Introducing Network Value to Metcalfe (NVM) ratio and using it to identify and predict price bubbles

Dmitry Kalichkin
May 23, 2018 · 3 min read

Summary

Our goal was to estimate whether current Bitcoin price is supported by activity on the network. To do this we have built robust upper and lower bounds for Bitcoin Network Value, based on a number of Daily Active Addresses (DAA), using different variations of Metcalfe’s Law. Using these bounds, we have defined bottom-up valuation of the Bitcoin network as a function of DAA.

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Disclaimer: none of the statements in the article should be considered investment advice. Due to the various risks and uncertainties, actual performance of the assets may differ materially from that reflected or contemplated in forward-looking statements.

Cryptolab Capital

Long-short digital asset investment fund

Dmitry Kalichkin

Written by

Chief Research Officer @ Cryptolab Capital. Technology investor, cryptoasset believer, snowboarder, Stanford grad

Cryptolab Capital

Long-short digital asset investment fund