Metcalf’s Law

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Metcalf’s Law is a network effect which even if you’re unaware of has effected your life. The easiest way to explain Metcalf’s Law and its exponential importance (pun intended) is by looking at a few electronic networks that human beings today are practically tethered to.

Let’s use the early cellular phones as the first example to explain network effect. The first cell phones had some utility because they could call landline phones but the first few years of cell phones didn’t see great adoption. But, over time as the free market began to work its magic, cellphones became cheaper to produce and more people began to buy them. But many don’t realize what drives demand in most electronic consumer goods; moreover, that demand is direct causation of Metcalf’s Law. Metcalf’s Law states that the value of a telecommunications network is proportional to the square of the number of connected users of the system (n2).




Just as the cellphone eventually reached peak adoption, cryptocurrency alike will do the same. I’ve seen it numerous times now in my 32 years, I also saw this network effect take place as an early adopter in Facebook. Very few people were present for the first few years of Facebook because it had exclusivity built into it, only users registered with certain University Email Addresses could access The Facebook as it was called then. (Side Note: www.thefacebook.com is Finally a dead link.) Furthermore, but once that steady ascent and build up reaches a certain point it for lack of a better term, pops. Literally, like a jack out of a box that can never be put back in – that’s Metcalf’s Law in relation to cellphones, Facebook, and now cryptocurrencies alike.  



Cryptocurrency adoption is under less than 1% of world population currently so mass adoption isn’t going to occur tomorrow. Patience is a virtue and will be very important into the future of cryptocurrency, we all must learn and pass on what we learn to help future adopters to push the network effect forward, we all have a role to play in Metcalf’s Law whether knowingly or unknowingly.

BTC: 1Mr8prvJfAyE26whXdYejVVR246xLZdZgr

LTC: LWYAuQB12ZAYLizZ3Ji7oAZS7ZbKohQdtP

ETH: 0xa8B6806f4f442084Af0e7E6F31ca6A4494a5E743

My name is R.L. Bryer and I go by the name Pittsburgh HODLr. I grew up in the United States and studied at The Ohio State University in Columbus, Ohio. There I studied English Literature & Economics. During University I developed an interest in Bitcoin and then Litecoin that turned into a passion for cryptocurrencies over the last 6 years. In 2012 I found out about Bitcoin and I devote much of my time to spreading the adoption of Bitcoin and Litecoin to help mankind.