Concept

Lognormal values from Metcalfe's Law in a generalized difference equation

To match a curve created from Metcalfe's Law with the data and prevent autocorrelation, a regression model that acts as a generalized difference equation ln(𝑌𝑡) − 𝜌ln(𝑌𝑡−1) = 𝑎0(1 − 𝜌) + 𝛽0 (ln(𝑋𝑡) − 𝜌ln( 𝑋𝑡 −1))+ 𝑢𝑡 (where 𝑌𝑡 = bitcoin price) is used.

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Updated 2022-03-17

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