to hide, ban or even cover something up. Inadvertently draws more attention and interest from onlookers, and so you know it’s kind of like trying to ban drugs.

Every country in the world has laws against drugs, and yet they can’t seem to completely stop drugs from getting into their countries and from people actually purchasing those drugs. So what about Bitcoin competition theoretically possible, but highly unlikely bitcoins appeal, doesn’t originate from its technological superiority over cryptocurrencies on the market. Many would argue that Bitcoin isn’t technically superior and that other cryptocurrencies have better features, including faster transactions and greater flexibility, and that’s definitely true.

There’s other cryptocurrencies that have been created since Bitcoin began that in many different ways have better features. Greater flexibility are much faster transactions, etc, etc. But the reason why bitcoin is still King out there is simply because so many people are using it. It’s a more of a what’s called a network effect and what a network effect talks about is sometimes the best technology is not the technology that everybody uses.

Let’s take Windows is an example. When Windows came out in the 90s Windows was not the best operating system out there, there were other operating systems that existed that were actually in many ways better than Windows. In fact, then, better than microsoft’s um disk operating system do s. Msd OS was the operating system during the 80s for Microsoft, and then they came out with Windows and when Windows first came out in the 90s, it was very, very clunky.

It was very difficult and cumbersome to use Apple’s. Software was much much better than Windows, but here’s the catch Windows, Microsoft’s operating system started as a as the software that IBM personal computers were running on in the 80s and because of the name of IBM backing those pcs and Microsoft. Writing the operating system. For those pcs, Microsoft gained market dominance, in other words, 80 %, 90 % of the computers out.

There ran on Microsoft’s operating system and because it was such a large number, it wasn’t any longer about which one was the best it was about which one does everybody use, and so, as a result, because Microsoft had such a market dominance, it continued on and Windows Is the most used computer operating system out there, even though it hasn’t always been the best? So it’s not always about being the best sometimes adoption or the number of people using something using a particular thing is far more important.

You know even take a look at today. We have CD players, but there was a day back in the 90s, where there were two different article formats. There was beta and VHS, and so when you went to Best Buy, you might buy a beta player in order to buy movies and play them at home, or you might buy a VHS player to play VHS tapes. Now the tapes that worked in the beta machines. Don’t work in the VHS machines.

The problem was: is that VHS, even though wasn’t beta was better quality beta had a better image quality beta was longer lasting. There were a number of good things about beta that made it a better two ecology than VHS, but the people who made beta charge so much money that beta never gained enough adoption. The people who made VHS they knew that their technology wasn’t as good, and so they just simply made it cheaper and because it was cheaper, a lot more people bought the VHS machines a lot a lot.

More manufacturers made the VHS machines, because that was another thing about Veda. Is they locked it in, and so they were the only company that sold it. That today, you can’t find a VHS or a betta machine out there, because both of them have been replaced by CDs and DVDs, but here’s the important thing to notice from that. It was more about adoption that made it the dominant player and not about which one was really better, and a lot of people miss that in their cryptocurrency conversations they’re so focused on which one is the better technology that they miss.

The fact that the one that has the greater adoption is oftentimes, the one that rules the roost, not because it’s better but because everybody uses it and right now, bitcoin is the one that has the 64 percent adoption. The vast majority of people who have investments in cryptocurrency have it invested in Bitcoin. In fact, earlier I was talking about the backed exchange. Bak KT backed has only one cryptocurrency on it.

Now, there’s over 2000 crypto currencies out there, but if you were a institution because backed only serves institutions, and so you have to have a lot of money in order to just be a customer on the backed exchange, you know if you have $ 100 you’re, not Going to be a customer for the backed exchange and the only cryptocurrency that the backed exchange offers is Bitcoin, which is just to me almost mind-blowing.

Why would they only offer one cryptocurrency? You would think that they would have a dozen or so, but that’s the way. It is today, I imagine, that down the road, the backed exchange will actually offer more choices in crypto currencies, so bitcoins value proposition lying somewhere else entirely. Bitcoin is the scarcest most widely adopted and most secure cryptocurrency on the market. Having enjoyed first mover advantage, its network effects are now the strongest which gives it an almost insurmountable edge over the competition network effects is just a fancy term to say: hey lots of people use this sucker, alright, so users still want Bitcoin.

Bitcoin has many layers of redundancy and it’s resistance to many types of attack. It cannot be shut down, hacked regulated out of existence or compromised for Bitcoin to die. It would have to be more of natural causes. People would have to stop using it because there are better, more secure and more practical options for storing value on the market. As for now, with 64 percent market dominance, bitcoin is king, and so just like VHS and beta, you can’t go and find anywhere.

That sells those machines and the article stores that used to rent those tapes have long gone they’re out of existence. Today, you can’t find a article store to rent a VHS or rent a beta tape in order to read a particular movie. It’s going to take the same sort of thing with Bitcoin for it to really disappear. It’ll be the sort of thing where something comes out: people start using it and stop using Bitcoin and over time.

The dominance that we see here just disappears and becomes something else entirely, and that’s what’ll cause people to shut down all of their machines and for the hash rate to drop back down to nothing is it’ll it’ll, be more about people just stop using it, and so We’re at this particular time, based on things like the hash rate over the last. Even if we go back to the three-year hash rate, we can see how it’s been just grown and grown growing growing quite significantly.

Unless that stops, Bitcoin is here for a long time. You know the long term it’s here to stay unless people stop using it. So that’s the article today again, I’m not a financial advisor. This is not financial advice. This is my opinion. How can I be of service to you? Do you have any questions? Do you have any things that you said you just you you want to talk about? Do you have anything that you’re curious about, or do you disagree with what I’ve said? I would love to hear your polite disagreements because look hey you know things.

I don’t know. I know things you don’t know and when we share what we know together we’re going to grow smarter together, I want to grow smarter together with you. So hey. Please share it. What you know down in the comments below in the meantime like subscribe and huddle, and I hope that you have a fantastic day –