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How Long Does It Take to Hit 50 Million Users?

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How Long Does It Take to Hit 50 Million Users?

How Long Does It Take to Hit 50 Million Users?

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

Imagine it’s the year 1960, and you’re an entrepreneur that’s about to launch the next big thing.

Let’s assume that your product is actually pretty revolutionary, and that you’re going to receive widespread buzz and word-of-mouth traction. How quickly do you think it could be adopted by millions of users?

Before the internet and consumption of digital goods, the use of a product could only spread as fast as you could manufacture the physical good. You would first need many millions of dollars in capital, a plant, a workforce, and inventory. Then, once the product is ready for distribution, you’d need mass advertising, word-of-mouth, sales channels, and press coverage to stand a chance.

Even then, if the product is really revolutionary, you’re looking at a decade or more for it to get widespread adoption.

Atoms Versus Bytes

Automobiles took 62 years to be adopted by 50 million users. The telephone took three years just to be in the homes of 50,000 people.

But these are both physical goods that need raw materials, skilled workers to produce, and economies of scale. They are made of atoms – and atoms must abide by the laws of physics.

In the modern era, you don’t have to produce a physical good. All you need to do is produce a useful piece of code that be replicated or re-used indefinitely at a marginal cost near zero, and it can spread like a wildfire.

Product / TechnologyTime it Took to Hit 50 Million Users
Airlines64 years
Automobiles62 years
Telephone50 years
Electricity46 years
Credit Cards28 years
Television22 years
ATMs18 years
Computers14 years
Mobile Phones12 years
Internet7 years
Facebook4 years
WeChat1 year
Pokemon Go19 days

As you can see, the transition from physical to digital goods has affected adoption rates, but so has the growing power of network effects.

Metcalfe’s Law

Metcalfe’s Law states the effect of a network is proportional to the square of the number of connected users of the system (n2).

Within the context above, it simply means that each additional user of a good or service adds additional value to others in that network. New goods or services in the digital realm can harness this network effect to gain users at unprecedented rates. It’s why social media, apps, and the internet were able to take off so quick.

It’s also why the augmented reality game Pokémon Go was able to reach a mind-blowing 50 million users in just 19 days.

And now, with unparalleled connectivity and more than four billion internet users globally, the next big thing could hit that milestone even faster than Pokémon Go. Instead of almost three weeks, it might do so in a few days – or even a few hours.

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What Would $5,000 Invested in Nvidia Be Worth Today?

Small fortunes have been made for those investing in Nvidia stock. But how much would have they earned if they bought before it skyrocketed?

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What Would $5,000 Invested in Nvidia Be Worth Today?

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Investing in Nvidia has been highly lucrative, especially for investors who got in early.

As America’s largest chipmaker, its stock price has soared given its critical role in powering AI. Last year alone, its share price jumped 272%, vaulting it into becoming one of the world’s most valuable companies.

This graphic shows how much a $5,000 investment in Nvidia would have grown over time, based on data from Yahoo Finance.

Investing in Nvidia Before the AI Boom

Below, we show how much an investment in Nvidia would have increased in value over the last several decades:

Year Invested (January 1st)Stock PriceStarting ValueValue Today (as of Feb 15, 2024)
2000$0.77$5,000$4,718,052
2010$3.85$5,000$943,610
2015$4.80$5,000$756,854
2020$59.11$5,000$61,460
2023$195.37$5,000$18,595

For those who bought in 2000, a $5,000 investment would be worth over $4.7 million today, with Nvidia’s stock price rising 94,261% over the time period.

At the time, Nvidia had just invented its graphics processing unit (GPU), which allowed computer graphics to render more seamlessly in video games and video editing. These high-performance units complete complex computing tasks, and Nvidia was creating leading technology at the time.

Over the last decade, Nvidia has increasingly focused on AI technology, with key developments launching as early as 2012. Yet it was not until 2020 when its share price really began to soar as the company’s end customer segments increasingly became data centers and cloud computing, alongside video games.

In fact, since 2020 alone, its share price has soared 1,129%—making a $5,000 investment worth twelve times as much today.

So far this year, its stock price shows no sign of stopping, driven by its outsized role in the AI chipmaking market. Roughly 70% of all chips are sold by Nvidia, outpacing key competitor AMD by a landslide.

The company’s Q4 revenues topped $22 billion, setting another historical record, amounting to a 265% year-over-year increase in revenues. In 2023, Nvidia sold 2.5 million chips with customers including OpenAI, Microsoft, Meta Platforms, and Alphabet. The price range for these chips can span anywhere from $16,000 to $100,000.

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