- The Bitcoin Power Law model predicts Bitcoin’s price reaching $1 million per unit by 2033 and an impressive $10 million by 2045.
- The model, formulated by Fred Krueger and Giovanni Santostasi, utilizes a mathematical equation based on the principles of algebra and natural laws.
- Hal Finney’s 2009 prediction aligns with the Power Law model, envisioning a scenario where Bitcoin’s success makes it the dominant global payment system.
Bitcoin’s trajectory has been a subject of intense speculation, but a new mathematical model is gaining attention for its bold predictions. The Bitcoin Power Law, devised by Fred Krueger and Giovanni Santostasi, integrates principles of algebra and natural laws to forecast Bitcoin’s price. The formula, (Estimated Price = A times (days from GB)^n), where GB symbolizes the Genesis Block and (n) is set at 5.8, paints a picture of Bitcoin’s journey.
The Power Law Model’s Bold $1 and $10 Million per Bitcoin Predictions
The Power Law model not only accurately reflects Bitcoin’s historical price changes but also anticipates a rise to $1 million per coin by 2033, eventually reaching an impressive $10 million by 2045. This aligns with Hal Finney’s intriguing 2009 statement envisioning each coin’s value at about $10 million if Bitcoin becomes the dominant global payment system.
The model’s graphical representation, plotting price and time in log scale, reveals Bitcoin’s relentless adherence to a power law. Fred Krueger often emphasizes this aspect, emphasizing the model’s accuracy in predicting Bitcoin’s historical movements.
Power Law Proponents Believe the Model Is Different Than S2F
While critics and supporters engage in debates about the model’s feasibility, proponents argue that the Power Law is distinct from other models like Plan B’s stock-to-flow (S2F) model. Unlike the S2F model, the Power Law envisions Bitcoin’s growth mirroring that of a city—steadily expanding over time, rather than experiencing unpredictable bursts.
Despite skepticism, the Power Law model boasts a 95.3% accuracy, validated by regression analysis. It challenges mainstream growth beliefs by proposing a steady yet substantial growth in Bitcoin’s value, with a fixed rate of 5.8. Proponents draw confidence from a deep analysis of Bitcoin’s historical price movements since its inception.
In essence, Power Law proponents argue that Bitcoin’s growth exhibits a scaling relationship with time, akin to phenomena observed in physics and biology. This relationship, visible in log-log plots, suggests a proportional change in Bitcoin’s value relative to time, independent of its initial size.