Metcalfe's law approximates bitcoin's medium or long-term price, using the model of supply and demand. In the law, a network's importance is a function of a number of transaction pairs, and is represented through the formula n(n-1)/2.

Metcalfe's Law

Financial assets like bitcoin tend to be highly influenced by supply and demand. Bitcoin is also heavily influenced by user sentiment in the market and government regulations. Therefore, these are the factors that determine its volatility

Bitcoin volatility

Grinnell College

A cryptocurrency which uses blockchain as shared, distributed ledger to record and store its transactions. It is the first use of blockchain.

Bitcoin

 Peterson, Timothy, Metcalfe's Law as a Model for Bitcoin's Value (January 22, 2018). Alternative Investment Analyst Review, Q2 2018, Vol. 7, No. 2, 9-18., Available at SSRN: https://ssrn.com/abstract=3078248 or http://dx.doi.org/10.2139/ssrn.3078248 

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

- Transactions
- Timestamp Server
- Proof-of-Work
- Network
- Incentive
- Reclaiming Disk Space
- Simplified Payment Verification
- Combining and Splitting Value
- Privacy


Key Bitcoin Terms

Countries Adopting Bitcoin as Legal Tender

Bitcoin Pricing

- Bitcoin Whitepaper
- Metcalfe's Law as a Model for Bitcoin's Value
- The currency of the far-right: why neo-Nazis love bitcoin
- The Role of Cryptoassets as Legal Tender: The Example of El Salvador




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