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The Bitcoin Power Law with Giovanni Santostasi (WiM509)
The "What is Money?" Show
Small Changes Yield Big Results
The relationship between temperature and luminosity in stars illustrates how small changes can lead to significant outcomes, highlighting a similar dynamic in Bitcoin. Specifically, doubling a star's temperature results in a sixteen-fold increase in light due to the fourth power relationship. Analogously, in Bitcoin, a slight change in time correlates to a substantial change in price, indicating a non-linear relationship where price can be expressed as proportional to time squared. This suggests that holding Bitcoin over a longer duration can yield exponentially greater returns.
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