Encyclopedia of Opinion
Question
Is Bitcoin the future?
Position1 of 2›
Yes, Bitcoin is the future
Argument1 of 5›

The argument for Bitcoin through Metcalf’s law

Metcalf's law dictates that a network's value depends on the volume of users.

The argument

A telephone is worthless if only one person has one. It has very limited use if only two people have one. But if everyone in the world has a telephone, then the network becomes valuable. The same applies to Bitcoin. As more users buy Bitcoin and use it as both a currency and store of value, the utility of Bitcoin increases. 94% of Bitcoin’s increase in value since 2014 can be directly attributed to the principles of Metcalf’s law and the expansion in user volume. Therefore, providing the number of users continues to increase, Bitcoin will remain a prominent and desirable currency.

Context

Metcalf’s law dictates that the value of a network is dependent on the number of users in that network.

Premises

[P1]By Metcalfe's law, a network's value rises with its number of users — a telephone is worthless to one owner but valuable once everyone has one — and the same applies to Bitcoin as more people adopt it as currency and store of value. [P2] The body cites that 94% of Bitcoin's increase in value since 2014 can be attributed to Metcalfe's law and growth in user volume, so continued user growth means continued value. [C] Because Bitcoin's utility grows with its expanding user base, Bitcoin is the future.

Counter-arguments

Bitcoin use is not increasing. It peaked when the cryptocurrency bubble was in full swing in 2017. However, now, the number of people using Bitcoin, both as a liquid currency and investment tool, is plateauing at best, and decreasing in some cases. Many retailers that used to offer Bitcoin as a payment option have since abandoned the idea. Of those that kept it, a large portion report that almost nobody uses the currency.

Rejecting the premises

[Rejecting P2] The number of Bitcoin users is not increasing.