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A top finance guru suggests that Bitcoin’s current growth phase is strikingly similar to how Google grew back in 2017. This indicates that Bitcoin still has loads of untapped potential! The expert sees Bitcoin as a maturing digital network with useful features, implying there’s still a wave of value waiting to be captured. His insights come at a time when Bitcoin’s price is facing some rocky patches and the market is quite jumpy.
Bitcoin vs. Google: A 2017 Comparison
Raoul Pal, the founder and CEO of Real Vision, has made an interesting connection between Bitcoin’s recent price growth and Google’s early days. In a recent post, Pal explained how digital assets tend to grow in a network-driven manner, similar to how big tech companies expand as they gain more users.
He pointed out that crypto operates like a Metcalfe’s Law network, much like Google, Amazon, Meta, and Tesla, where value grows with more participants instead of relying on traditional financial methods. He cautioned that trying to evaluate cryptocurrencies using cash flow models misses the point of what makes a network truly valuable.
Pal believes that the value of blockchain ecosystems is tied to how much they are used, how quickly they are adopted, and the network effects created by tons of users. This belief supports his idea that Bitcoin’s current price surge reflects Google’s 2017 position. He backed this up with a GOOGL US equity chart showing its steady climb over the years. Even in 2017, Google was a leader in search, yet many of its core strengths, like cloud computing and AI, were still being developed.
While Bitcoin is secure, widely used, and increasingly woven into the global financial fabric, Pal’s perspective hints that the cryptocurrency’s long-term growth and its full potential are still waiting to be unlocked. He even suggested that Ethereum might be at an earlier stage of its growth, hinting that it might have a longer path ahead as its technology and applications continue to evolve.
The Real Deal on Crypto Networks
Pal’s comments about Bitcoin and Google came in response to thoughts from Santiago Roel Santos, founder and CEO of Inversion, a tech-forward investment firm. Santos initially noted that the network effects in crypto have been exaggerated and often misapplied to justify lofty valuations akin to social networking brands.
Santos remarked that many cryptocurrencies haven’t shown substantial value capture, making them more akin to open-source software like Linux instead of platforms like Facebook that gain directly from growing user bases. Pal countered this argument by emphasizing that crypto networks display genuine and measurable network effects. His entire stance rests on the understanding that user engagement and transaction volumes contribute to the increasing value of digital networks such as Bitcoin.
Featured image from Pngtree, chart from Tradingview.com
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