Metcalfe’s Law and the Cryptocosm

Techies will recognize this as Metcalfe’s Law. It’s named after Robert Metcalfe, an internet pioneer who co-invented the ethernet — the technology that delivers internet signals to your wired devices. But it was actually George Gilder who coined the name Metcalfe’s Law, based on a presentation Metcalfe had given in 1980. Metcalfe’s Law can be applied to all sorts of technologies, including cryptocurrencies. The very first Bitcoin was pretty worthless, since no one knew what to do with it. But as more people jumped on the craze — and more places began accepting Bitcoin as payment — its utility increased, increasing its value.