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Metcalfe’s Law Meaning

A principle from network theory stating that the value of a telecommunications network is proportional to the square of the number of connected users (V∝n2). Simply put: the more people use a network, the more valuable it becomes for everyone.

This law is often used to explain the exponential growth of Bitcoin’s price. A phone is useless if you are the only one who has one.

As the number of users grows linearly, the utility of the network grows quadratically.

This is why projects focus so heavily on user adoption and developer activity.

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