The Power Law that describes #Bitcoin is becoming more difficult to deny as time goes on.
. . .
If you had thought of modeling Bitcoin's price in time as a power law (y = a * x^b) before 2015, you either:
A) would have probably guessed the scale coefficient wrong (that's the exponent in the power law), or
B) you would have measured the RIGHT scale coefficient, but would have had little reason to trust it because the correlation was pretty poor (<0.85).
...that said, if you had nailed the #powerlaw parameters prior to 2016, you were probably a genius.
A few key takeaways here:
1. Power laws are more accurately identified and characterized the more orders of magnitude they scale; they need to stabilize and 'reach equilibrium.'
2. From the observed data, we can see Bitcoin is trending towards an ultimate scale coefficient of ~5.7
3. The accuracy of the model (r^2) is continuing to trend higher than the current ~0.96, a truly incredible correlation, which continues to strengthen thanks to the power law.
Studying Bitcoin through the lens of a Power Law should increase anyone's confidence in its role as a natural, growing, dominant force of nature.