The Stock to Flow / Power Law Scarcity Thesis CC: @100trillionUSD
Do you think it holds this cycle?
Thesis:
Every halving, Bitcoin Stock to Flow (measure of scarcity) doubles and market value increases 10x, a constant factor based on a power law relationship.
A power law is a relationship in which a relative change in one quantity gives rise to a proportional relative change in the other quantity, independent of the initial size of those quantities.
NB: A power law can be turned into a linear relationship if we plot the variables on logarithmic axes (orange line below).
