May 13, 2024

CK (Changguang) Zheng, co-founder and CIO at ZX Squared Capital, explains bitcoin's network effect with the Metcalfe's law, which states that the value of the system is proportional to the square of the size of network.

Video transcript

At the early days, from a world trade perspective, are really concerned about how Bitcoin stay here for long term today. That question, I think it's much less relevant. So what, what changed your mind? I think there's a multiple things. One is, I think the network effect, I think when, when network is small, it's questionable when network actually reach 200 million people, that's pretty sizeable population. And that the network effect, I really follow the, um, met law that the value of the system is the proportion to the square of the size of network. And, uh, when I get my hedge fund running three years ago, I saw the volume, uh, and not only that the financial product actually become mature, uh not only the future, but the more importantly, the option market.

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