By noting the predicted values of Bitcoin through Metcalfe's Law over a specific period, a discrepancy in these values could provide a basis for discovery of price manipulation, which could prove useful for analyzing other cryptocurrencies.

Detection of cryptocurrency price manipulation through Metcalfe's Law

- Detection of cryptocurrency price manipulation through Metcalfe's Law

Grinnell College

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

 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

- Network modeling of Metcalfe's Law
- Network growth of Bitcoin over time

Network economics of Metcalfe's Law

To examine the accuracy of Metcalfe's Law with bitcoin price, the distribution of daily transactions was measured.  Bitcoin price was observed to follow Metcalfe's Law with a R² of about 80%, which is indicative of a high degree of fit.

Learn Before

Related

Learn After