
I just got into an interesting Twitter conversation with Marc Andreessen, who wrote a New York Times essay on why Bitcoin is so important to the future of the Internet, because I disagreed on one point he made there:
Critics of Bitcoin point to limited usage by ordinary consumers and merchants, but that same criticism was leveled against PCs and the Internet at the same stage. Every day, more and more consumers and merchants are buying, using and selling Bitcoin, all around the world. The overall numbers are still small, but they are growing quickly.
But this is provably wrong, as I pointed out to Andreessen on Twitter: This chart of Bitcoin transactions is not only not growing, it's currently smaller than it was last year. Andreessen's reply to my point (captured above):
"I have broader definition of adoption, including new merchants, new developers, new entrepreneurs, etc."
And he is right that Bitcoin is starting to gain more and more of those things. But as I replied (and explained in detail here), this argument was also made by many Second Life boosters during SL's hype wave, when critics began pointing out SL's low user numbers. Because while Second Life usage was relatively small in contrast to the "It's the next generation of the Internet" rhetoric driving the hype, Second Life at that time also had new merchants, new developers, new entrepreneurs, etc.
Here's just a few headlines from that period (roughly 2006-2009):