1. What is the Bitcoin Power Law Model?

The Bitcoin Power Law Model is a mathematical model that estimates Bitcoin's price based on the number of days since its genesis block. It demonstrates a remarkably consistent long-term trend in Bitcoin's price appreciation.

2. How Does the Calculator Work?

The calculator uses the Power Law equation:

Where:

• \( Days\ Since\ Genesis \) — Number of days since Bitcoin's genesis block (January 3, 2009)
• \( \log_{10} \) — Base-10 logarithm

Explanation: The equation models Bitcoin's price growth as a power law function of time, showing how its price tends to follow a predictable long-term trajectory despite short-term volatility.

3. Importance of the Power Law Model

Details: This model has historically provided a reliable lower bound for Bitcoin's price over multi-year timeframes, helping investors understand long-term valuation trends.

4. Using the Calculator

Tips: Enter the number of days since Bitcoin's genesis block (January 3, 2009). The calculator will estimate the expected Bitcoin price according to the power law model.

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this model?
A: The model has shown remarkable accuracy over Bitcoin's lifetime, typically serving as a lower bound during bear markets.

Q2: What are the model's limitations?
A: It doesn't predict short-term price movements and assumes no fundamental changes to Bitcoin's adoption trajectory.

Q3: Who developed this model?
A: The model was popularized by Giovanni Santostasi, though similar observations about Bitcoin's power law growth have been made by others.

Q4: Does this account for Bitcoin halvings?
A: The model emerges organically from Bitcoin's adoption curve and naturally incorporates halving effects without explicit parameters.

Q5: How should investors use this information?
A: As one of many tools for understanding Bitcoin's long-term valuation, not as a short-term trading signal.