Bitcoin, Power Laws & Network Effects
For those of you who need some hodling support during this correction, this one’s for you: real alpha.
Giovanni Santostasi, the guy who discovered that Bitcoin’s price appears to grow over time following a power law, was interviewed by Natalie Brunell. If you can get past his strong Italian accent, he explains beautifully why Bitcoin is not growing exponentially like bacteria, but rather scaling like a city. Diminishing returns but coming from a very high Level.
And this idea doesn’t just apply to price. He also connects it to Bitcoin’s hash rate and the growth in wallet addresses over time. Really fascinating episode.
I ended up ordering Geoffrey West’s book “Scale” to dive deeper into the topic. Highly recommended if you’re interested in the intersection of networks, complexity, and Bitcoin.