The only thing I have to add to this great article is metcalfs law -
"Metcalfe's law states that the value of a communications network is proportional to the square of the number of connected users of the system. "
I think this applies to Bitcoin as the network that communicates value
It applies to bitcoin and all cryptocurrencies. First the blockchain is a technology and the more people on the blockchain, boom Metcalfe's law. And the more wallets that are open, again we see Metcalfe in action.
Agreed.
Not sure about using wallets as a measure though, as people seem to have more than one wallet. Unless we could somehow figure out the average number of wallets per person.
Yes that is true but the ratio, most likely, would hold no matter what the total.
With 5 million wallets, there are a lot of duplicates...and the same is true for 50M wallets....hence, even though not accurate in a pure sense, it does show the power of the network.
Since a certain percentage are legitimate, probably a large percentage, I would say, overall, the more wallets a token has, the greater its network effect.
I never thought of it that way - that gets you a follow : )
So as long as the ratio holds the number of wallets would be a good measurement. I suppose the challenge is to see if the wallets per person is staying the same or increasing/decreasing
You point to multiple wallets like it is a negative. People could have multiple wallets for a reason. I do.
In bitcoin, I have one that is cold storage....another on my nano....another Xato on my phone....all have differing degrees of money in them and are for different purposes. I am sure I am not the only one.
When you think about it, if a token has usefulness and extreme value, people will have multiple wallets....they arent going to want it all in one place, especially on their phone.
Sorry no I didn't mean to give the impression that I thought multiple wallets were a bad thing. I seem to be collecting more wallets as I do further down the crypto rabbit hole. So for me the wallet ratio is increasing as time goes by.
Very good.
Which shows the accumulation of wallets is in direct reflection to your interest in crypto and, I presume, you acquisition of them.
Ergo, I think you are a prime example of multiple wallets truly telling the story...you are only acquiring more as you become more immersed in crypto.
Fiat, ironically