Bitcoin Spreads Like a Virus

We illustrate, by way of example, that Bitcoin’s long-term price is non-random and can be modeled as a function of the logistic growth of number of users n over time. Using observed data for both Facebook and Bitcoin, we derive the relationships between price, number of users, and time, and show that the resulting market capitalizations likely follow a Gompertz sigmoid growth function. We conclude that the long-term growth rate in users has considerable effect on the long-term price of bitcoin.

Source: papers.ssrn.com