May 23, 2019 | 12:16 PM


28.11.2013What Will It Take For Bitcoin To Cross The Tipping Point?

Bitcoin seems to be unstoppable.

Panos Mourdoukoutas, Forbes.com

Bitcoin seems to be unstoppable. Today, the virtual currency crossed the $1000-mark, moving closer to the price of gold.

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What will it take for Bitcoin to cross over the “tipping point“—the moment the virtual currency reaches a critical mass of users, as described in the marketing literature by the Rogers Curve?

Everett Rogers argues that the diffusion of new products is a multi-stage process that proceeds in five stages: Awareness, interest, evaluation, trial, and adoption. In the beginning, product diffusion is slow as “innovators,” a small consumer group adopts the product. Then, product diffusion gains momentum, as “early adopters,” a larger consumer group connected to innovators, adopts the product.

Eventually, the diffusion reaches the early and the late majority, creating a cascade, soaring sales growth–the commercial success of the new product.

This means that products which eventually cross the tipping point follow the S-shaped or sigmoid curve, as observed in the diffusion of new durable products, whereby demand begins with a small group of consumers who appreciative the merits of the product, and  then extends to larger and larger groups until it reaches cascade.

For Bitcoin to reach cascade, it will take two things: A broad awareness of the benefits of the virtual currency to different users; and a widespread adoption as a medium of exchange. Last week Bitcoin got an earlier adopter, University of Nicosia. According to an announcement posted on its site www.unic.ac.cy/digitalcurrency, the largest private university in Cyprus is now accepting Bitcoin for payment of tuition and other fees, making it the first accredited university in the world to accept the increasingly popular digital currency.

In addition, the University is planning to introduce a MOOC on Digital Currency, which will lead to a Master of Science Degree in Digital Currency. That certainly raises product awareness.

Will others follow? It remains to be seen.

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