Business Studies, asked by faizanbhat4955, 1 year ago

Where does bitcoin lie in the diffusin of innovation curve?

Answers

Answered by SanjivanMukherjee
0
Giving early adopters the first access to new technologies can help diffuse those technologies among the masses. A notable example is Google’s rollout of Gmail: In 2004, about 1,000 select users were given exclusive access and told to invite others. This campaign was so successful that at one point before the email service went mainstream Gmail invites were selling for more than $150 on eBay.

But what if early adopters are, in contrast, denied access at the initial stage of a rollout? That could greatly stifle broader diffusion, according to a unique new study by MIT researchers that examines adoption rates of the cryptocurrency Bitcoin among MIT students.

In 2014, the MIT Bitcoin Project offered all incoming freshman access to $100 worth of bitcoins. MIT Sloan School of Management professors Christian Catalini and Catherine Tucker saw this as a “once-in-a-lifetime opportunity” to study the role of early adopters in spreading technology in a controlled environment, says Catalini, who is the Fred Kayne Career Development Professor of Entrepreneurship. Tucker is the Sloan Distinguished Professor of Management.

During the rollout, the researchers randomly delayed giving half the students their bitcoin allotment by a couple of weeks. Students who were identified as early adopters of Bitcoin, but whose payment was delayed, cashed out their balance and abandoned the technology at nearly twice the rate of early adopters who received their payment earlier. The early adopters who cashed out also influenced those around them to do the same in high numbers.

Cash-out rates among early adopters were also amplified in dorms, especially smaller dorms where the delayed or non-delayed status of students would be more well-known, indicating that early adopters need to feel like they are part of an exclusive group in order to stick with new technologies.

Published today in Science, the paper is the first to examine what happens when natural early adopters (NEAs) are purposely denied first, exclusive access to new technologies, Catalini says. “When you study new technologies, how fast and in what ways [they] diffuse through society, you never get to see what would have happened if things had unfolded differently,” he says.

Answered by ImpressAgreeable4985
0

Answer:

in the “Innovator” phase

Explanation:

The conclusion is that Bitcoin is in the “Innovator” phase, with initial signs of switching to the “Early Adopter” phase. Rogers' theories on “Diffusion of Innovation” are a tool that can be used to understand the current stage of adoption.

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