Veteran Fund Manager Draws Parallel Between Bitcoin and Google’s 2017 Growth
Bitcoin’s recent market behavior has sparked renewed debate over its classification—is it functioning more like a risk-on technology stock or the “digital gold” that many long-term supporters envision? Notable voices in finance have weighed in, underscoring the cryptocurrency’s shifting dynamics.
Raoul Pal, former hedge fund manager and founder of Real Vision, recently amplified this conversation by likening Bitcoin’s current growth phase to that of Google about a decade ago. His insights highlight the increasing influence of network effects in driving Bitcoin’s valuation, a concept known as Metcalfe’s Law.
Bitcoin’s Market Volatility Mirrors High-Beta Tech Stocks
Following a peak near $126,000 in early October, Bitcoin experienced a sharp decline after President Donald Trump announced plans on Truth Social to impose 100% tariffs on Chinese imports, stirring broad market turmoil. This tariff announcement on October 10, 2025, led to significant selloffs not only in traditional risk assets but also across cryptocurrencies. At the time of reporting, Bitcoin was trading above $90,000, approximately $92,618, reflecting a pullback from its earlier highs.
Such fluctuations align with observations from analysts like Jesse Colombo, who noted earlier in October that Bitcoin appears to behave similarly to high-beta technology equities—assets that are highly sensitive to shifts in macroeconomic sentiment and market risk appetite.
Raoul Pal’s Google Comparison: A Network Effect Story
In a November 28 post on X (formerly Twitter), Pal explained that Bitcoin’s trajectory resembles the early years of major tech companies such as Google, Amazon, and Tesla, whose valuations grew exponentially with expanding user networks rather than traditional cash flows. He stated:
“If it looks like a duck, quacks like a duck, it is probably a duck… Crypto is clearly a Metcalfe’s Law network model, just like Google, Amazon, Meta, Tesla etc. almost by definition and using cash flows misses the entire valuation of a network… I would argue we are around 2017 GOOGL in BTC and earlier in ETH.”
By drawing this parallel, Pal suggests Bitcoin is currently in an adoption and growth phase similar to that of Alphabet (Google’s parent company) in 2017—a year when Google experienced rapid revenue growth, strong advertising sales, expansion into cloud services, and a stock price increase of roughly 30%.
Understanding Metcalfe’s Law in Context of Bitcoin
Metcalfe’s Law posits that the value of a network scales proportionally to the square of the number of its users. In cryptocurrency markets, this law is increasingly applied to assess assets like Bitcoin, where the network’s size, transaction activity, and user participation directly influence the asset’s worth.
Market analysts often use a “2x Metcalfe-Value” valuation band to identify Bitcoin’s fair value ranges based on on-chain data. According to this framework, Bitcoin’s price tends to fluctuate between upper and lower bounds as its network grows, reflecting ongoing development and adoption levels.
Broader Industry Scene and Outlook
The perspective placing Bitcoin in the context of tech stocks resonates amid other recent developments in the crypto space. Major institutions like JPMorgan have launched Bitcoin investment funds targeting wealthy clients, signaling sustained interest from traditional finance. Meanwhile, geopolitical events and regulatory news continue to cause volatility, as seen with tariff announcements impacting crypto valuations.
As Bitcoin navigates these dynamics, Pal’s analogy to Google’s 2017 phase highlights the potential for exponential growth supported by increasing network effects, even if accompanied by volatility reminiscent of high-beta equities.
About the Author
Pooja Rajkumari is a Senior Reporter at TheStreet Crypto, covering Bitcoin, cryptocurrencies, and financial markets. She brings experience in U.S. finance and economic reporting and focuses on delivering analysis and insights into emerging market trends.
Contact Information: [email protected]
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