Former Goldman Sachs executive Raoul Pal is comparing Bitcoin to social media giant Facebook with the idea that the king crypto is a network of money.
In a new interview with Outlier Ventures, Pal says Bitcoin is Facebook on steroids because it allows users to enjoy both the benefit of the network and the value of it at the same time.
“In the past, Facebook had shareholders and users. The users got the benefit of the network. The shareholders got the benefit of Metcalfe’s Law – the value of the network, and as a user, you didn’t get that at all really.
Then Bitcoin comes along, and it’s basically the world’s best behavioral incentive program… We’re going to create a network of money, and the more people you bring into the network, the more it goes up in value. We’re going to build applications on it, so it’s not a Ponzi scheme. It’s actually something you can build on.
This is perfect for humans. We’re going to go crazy on this stuff because we’re all incentivized. We’re all network users and owners at the same time. It’s like every person on Facebook being given Facebook shares. It’s amazing.”
Pal explains why Bitcoin’s valuation solely relies on the growth of its network.
“It’s all about network adoption. Everything else is kind of noise in the middle. Once you understand network adoption is everything – and we talked about it earlier on about this 113% growth rate – you understand and you can apply that to everything in the crypto space and in the metaverse space. You’re just looking for adoption. Anybody’s who’s trying to value stuff on cash flow or anything else is barking up the wrong tree.”
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