Cristaiji on Nostr: Bitcoin as a ‘Power Law’ and ‘force of nature’ or in ‘exponential decay’? ...
Bitcoin as a ‘Power Law’ and ‘force of nature’ or in ‘exponential decay’? 🧐
According to mathematicians such as Giovanni Santostasi, Stephen Perrenod, Fred Kruegar and others, bitcoin expresses a number of power laws.
A power law is a relationship between two quantities where a change in one quantity results in a relative change to the other quantity proportional to a power of the change.
For example Bitcoins price appreciation relative to time has been remarkably consistent over the past 15 years. It has increased in orders of magnitude or powers of 10 and has been predicted successfully by Giovanni Santostasi.
Santostasi discovered this power law like behaviour in 2014 and was of course met initially with scepticism.
However for the last 10 years his thesis has been born out in Bitcoins growth in price, hash rate, addresses and other variables.
It seems to be that the consistency of bitcoins behaviour cannot be only coincidence.
However legendary traders like Peter Brandt have a different perspective.
Brandt proposes the possibility albeit reluctantly that Bitcoin has already topped this cycle and is in something he calls ‘Exponential Decay’.
https://www.peterlbrandt.com/does-history-make-a-case-that-bitcoin-has-topped/https://x.com/peterlbrandt/status/1783928752336212329?s=46What do you guys think? Is Bitcoin predictable? Will it continue to hit higher and higher prices? Or might it follow a course of diminishing returns and break the power law trajectory? 🙏
https://stacker.news/items/522133/r/cristaiji#plebchain #powerlaw #bitcoin
Published at
2024-04-30 15:18:47Event JSON
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"content": "Bitcoin as a ‘Power Law’ and ‘force of nature’ or in ‘exponential decay’? 🧐\n\nAccording to mathematicians such as Giovanni Santostasi, Stephen Perrenod, Fred Kruegar and others, bitcoin expresses a number of power laws. \n\nA power law is a relationship between two quantities where a change in one quantity results in a relative change to the other quantity proportional to a power of the change. \n\nFor example Bitcoins price appreciation relative to time has been remarkably consistent over the past 15 years. It has increased in orders of magnitude or powers of 10 and has been predicted successfully by Giovanni Santostasi. \n\nSantostasi discovered this power law like behaviour in 2014 and was of course met initially with scepticism. \n\nHowever for the last 10 years his thesis has been born out in Bitcoins growth in price, hash rate, addresses and other variables. \n\nIt seems to be that the consistency of bitcoins behaviour cannot be only coincidence. \n\nHowever legendary traders like Peter Brandt have a different perspective. \n\nBrandt proposes the possibility albeit reluctantly that Bitcoin has already topped this cycle and is in something he calls ‘Exponential Decay’. \n\nhttps://www.peterlbrandt.com/does-history-make-a-case-that-bitcoin-has-topped/\n\nhttps://x.com/peterlbrandt/status/1783928752336212329?s=46\n\nWhat do you guys think? Is Bitcoin predictable? Will it continue to hit higher and higher prices? Or might it follow a course of diminishing returns and break the power law trajectory? 🙏\n\n\nhttps://stacker.news/items/522133/r/cristaiji\n\n#plebchain #powerlaw #bitcoin https://image.nostr.build/b178e27a739e10e817bfda9715fb90567b78a02b41c51f0c35e58128e816f277.jpg ",
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