What things made the crypto world go ab and down

Bitcoin Questions and AnswersCategory: General questionsWhat things made the crypto world go ab and down
Kai asked 2 years ago

What things made the crypto world go ab and down, there must be something where people can check to see why this happened, when the price go high then this because of something and the same when the price go down, now is the one millon question is :0): what is these things, it must be anythings where people can imagine! I dont mean to see before what could happen (if that possible this will be amazing :0)) BUT a small point to know about that.

1 Answers
Steven Hay answered 2 years ago

Hi Kai,
Apparently 94% of Bitcoin’s price can be explained by one equation: the square function number of users (based on unique addresses) times the average transaction value. In other words, Metcalfe’s law, which explains the network effect.
So the more users Bitcoin gets and the more value they transfer via Bitcoin, the higher the price will go. Less users and lower value transactions will mean a lower price.
Note that this is used to explain price growth over the longer term.

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