By Willy Woo @ woobull.com
[Editors Note: On my youtube channel I often talk about how I believe the Bitcoin price is undervalued against the Metcalfe value of the Bitcoin Network.
As a reminder Metcalfe’s Law states the value of a network is proportional to the number of members squared.
In my opinion the reason for this divergence and disconnect was the due to the cataclysmic Mt.Gox Bitcoin exchange collapse in Mid 2014, which the price has still yet to recover from.
Based on this, it could be argued that now may be a good time to invest in Bitcoin as it appears to still be trading at a discount to its underlying net asset value or Metcalfe value.
In addition, shown on the chart above, the ratio of Metcalfe value compared to the recent price was recently sitting at 10-1. Based on this we can predict that for the current price of Bitcoin begin to come back into line with the Metcalfe value of the Network ,we could see prices move up to and around the $2500 – $5000 mark or around $40bn-$80bn.
Below is Willy Woo’s analysis on Bitcoin Metcalfe value…