🚨Critics of Bitcoin often argue that it has no "intrinsic value" because, unlike a company, it does not generate cash flow, dividends, or profits that can be valued using traditional financial models. The narrative is that its price is pure speculation. But here’s the wild part... Bitcoin is valued by its network effect, according to Metcalfe's Law.

While the value of a stock is derived from its balance sheet and projections of future earnings, the value of Bitcoin is derived from the utility of its network, much like the value of the Internet or a telephone network. Metcalfe's Law states that the value of a communication network is proportional to the square of the number of users. The more people, miners, and developers that join Bitcoin, its marginal value increases exponentially for each new user.

People try to value Bitcoin using outdated metrics. But the reality is that its value comes from its functionality as a value communication protocol. It is not an object for storing wealth; it is a network for securely transferring wealth. Therefore, the price is strongly correlated with the number of users, wallets, and nodes that are interacting with it, justifying exponential long-term growth.

It is not an asset; it is a protocol. The asset that does not generate money is valued by its Utility.