Study: Metcalfe’s Law May Apply to Bitcoin Only in the Long Term
A new study has concluded that Metcalfe’s law may only be applicable to bitcoin for the long term. In the short term, the researchers found the validity of the law to be “questionable.”
Metcalfe’s Law Only Good For The Long Term
A new called Metcalfe’s law and herding behavior in the cryptocurrency market, authored by Danial Traian Pele and Miruna Mazurency-Marinescu-Pele has confirmed that Metcalfe’s law may only apply to bitcoin’s network in the long term.
The law stipulates that the value of a network is proportional to the square of the number of connected users of the system.
The researchers analyzed blockchain data from 2010 to 2018 and their results also showed potential for herding behavior. This is why they also used Log-Periodic Power Law (LPPL) model to determine the behavior of cryptocurrency exchange rates during bubble periods and to eventually predict the most probable time of a regime switch.
Ultimately, the researchers came to the following conclusion:
The results show, in the medium to long-run, the validity of Metcalfe’s law (the value of a network is proportional to the square of the number of connected users of the system) for the evaluation of cryptocurrencies; however, in the short-run, the validity of Metcalfe’s law for bitcoin is questionable.
In order to evaluate how and if Metcalfe’s law applies for bitcoin’s network, the researchers looked at the number of unique bitcoin addresses and their progression through the time of the study.
(Though would probably be another metric worth studying.)
As seen in the picture above, the number of unique addresses in bitcoin’s network has generally been growing in an upward trajectory until the end of 2017.
bitcoin’s price, on the other hand, for the most part, has been moving sideways. It catches up eventually towards the end of 2017 as well and decreases with the number of unique addresses in the following year.
This shows that while Metcalfe’s law might not be applicable for the short term, it does eventually apply.
What do you think of the recent findings regarding Metcalfe’s law applicability to bitcoin’s value? Don’t hesitate to let us know in the comments below!
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Bitcoinist has compiled a list of ten VPN providers that will gladly offer you their services for your bitcoin.
Why VPN?
One of the primary reasons for purchasing a service is to keep your online activity private. It is ironic, then, that some still choose to buy their VPN service via a payment method tantamount to a suitcase filled with marked bills and a transponder — which, if you’ve ever seen No Country for Old Men, you’ll know is a very bad idea.
The most commonly used online payment methods, PayPal and credit cards, are among the easiest to trace, funneling out to tax entities, third-party processors, and enormous — as well as enormously connected — financial institutions. As if this weren’t bad enough, PayPal and credit cards also charge steep that drain revenues from VPN providers, making them dependent on income that can, at the whim of the banks and legislation, vanish without a trace — unlike the information they will keep on you.
Looking for privacy along the entire transaction many consumers now opt for anonymous payment methods like bitcoin to purchase VPN services. With bitcoin, as long as you employ the full range of the system’s features — like and aliases — your transactions will not identify you.
Also, since bitcoin is a decentralized payment method, no corporation, government, or financial institution can shut it down. Lastly, bitcoin is fast, cheap, and safe: Its transactions wait on no clearing times, its transaction fees are often far lower than those of a standard credit card, and it provides excellent fraud protection.
Because of this, several prominent VPN providers now accept bitcoin payments (while some no longer accept credit card payments at all). Since the differences between these providers can be a bit nuanced, however, a can help you in figuring out which VPN is the best fit for you.
With more than 1250 servers in over 42 countries, TorGuard ranks highly among the elite VPN providers. It even works in countries where VPN protocols are government-filtered, such as Iran, China, Syria, and the UAE. However, there is no trial software and some consider the website a little confusing to navigate.
Private Internet Access
This VPN service is known for its minimalist efficiency. Ad-blocking, one-click activation, and fast performance are among its highlights, though a few users find its spare design off-putting.
IPVanish VPN
Solid speeds, a straightforward interface, and automatic IP address cycling are a few perks of IPVanish. It is spendier than some other VPNs, however, and though its interface is user-friendly, visually it leaves something to be desired.
Express VPN
Netflix, BitTorrent, and P2P are all accessible with the highly versatile Express VPN. Though international downloads are fast, in general this VPN tends to be on the slower side. Also, like IPVanish, it is expensive.
VPNArea
Registered in Bulgaria, hosted in Switzerland, and operating in 54 countries (including Saudi Arabia, South Africa, and Russia), VPNArea provides unlimited bandwidth and a kill switch system. VPNArea has been accused, however, of poor customer service and slow speeds in the more out-of-the-way countries.
Air VPN
No logs, port forwarding, and a stable connection make Air VPN a favorite among those wishing to protect their anonymity. Among its cons: It does not offer an abundance of server locations, and using the service can sometimes necessitate an advanced knowledge of VPN configuration.
IronSocket
This service is direct and easy to understand, and its users love the ability to download customized open VPN settings. Even so, some reviewers have cited its lack of special features (like a kill switch and DNS leak protection) as deal breakers.
Anonine
This VPN boasts IP shuffling, no restrictions, and a no-logging policy. Even so, its customer service has left a few users feeling less than satisfied.
SaferVPN
With a dedicated Chrome extension for added security, SaferVPN delivers a reliable performance and welcoming interface. On the downside, it does keep logs and requires additional payment to get more connections.
ShadeYou
ShadeYou is simple to use, allows five simultaneous connections, and its Dutch registration source guarantees maximum privacy by law. Some users have criticized small defects in its webpage, though, as well as occasionally slow speeds.
These are 10 good VPN providers that accept bitcoin, there are probably more as there are dozens of VPN companies out there, but these will all do the job for you. If you want to dive into the details of each we do recommend visiting a third party comparison site for real in-depth analysis.
Have you paid for VPN services in bitcoin? Share your experience below!
