Bitcoin Power Law Model

Understanding the mathematical model behind Bitcoin's long-term price trajectory

⚡ What is the Bitcoin Power Law?

Learn about the mathematical model that describes Bitcoin's price evolution

📚 The Model

The Bitcoin Power Law, developed by physicist Giovanni Santostasi, describes Bitcoin's price as a function of time since its genesis block (January 3, 2009).

Formula: Price = A × (days since genesis)n
Where: A = 1.0117e-17, n = 5.82

🎯 Percentile Scenarios

25th Percentile (Conservative): 0.55x multiplier
35th Percentile (Moderate): 0.65x multiplier
50th Percentile (Median): 0.75x multiplier
75th Percentile (Optimistic): 0.85x multiplier

🔬 Key Insights

  • Based on mathematical analysis of Bitcoin's entire price history
  • Shows consistent power law behavior since 2009
  • Used by our calculators for long-term price projections
  • Includes minimum 10% annual growth floor for stability

🧮 Power Law Calculator

Projected Bitcoin Price
$XXX,XXX
Price Comparison
Current Price: Loading...
Projected Multiple: -
Annual Growth Rate: -

📈 Power Law Visualization

Historical Bitcoin price vs Power Law model predictions

Bitcoin Price vs Power Law Model (Log Scale)

👨‍🔬About the Creator

Giovanni Santostasi is a physicist and researcher who has extensively studied Bitcoin's price behavior using mathematical models.

His Power Law model has gained significant attention in the Bitcoin community for its accuracy in describing long-term price trends.

Key Contribution: Demonstrated that Bitcoin follows a consistent mathematical power law relationship over its entire history.

🎯Practical Applications

1.

Long-term Planning

Used in retirement and investment calculators for Bitcoin projections

2.

Fair Value Analysis

Helps identify if Bitcoin is over or undervalued relative to the model

3.

Risk Assessment

Multiple percentile scenarios for conservative to optimistic planning

4.

Educational Tool

Demonstrates Bitcoin's consistent mathematical growth pattern

⚠️ Important Considerations

Model Limitations

  • • Based on historical data - past performance doesn't guarantee future results
  • • Cannot account for major regulatory or technological changes
  • • Mathematical model may not hold indefinitely
  • • Should be combined with other analysis methods

Usage Guidelines

  • • Use multiple percentile scenarios for planning
  • • Consider it one factor among many in decision-making
  • • Regularly reassess projections against actual performance
  • • Not financial advice - do your own research

This calculator is for educational purposes only and doesn't represent financial advice. You might want to consult with financial and tax professionals before making decisions. Sometimes they don't know shit tough so you might...stay humble and stack sats.