Bitcoin Analyst Disputes Metcalfe Value as Network Growth Indicator

• Willy Woo has downplayed the significance of the Metcalfe Value indicator.
• The indicator claimed Bitcoin’s network growth has stagnated since May 2021.
• Metcalfe Value indicator assumes all Bitcoin network’s newcomers to be equal.

Bitcoin analyst Willy Woo has challenged the significance of the Metcalfe Value in assessing Bitcoin’s growth.

In an X post responding to Alex, head of financial assets at SFO, Woo explained why relying on Metcalfe Value to track Bitcoin’s growth may be misleading.

IMO Metcalfe value is broken in 2 ways… (1) broken thesis, plus (2) a broken way to measure that broken thesis.

1) It assumes the value of the network grows exponentially per person that joins. Metcalfe was intended to model the value of a communication network, where this…

— Willy Woo (@woonomic) July 2, 2024

Alex’s initial post revealed that Bitcoin’s Metcalfe Value currently sits around $28,000, mirroring the level seen in May 2021. This similarity suggested a lack of progress in Bitcoin’s network adoption over three years.

Refuting this idea, Woo argued that the Metcalfe Value metric is flawed in two ways: “a broken thesis, and a broken way to measure t…

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