Bitcoin’s price and ecosystem benefit from network effects. As more users join, demand pressure increases the price of bitcoin, which in turn attracts more buyers in a self-reinforcing cycle.

Jared Ecker is a researcher and fact-checker. He possesses over a decade of experience in the Nuclear and National Defense sectors resolving issues on platforms as varied as stealth bombers to UAVs.

Recently, we’ve been walking through common approaches to valuing bitcoin. Last week I wrote about estimating demand using the “total addressable market” method, which gauges a new product’s capacity ...

In 1980, Robert Metcalfe proposed that a single fax machine on its own is useless, but the value of many fax machines connected to one another results in a network effect that increases exponentially ...

Due to the proliferation of internet companies and related investments, many market participants got acquainted with the benefits of allocating capital to firms with network effects. In simple terms, ...