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Faira | 22 Jul 2025 - 19:46:38 |
203 Posts |
What exactly is the ‘power-law of Bitcoin’ and how does scarcity play into its long-term value? |
Ducher | 22 Jul 2025 - 19:47:22 |
201 Posts |
The power‑law of Bitcoin describes how its price follows a mathematically consistent growth pattern over time—when plotted on a log-log chart, price versus time forms a nearly straight upward trend, suggesting that duration since inception strongly correlates with value https://copyenglish.com/the-power-law-of-bitcoin-why-scarcity-drives-value. Underlying that pattern is Bitcoin’s immutable scarcity: there will ever only be 21 million coins, and halving events dial down supply regularly, reinforcing demand pressure from both new and existing buyers. This scarcity, coupled with network effects and human FOMO, is what gives the power‑law its teeth—price dips don’t alter the trend over the long term, and the fixed supply ensures the system remains deflationary and attractive as adoption rises. |