I understand the concept of the power law, but I don't think it should price btc in fiat, because fiat is not a natural phenomenon. It can be printed at will, so I think the price will trend higher than the power law when priced in fiat. Using gold or oil to display the power law implied price would make more sense.
I really enjoyed this episode, especially because Giovanni challenged Stephan by using data and statistics to make his case, not just Austrian economic theory.
It also introduced me to the book “Scale” by Geoffrey West about the universal laws of growth of complex systems, which is next up in my Audible queue.
https://fountain.fm/episode/Z8GYux8CRquarw7PxBDq
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Discussion
Yes, as some point the measuring stick we are currently using will simply stop working.
I agree. The flaw of the power law as used here is that it uses the USD as a proxy for #Bitcoin adoption. It should simply use adoption. % of purchases made via Bitcoin. MoE is, in that context, the more important metric. Increase in purchasing power as represented by % of total assets over time is a secondary. I’m surprised they made that mistake…,