The Adoption Curve, Blockchain Technology, and Cryptocurrency
As a part of blockchain technology, cryptocurrency reflects a technological innovation dependent on networks of users. The scale of adoption thus influences the value of each unit of this technology, a concept called the Technological Adoption Curve, or Network Curve. For technology dependent on a network (such as email, smart phones, surfing the internet), the greater the number of users, the greater the innovation’s value to each user.4 Similarly, since blockchain applications require encrypted digital currency, bitcoin and other forms of cryptocurrency could rise in value as blockchain technology proliferates.
- 4 For example according to Metcalf’s Law, the value of a telecommunications network (such as the internet), is proportional to the square of the number of the system’s connected users (n2).