Metcalfe’s Law, as it is known, states that the value of a network increases exponentially with an increase in the number of people who use it. If you were the only person in the world with a phone, it wouldn’t be worth much because you can’t call anyone. If more than 1000 people have phones, then they can call each other and if this is how it works, the same happens with Bitcoin.
There are billions of people living in the world who are repressed by their governments in such a way that no matter how hard they work, they cannot generate wealth, as their governments continually inflate the value of their currency (think large portions of Asia, Africa and Latin America). But with Bitcoin, governments cannot effectively control it and cannot constantly print money to make the value go down.
Some of the recent sudden movements in Bitcoin are speculative, but the increase in value comes from the growth in the size of the network, which is still in the early stages of its life cycle and is that this form of money is an excellent investment o at least it has been for the last 5 years.
However, for the next 5 years, the success of Bitcoin investment, like everything else, will depend on supply and demand. According to the rules of the Bitcoin project, the supply of Bitcoin will increase by 1.75% Demand depends on adoption, but it is also theoretically a function of the BTC / USD price. If Bitcoin increases the price in US dollars, one would think that at least some of its holders would charge to buy cars, houses, etc and of course if the price falls, people should step in to buy. Generally speaking, the more people and corporations that adopt Bitcoin, the higher the price.
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