Quote from: digitalindustry on May 09, 2013, 03:51:55 PM

Quote from: bootlace on May 09, 2013, 02:08:20 PM

Quote

A natural monopoly by contrast is a condition on the cost-technology of an industry whereby it is most efficient (involving the lowest long-run average cost) for production to be concentrated in a single firm.

a couple of tiny little problems - you completely contradicted yourself, you posted the definition of a "Natural monopoly" , too , ah? sound smart?

an example of a natural monopoly type effect is say "Apple iPhone" (pre iPhone 5 and Samsung)

so you are saying that this alt coin spam is in effect a "Natural monopoly" ..

i'll just get you to explain that for me ok...

I copy/pasted the definition from Wikipedia, not trying to be smart at all.. I wouldn't consider the Apple iPhone a natural monopoly back in the day, because them having control of the full smartphone market is not beneficial for the users as they can charge more, stop being innovative, get lazy etc..

For a new internet currency like Bitcoin - it is not very useful to have many competing clones because the purpose of a currency is to be able to conduct trade on as broad a market as possible. Imagine if new forms of the internet popped up every day that required a new form of computer, new DNS system, new usage method, new software to run it. And imagine this happened around the time when the general public weren't even convinced at the necessity of even having something called the internet. Then you might be able to envision what Bitcoin is facing.