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“Power Law” - Bitcoin $10 Million by 2045

“Power Law” - Bitcoin $10 Million by 2045


Good day everyone,

I hope you are all well and had an excellent weekend, welcome to CryptoGod-1’s blog on all things crypto. In this post I will be looking at a recent claim by a physics professor that Bitcoin could reach $10 million by 2045. 

 

 

Power Law Model

Professor Giovanni Santostasi noted in a video post to 'X' on the 2nd of March 2024 that Bitcoin could reach $10 million by 2045, citing his own “power law” mathematical relationship. In the video Santostasi told mathematician and Bitcoin investor Fred Krueger that his power law model is a more understandable and predictable model of a long term price model for Bitcoin. Within the post, which is a shorter version of the overall discussion, Giovanni outlines his "Power Law" model.

 

Santostasi noted:

 

“The linear chart that they usually show in TV — what [Jim] Cramer is talking about — looks messy. But when you do the log of the y-axis, and you start to see some regularity there, it doesn’t look that messy, it looks like a very nice pattern.”

 

Santostasi went on to point out that most short-term Bitcoin price charts featured in mainstream media present a disorganized and unreliable narrative when accounting for the movement of Bitcoin's price. The professor went on to note a crucial distinction from the widely criticized stock-to-flow model while also emphasising that the power law is logarithmic instead of exponential. In other words he is stating that Bitcoin’s price is not obligated to experience continuous growth over time.

Given the substantial fluctuations in value, such as those observed from 2020 to 2023, Santostasi is still capable of explaining this within his "power law" model. This mathematical concept of the "power law" describes a relationship where one one value is proportional to a fixed power of another value. This "power law" is a recurring pattern found in various natural phenomena, from the frequency of earthquakes to the dynamics of stock market fluctuations.

Back in 2018 Santostasi initially introduced his model on the r/Bitcoin subreddit. From here it gained traction and again back in January 2024 it gained renewed attention when finance YouTuber Andrei Jeikh, who has 2.3 million subscribers, discussed it in a video.

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Following on from that, Krueger's post from his conversation with Santostasi delved into additional mathematical modelling of the "power law" applied to Bitcoin. From this they predicted that Bitcoin could reach $100,000 within the next two years. Krueger further stated that assuming Bitcoin follows the "power law" model, its market cap is projected to surpass that of gold by the year 2033 and this would result in Bitcoin’s value reaching $1 million per coin.

 

 

 

Have a great day.

Peace. CryptoGod-1.

 

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cryptogod-1
cryptogod-1

Writer, designer, creator, and life enthusiast. I love to read and write and enjoy sharing my passion for crypto, sports, literature and everything and anything I can enjoy in life.


CryptoGod-1 : Crypto & Blockchain
CryptoGod-1 : Crypto & Blockchain

Enthusiast here looking to share my ideas, thoughts, analysis, and experience when it comes to all things crypto

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