Since crypto-currencies are token based payment systems on the internet, it follows that their value will increase exponential with their increased use.
This in turn has been used to defend the current price of Bitcoin. However, there is one thing about crypto that this particular defenders of Bitcoin's astronomic rise in price has left out.
Crypto tokens represent both ownership of the network and the use there of. A Bitcoin account does not represent a user, but a potential user. Opening a Bitcoin account does not in itself represent usage, nor does the purchase of Bitcoins represent usage. It represents ownership.
It is only when crypto is used to perform transactions between external accounts, or in trade for something other than crypto that we can say that we are dealing with usage.
By all accounts, the vast majority of crypto holders are owners with no intention to use the crypto for anything but speculation. The user base is extremely small.
Furthermore, it is well known that Bitcoin cannot ever function as a convenient currency. As a technology, it has already become obsolete. The use of Bitcoin in commerce is therefore destined to go to zero in the not too distant future.
It follows from this, using Metcalfe's Law, that Bitcoin will go to zero. The large number of nodes in the Bitcoin network has nothing to do with adaption of Bitcoin as a currency. It is all speculation.
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| Metcalfe network |
By Woody993 at English Wikipedia - Transferred from en.wikipedia to Commons., CC0, Link
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