Download This PaperAn Alternative Model of Metcalfe's Law for Valuing Bitcoin
10 Pages Posted: 13 Dec 2017 Last revised: 19 Jan 2024
Date Written: January 30, 2018
Abstract
This short paper presents a new model of the market capitalization of Bitcoin that builds upon a standard model based upon Metcalfe’s Law by replacing it with Rogers' diffusion law. The model incorporates the logistic diffusion of the innovation, which could be extended to capture population and economic factors. This model appears to have some improved efficacy over the standard model. Using this model, some areas for future research are briefly discussed.
Keywords: Cryptocurrency, Metcalfe’s Law, Rogers' Law, Diffusion of Innovation
JEL Classification: C5, C22, G1
Suggested Citation: Suggested Citation
Van Vliet, Ben, An Alternative Model of Metcalfe's Law for Valuing Bitcoin (January 30, 2018). Economics Letters, Volume 165, April 2018, pp. 70-72, Available at SSRN: https://ssrn.com/abstract=3087398 or http://dx.doi.org/10.2139/ssrn.3087398
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.