Metcalfe's Law as a Model for Bitcoin's Value

Metcalfe's Law as a Model for Bitcoin's Value

@financepresentations
@financepresentations
7 Followers
1 week ago 34
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Key Insights
  • The study analyzes Bitcoin's value using network economics and Metcalfe's Law, comparing it to the Italian gettone.
  • Traditional currency models fail with Bitcoin, which can be explained using mathematical laws related to network connectivity.
  • The research examines Bitcoin's price as a function of the network effect.
  • Metcalfe's Law helps explain Bitcoin's price formation, with an unexpected finding corroborating possible price manipulation in 2013.
  • It models Bitcoin's equilibrium value based on supply and demand factors.

Metcalfe's Law as a Model for Bitcoin's Value

@financepresentations1 week ago

Metcalfe’s Law as a Model for 
Bitcoin’s Value
Timothy F. Peterson, CAIA
Cane Island Alternative…
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Metcalfe's Law as a Model for Bitcoin's Value
Bitcoin
Bitcoin was the first digital currency …
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Quarter 2 • 2018 Metcalfe's Law as a Model for Bitcoin's Value
11
Italian Gettone Analogy
Bitcoi…
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Metcalfe's Law as a Model for Bitcoin's Value
Metcalfe himself applies a proportionality facto…
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Quarter 2 • 2018 Metcalfe's Law as a Model for Bitcoin's Value
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Exhibit 2: Number of Blockchain…
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Metcalfe's Law as a Model for Bitcoin's Value
Exhibit 4 
Exhibit 5 
These results are plotte…
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Quarter 2 • 2018 Metcalfe's Law as a Model for Bitcoin's Value
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Discussion of Results
We model…
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Metcalfe's Law as a Model for Bitcoin's Value
On the assumption that Metcalfe value is an indi…
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Quarter 2 • 2018 Metcalfe's Law as a Model for Bitcoin's Value
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5. In the cryptocurrency lexico…
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Metcalfe's Law as a Model for Bitcoin's Value
Madureira, A., F. den Hartog, H. Bouwman, and N.…
10/10


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