Completing the CAPTCHA proves to us that you’re a human and gives you access to our platform. Oct 24, 2023 IST2 Min Read Gains in value for cryptocurrencies follow that age-old law of supply and demand. In the absence of demand, digital assets hold little value. However, the reasons behind demand can vary. Traders in China intent on circumventing restrictive regulatory controls might (in fact, did) turn to Bitcoin, thereby sparking increased demand. Similarly, Venezuelans concerned about soaring inflation and a devalued bolívar turned to Bitcoin, which increased its demand and value bitcoin casino no deposit bonus keno as a result. Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8 Taking all of this into account, we can use Metcalfe’s Law to calculate the value of Bitcoin. Metcalfe’s law is founded on a mathematical tautology that describes connectivity among ’n’ users. As more individuals join a network, their contributions to the network’s value are non-linear: the network’s worth is equal to the square of the number of users. Metcalfe’s law has been empirically validated in its ability to value a variety of network effect technologies and businesses (Madureira, A., den Hartog, F., Bouwman, H., Baken, N. 2013).