₿omboriver on Nostr: For #Bitcoin,the power law has the exponent 6 and is derived from two other observed ...
For #Bitcoin,the power law has the exponent 6 and is derived from two other observed power laws in on-chain data:
a) growth of addresses over time, reflecting network adoption:
Addresses ∝ Time³
b) Price's quadratic response to adoption, aligning with Metcalfe's Law, which theorizes that the value of a network scales with the square of its connectivity:
Price ∝ Addresses²
If we approximate that Bitcoiners are synonymous with Addresses, we arrive at:
Price ∝ Bitcoiners² ∝ (Time³)² ∝ Time⁶
In addition, a power law relationship exists between Price and Hash Rate:
Hash Rate ∝ Price ² .
This relationship is due to the interplay between difficulty adjustment, Moore's Law, and halving events.
Studying #bitcoin....lessons cortesy of Giovanni Santostasi
his indicators below ...
Published at
2024-06-02 03:03:50Event JSON
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"created_at": 1717290230,
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"content": "For #Bitcoin,the power law has the exponent 6 and is derived from two other observed power laws in on-chain data:\n\na) growth of addresses over time, reflecting network adoption:\n\nAddresses ∝ Time³\n\nb) Price's quadratic response to adoption, aligning with Metcalfe's Law, which theorizes that the value of a network scales with the square of its connectivity:\n\nPrice ∝ Addresses²\n\nIf we approximate that Bitcoiners are synonymous with Addresses, we arrive at:\n\nPrice ∝ Bitcoiners² ∝ (Time³)² ∝ Time⁶\n\nIn addition, a power law relationship exists between Price and Hash Rate:\n\nHash Rate ∝ Price ² .\n\nThis relationship is due to the interplay between difficulty adjustment, Moore's Law, and halving events.\n\nStudying #bitcoin....lessons cortesy of Giovanni Santostasi\n\nhis indicators below ...\n https://image.nostr.build/e0afc86b2e6a5584e06c75af8bd80736113fe2ff5b4b03e1703125fac5cf6461.jpg",
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