Gilder's Law


George Gilder, the prominent futurist, was the advocate of Gilder's law. According to this law, the total bandwidth of communication systems triples over a twelve-month time period. The speed of growth for bandwidth is faster than computer power. This rapid growth has resulted in more information being sent over a single cable. DSL and cable modems are used to serve this purpose.


Gilder's mindset on technology had implications for a technology start-up as well as investment strategy. According to him, fiber networks with the ability to only transmit information become dominant forces. He also believed in the law of abundance. Many entrepreneurs sacrifice the abundant resources to reserve the scarce resources. For example, nowadays, bandwidth is more abundant than electricity. Therefore, it is better to start businesses or invest in businesses that generate and save more electricity. He also believed in the law of scarcity. Scare resources dictate consumer behavior. For example, time is a scarce resource and start-ups should think about business ideas that save consumer's time.