Metcalfe's Law This puppy never gets old and I came across Metcalfe's law (that the value of a network is proportional to the square of the nodes/users in the network) being mentioned again regarding Bitcoin on CNBC with a Hedge Fund Guru Tom Lee forecasting $25,000 price for Bitcoin! (He used the Bitcoin adoption rate... Continue Reading →
TheMartin Ratio for Cryptocurrencies. A question that is often asked is: "Given the very high volatility in cryptocurrencies ( 30 day standard deviation ranges have historically been between 60~600%!) which one is a better investment on a relative risk-return basis?"
The work below was recently done by a good friend and ex colleague of mine Dr Andrew Jim. It was completed during the most recent sell-off in Bitcoin, the result of yet another China ban. Using R programming language Andrew took the top 10 historical BTC max Drawdowns looking at the time it takes (in... Continue Reading →
Most people can intuitively understand why under Web1.0/Web2.0 that Facebook/Google have value whereas the underlying protocols that make up the Web (HTTP, TCP/IP etc) do not (or very little). Because of this it’s hard for many to understand the value proposition of the protocols driving the next iteration of the internet (Bitcoin/Ethereum etc). This old... Continue Reading →