What’s the real value of a peer-to-peer network?

It’s not how many people you can reach.

It’s who you can count on when it matters most.

In places without rule of law, money looks different.

Fuel, booze, bullets - those are the mediums of exchange. Hungry? Guy’s got a goat. You trade five gallons of diesel and some whiskey shooters.

Turns out, those little airline bottles are gold. One NCO I worked with ended up buying pallets of them for his prepper stash. Why? Because when survival depends on trade, what matters is not volume, but value and trust.

To really understand peer-to-peer economics, you have to look where it’s life or death. These aren’t theoretical markets. These are real-time, high-stakes transactions between people who need information and goods and can’t afford to be wrong.

This is where Reed’s Law comes in. It’s not about how many people you can connect to (that’s Metcalfe’s Law). It’s about the value of tightly-knit subgroups that can actually get you what you need when it matters most.

Metcalfe’s Law says value = total possible connections.

Reed’s Law says value = total functional clusters.

Think of it like this:

Metcalfe is the phone book getting one new name.

Reed is your Rolodex getting one more supplier you trust.

And in a circular economy built on Bitcoin and NOSTR, Reed’s Law isn’t just academic, it’s actionable.

Because when you can buy meat, raw milk, tools, or design services from Bitcoiners you trust, you’ve exited the fragile web of third parties. You’re not stacking just sats. You’re stacking resilience.

In warzones, adding more contacts doesn’t matter if none of them deliver.

What matters is the consistency of trust within your cluster. That’s where safety comes from.

This is why the Bitcoin circular economy isn’t just about scaling.

It’s about depth, not breadth.

It’s about being a reliable node in a small, self-reinforcing loop.

Reed’s Law gives you the Bat Phone when you need something crucial. Not just more internet strangers to scroll past.

Metcalfe is the mass network.

Reed is your lifeline.

And building that lifeline is simple:

Just start transacting with a few Bitcoiners you respect.

Find the ones who deliver. Become one yourself.

That’s how we realize the peer-to-peer vision of Bitcoin.

Not someday. Now.

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Discussion

THE BAT PHONE!

Each person rejecting fiat is a step closer to freedom

Just wait until producers start being able to reject fiat en mass

I can't wait. 💪

Reed’s law people. Reed’s Law.

Understand this and the value of clusters so you can explain why NOSTR + Bitcoin changes everything.

nostr:nevent1qqsfx2fwh99e9nx9e37fp4d37epvwppy2ugpvpmt8mt3vle6a66jtuqlg64ep

#WB

Very nice analysis.

I've seen different point of view about the #nostr future and usage.

I agree with you, with little differences.

This network is based on app and relays.

Relays are host by some motivations (financial, politics, geek, activism, curiosity...).

It is his strength but also his weakness.

Some of dev / builder / supporter want their tool to be used, and the most possible, to be sure it will continue to exist.

Because a tool without user is more expose to die in long term than one with more and more users. You can see that with open source project that die, not because they are legacy or bad, but because they are only support by too few peoples.

#nostr have a hard base of coders for the moment and it is very good.

But bringing here some "light" and fresh flesh will also bring ideas, bring coders, bring people that will continue and improve the work actually done.

Bitcoin have a way to reward miners to mine and maintain the network.

Nostr don't have that yet.

So i also agree with the one who say it's also important to stay "open" to the world and welcome more people.

But it is a very interesting note, thank you for that !

But who will build the roads?

Well said!