Carolina
Sun Sep 08 2024
|
5 answers
991
Can Metcalfe's law explain bitcoin's price formation?
Could Metcalfe's law, which states that the value of a network is proportional to the square of the number of users, truly offer insight into the intricate pricing dynamics of Bitcoin? Does the sheer growth in the number of participants on the Bitcoin network directly correlate to its soaring value, or are there other factors at play that complicate this straightforward relationship? And if so, how do we reconcile these potential discrepancies to gain a more holistic understanding of Bitcoin's price formation?
