The Bitcoin Layer

$1 Million Bitcoin: A Scientific Prediction Explained

29 snips
Aug 11, 2025
Nik Bhatia talks with Stephen Perrenod, an astrophysicist and mathematician with expertise in Bitcoin power laws. They dive into the scientific reasoning behind Bitcoin potentially reaching $1 million, examining mathematical modeling and historical price patterns. Stephen explains how this approach contrasts with the stock-to-flow model and highlights the importance of market volatility. They discuss future price trajectories, the role of institutional investments, and Bitcoin's evolution, framing it as a transformative force in finance.
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INSIGHT

Two Network Power Laws Make The Six

  • Bitcoin's ~6 power-law arises from two nested network laws: price ~ addresses^2 and addresses ~ time^3.
  • Stephen Perrenod shows multiplying those exponents (2×3) yields the observed ~5.8–6 scaling.
ANECDOTE

Money As Energy: Historical Roots

  • Stephen traces the idea of energy-backed money back to Frederick Soddy and Buckminster Fuller as historical precedents.
  • He frames Bitcoin as a scientific, energy-rooted monetary standard that Fulller and Soddy had anticipated.
INSIGHT

Hashrate Scales Network Value

  • Hash rate and security materially affect network value; higher exahash attracted ecosystem participants and raised price.
  • Perrenod contrasts Bitcoin with Bitcoin Cash to show how hash power drove divergence in adoption and price.
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