You Misunderstood Ethereum
What most people are getting wrong about Ethereum
“Heavily undervalued”, “Totally game-changing”, etc. That’s what you’ll see on YouTube being said by all the famous Crypto YouTubers. Most of this enthusiasm and price speculation is due to EIP-1559. It’s as if Ethereum’s old, inflation-loving self has gone on a diet and emerged as a new, deflationary version. And if you’re like me, you are probably wondering what on earth this means for ETH’s price targets.
Insane ETH price targets are not something exclusive to YouTube influencers but also Wall Street Fund Managers like Cathie Wood (https://uk.finance.yahoo.com/news/cathie-woods-ark-invest-expects-173127727.html). What makes these claims outrageous in my opinion is that we’re still pretty much in the dark ages when it comes to predicting crypto prices. We’re still navigating through uncharted territories, relying on two trusty old maps: Metcalfe’s Law and the Stock-to-Flow Model.
What is Metcalfe’s Law?
You know how it’s way more fun to be at a packed concert or a buzzing party than hanging out by yourself? Well, Metcalfe’s Law is kind of the same idea, but for networks.
Here’s how it goes: the value of a network is proportional to the square of the number of users in that network. Sounds like math…
