AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Macro Expert Tom Lee | What's Next For Markets?
Bankless
Understanding Bitcoin: Network Effects and Youthful Innovation
4min Snip
00:00
Summary
Transcript
Episode notes
Bitcoin's price movement can be primarily explained through two key factors: network effects and transaction activity per wallet. The exponential benefits derived from an increasing number of wallets align with Metcalfe's law, demonstrating that price rises correlate significantly with user adoption. Analysis from 2017 suggested that a 30% annual increase in wallets could project Bitcoin's price to $25,000 by 2022, highlighting a general skepticism among traditional investors who are typically older and less open to disruptive technologies. Historical parallels with the growth of cell phones illustrate how younger generations recognize the utility of new technologies, while established investors often resist change. This generational dynamic results in a negative bias towards cryptocurrencies, as they challenge the traditional banking system.
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode