What are the implied network valuation states?
Understand the Problem
The question provides different statements regarding implied network valuation and likely asks the user to identify which of these statements is accurate or true in the context of network economics.
Answer
The value of a network is equal to the square of the users.
The value of a network is equal to the square of the users.
Answer for screen readers
The value of a network is equal to the square of the users.
More Information
Metcalfe's Law is a popular principle used to estimate the value of a network, suggesting the value increases with the square of the number of users.
Tips
A common mistake is confusing the power applied to the number of users in network valuation theories—Metcalfe's Law should be identified by the square.
Sources
- The Network Effect As a Valuation Methodology - cryptoresearch.report
- What Is Bitcoin's Network Worth? - Morningstar - morningstar.com
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