What is the power law model?
A power law is a mathematical relationship in which one value is proportional to a fixed power of another value. The power law has been observed in a wide range of natural phenomena, from the frequency of earthquakes to the dynamics of stock market changes.
Now Santostasi claims that the bitcoin price may also be subject to the power law.
The physicist first shared his model on Reddit in 2018. The model made a comeback after YouTuber Andrei Jeikh mentioned it in a video for his 2.3 million subscribers.
Santostasi says the model predicts that bitcoin will peak at $210,000 in January 2026 and then fall back to around $60,000.
A predictable model for the bitcoin price?
In a March 2 discussion with mathematician and bitcoin investor Fred Kruger, Santostasi says the power law model allows for an easier-to-understand and predictable model for bitcoin price action over longer time periods.
First cut from my 90 min deep dive with @Giovann35084111
This is the chart that you “can’t unsee”.
Non-intuitive aspects of the power law
In the next 15 years of Bitcoin, we expect the price
to go up not by 2, but by 64! pic.twitter.com/K1RiQSPt1M— Fred Krueger (@dotkrueger) March 2, 2024
According to Santostasi, the linear graphs that we often see in the mainstream media provide a “confused” picture of the price development of bitcoin.
“But if you take the log of the y-axis, you see some regularity and it no longer looks so messy. Then it even seems like a very nice pattern,” says the physicist.
Hyperbitcoinization timeline and the meaning of 5.8
——————————————————-I have done a lot of thinking over the last 24 hours on the meaning of power laws, and the implication for future Bitcoin prices.
But as i asked @Giovann35084111 the… pic.twitter.com/4iSP0IQMse
— Fred Krueger (@dotkrueger) March 2, 2024
In any case, Fred Krueger seems completely on board when it comes to Santostasi’s power law model. Will we really see bitcoin prices of more than 1 million dollars in the future? What do you think? Is that a serious possibility or are we going too fast now?
Source: https://bitcoinmagazine.nl/nieuws/natuurkundige-mijn-model-voorspelt-een-bitcoin-koers-van-10-miljoen