Which of the following statements accurately reflects implied network valuation? 1) The value of a system is equal to its price. 2) The value of a network is equal to a square. 3)... Which of the following statements accurately reflects implied network valuation? 1) The value of a system is equal to its price. 2) The value of a network is equal to a square. 3) The value of a blockchain is equal to the cube of the users. 4) The value of a network is equal to the square of the users.
Understand the Problem
The question presents various statements related to network valuation and is likely asking to identify which statement accurately reflects a principle of network valuation.
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 suggests that the value of a network grows proportionally to the square of the number of users connected to it. This principle highlights the increased utility and value generated as more users join the network.
Tips
Confusing different valuation theories can lead to incorrect assumptions. Ensure you understand the specific context such as Metcalfe's Law focuses on network users.
Sources
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