It’s time to ditch Bitcoin Power Law Theory
The Bitcoin Power Law Theory relies purely on mathematics. It doesn’t account for the human nature of how Bitcoin is traded.
The scientific community’s search for patterns in complex phenomena has led to an overenthusiastic application of mathematical models, with “Power Law” relationships emerging as the model du jour in many circles. The Bitcoin Power Law Theory (BPLT) is the latest in a series of predictive models attempting to forecast Bitcoin’s (BTC) future value.
While the BPLT is superficially appealing, it ultimately applies faulty assumptions to create a theory that purports to explain everything about Bitcoin’s price movements — and yet it explains very little.
The power law — created by former physics professor Giovanni Santostasi — provides a price band for Bitcoin that — proponents claim — has accurately predicted its support levels since Bitcoin traded at $1. The law predicts Bitcoin will reach a price of $1 million by 2036.
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Author: Adrian Morris
