In this episode, Mark and I were joined by special guest Timothy Peterson to discuss a very important topic: how to properly value Bitcoin. I've included a summary of our content below, but if you are interested in finding out more info about Tim or his approach, there are lots of good resources on his website here. To kick things off, Tim gave us his framework for how to value Bitcoin, which relies on Metcalfe's Law. We talked about other networks including Facebook, Amazon, and even Tesla whose valuations can be traced to the same underlying principle.   We dove into historical periods where Bitcoin exceeded its fair value, and what caused those deviations. Next we took a look at Bitcoin's trailing returns vs user growth, and some other shorter term drivers of price action such as transaction volume. Tim gave us some helpful comparisons between Bitcoin and other markets, such as the market for negative yielding debt and the Nasdaq. We walked through why Bitcoin is correlated to those markets. Finally we ended on Ethereum, other crypto networks, and how network effects could impact a multi-chain future. For our conclusions there, you'll have to tune into the show. -- Follow Timothy Peterson: @nsquaredcrypto Follow Mark Yusko: @MarkYusko Follow Mike: @MikeIppolito_ Follow Blockworks: @Blockworks_ -- Fireblocks is an enterprise-grade platform delivering a secure infrastructure for moving, storing, and issuing digital assets. Fireblocks serves over 725 financial institutions, has secured the transfer of over $1.5 trillion in digital assets, and has a unique insurance policy that covers assets in storage & transit. For more information, please visit https://onthemargin.link/fireblocks -- If you like this episode be sure to subscribe to our newsletter at https://blockworks.co/newsletter

In this episode, Mark and I were joined by special guest Timothy Peterson to discuss a very important topic: how to properly value Bitcoin. I've included a summary of our content below, but if you are interested in finding out more info about Tim or his approach, there are lots of good resources on his website here. To kick things off, Tim gave us his framework for how to value Bitcoin, which relies on Metcalfe's Law. We talked about other networks including Facebook, Amazon, and even Tesla whose valuations can be traced to the same underlying principle.   We dove into historical periods where Bitcoin exceeded its fair value, and what caused those deviations. Next we took a look at Bitcoin's trailing returns vs user growth, and some other shorter term drivers of price action such as transaction volume. Tim gave us some helpful comparisons between Bitcoin and other markets, such as the market for negative yielding debt and the Nasdaq. We walked through why Bitcoin is correlated to those markets. Finally we ended on Ethereum, other crypto networks, and how network effects could impact a multi-chain future. For our conclusions there, you'll have to tune into the show. -- Follow Timothy Peterson: @nsquaredcrypto Follow Mark Yusko: @MarkYusko Follow Mike: @MikeIppolito_ Follow Blockworks: @Blockworks_ -- Fireblocks is an enterprise-grade platform delivering a secure infrastructure for moving, storing, and issuing digital assets. Fireblocks serves over 725 financial institutions, has secured the transfer of over $1.5 trillion in digital assets, and has a unique insurance policy that covers assets in storage & transit. For more information, please visit https://onthemargin.link/fireblocks -- If you like this episode be sure to subscribe to our newsletter at https://blockworks.co/newsletter