What is Bitcoin's Power Law theory?
A theory proposed by Giovanni Santostasi
Last updated
A theory proposed by Giovanni Santostasi
Last updated
The proposed by , is a mathematical model suggesting that Bitcoin's price follows a power law distribution.
This model predicts that Bitcoin's price tends to grow according to a power law curve, indicated on a log-log chart.
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This implies that while short-term price variations are significant, there is a predictable and steady trend over the long term.
The theory is based on two main principles:
Logarithmic Growth: Bitcoin's price grows not exponentially but according to a power law, indicating sustainable and predictable long-term growth.
Fractal Relationships: Bitcoin's price variations follow fractal patterns, suggesting a self-similar structure in price fluctuations across different time scales.
To understand the theory in full, we recommend watching these videos:\
Using mathematical models based on the power law, it is possible to estimate future Bitcoin price trajectories.
This involves analyzing historical data and projecting power law curves to predict future prices.
The main limitations include:
Bitcoin's Volatility: Predictions can be influenced by extreme market variations.
Unpredictable Events: External factors or unforeseen events can significantly deviate prices from theoretical projections.
Additional Information: The information provided here is for general informational purposes only and should not be considered financial advice. It contains forward-looking information that is inherently unknowable. You should seek advice from a professional financial advisor and other trusted sources before acting on any of this information. The authors and publishers of this information disclaim responsibility for any action taken by users of this information. This is but one view of potential outcomes. You should inform yourself of other views, including those that might disagree. All tools provided on this site are intended solely for data visualization purposes and do not constitute any form of financial advice.
More details and analyses on the Bitcoin Powerlaw can be found in Giovanni Santostasi's posts on and other finance and cryptocurrency articles and blogs, such as those on CoinTelegraph and Decrypt.
Here on , the first post pubblished from Giovanni about Power Law Theory in 2018.
