Re: Bitcoin adoption slowing; Coinbase + Bitpay is enough to make Bitcoin a fiat
I am still stunned that the Metcalfe model so accurately corresponds to the actual market cap over 4 years and over 1,000,000% growth in market cap. The plot confirms for me that the value of bitcoin comes from the network of people who use it. If we keep finding new ways to use bitcoin, the rest will take care of itself.
I am not sure if bitcoin's adoption is slowing yet, but as cryptocurrency's values seem to follow Metcalfe's it seems sure to do so in the near future. Bitcoin's deflationary nature causes holding not spending. The new tax implications from the IRS and relatively high costs of replacing spent coins on an exchange will further exacerbate this trend. If Metcalfe's law holds this will progressivly slow the use of the currency and thus hold down its value.
The stage seems set for a more nimble competitor to arise solve these priblems and eventually take the crown.