Timothy Peterson, an expert cryptocurrency analyst, posted a tweet in which he shared his predictions about Bitcoin.
As the entire cryptocurrency community is soon following, the leading cryptocurrency Bitcoin (BTC) has been consolidating for a long time in the range of $ 10,000 to $ 11,000. BTC has been trading over $ 10,500 for the past few days. The fact that Bitcoin has been consolidating in the same region for so long has caused analysts to enter a bullish expectation.
Many analysts are very optimistic about Bitcoin. One of these analysts is Timothy Peterson. Timothy Peterson made an ambitious comment about the Bitcoin price using the Metcalfe model. Peterson announced that the price of Bitcoin, which is in the range of 10 thousand 500 -11 thousand dollars, will exceed 11 thousand dollars in two weeks. He stated that he would then test 12 thousand dollars.
It will reach 37 thousand dollars!
Veteran analyst Timothy Peterson announced on Sunday when Bitcoin will rise. After the presidential debate in the US, the Bitcoin price, which exceeded $ 10,700, continues to test $ 11,000. Timothy Peterson said that this test will be successful in two weeks. The analyst used the following statements in his tweet:
$ 11,000 within 2 weeks,
$ 12,000 in 2 months
It will be $ 37,000 in 2 years. ”
Peterson explained that he made these forecasts with the Metcalfe model and stressed that these are by no means investment advice.
“Bitcoin Never Look Back”
The analyst believes that if this comment turns out to be true, the Bitcoin price will continue to rise. The analyst, who gave two weeks for 11 thousand dollars, gave two months to 12 thousand dollars and two years to 37 thousand dollars. Peterson, who makes his analysis with the slogan “Bitcoin never looks back”, thinks that Bitcoin will rise gradually and the BTC price will increase almost “one thousand dollars every 50-60 days”.
What is the Metcalfe Model?
The Metcalfe Model (Law), which measures the value of a network, can calculate the value of a cryptocurrency and predict when it will happen. Metcalfe’s Law states that the value of a network is proportional to the square of the number of users. It is easy to calculate a value for Bitcoin based on the number of active users.
Bitcoin’s price is best modeled as a network. Metcalfe’s law, which has been adjusted to create new Bitcoins over time, is best suited for this task. This approach gives an idea of the long-term value of Bitcoin, but does not attempt to explain the short-term price movements that we accept can be driven by multiple factors.
Bitcoin critics, knowing that supply is basically fixed in the short term, often point to changes in demand that are responsible for all price changes. This may be true in the short term, but it is also an oversimplification. Demand-side approaches are often misidentified as they ignore the disproportionate added value with the addition of a new user.
While most network laws are proposition, Metcalfe’s law is a mathematical tautology. Metcalfe’s law assumes homogeneity between links. This assumption is met for Bitcoin because every Bitcoin user only transacts with Bitcoin. However, social networks operate in a variety of media that are heterogeneous in nature and subjective in value.