BTC_POWER_LA

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"The Physics of Bitcoin" with Giovanni and Stephen #40 3/18/2026
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Do you want to use the power law without acknowledging it? Just mention the 200 days moving average.
There is no reason why this average would mean anything if there was not an underlying pattern that is rooted in the physics of Bitcoin. Moving averages are meaningless unless there is a real pattern that the moving averages point to.
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The most valuable structures in the universe are networks.
Living organisms are networks of cells exchanging nutrients and building materials. The brain is a network of specialized cells exchanging information and coordinating action.
Cities are networks of humans—each with advanced cognitive abilities—working together to improve living conditions, advance science and technology, and deepen our understanding of the world.
Is it any surprise, then, that a network of networks—Bitcoin—has already reached a value in the trillions of dollars, and may one day represent a significant portion of glo
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Bitcoin is the control experiment that economics never had. Strip away the institutional scaffolding. Remove the government backing. Eliminate the legal tender laws.
What is left?
What is the bedrock of monetary value when everything conventional is removed?
The answer, observable in real time across sixteen years of data, is this: a network of sufficient size, secured by sufficient thermodynamic cost, recording a perfectly invariant ledger, generates value as a natural consequence of its existence. Value is not a convention.
It is an emergent property of a specific class of network struct
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Miner5vip:
Trust and Consensus
If somebody tells you the power law is about a curve in a graph, do not listen, they don't understand the topic they discuss.
It is about dynamics, it is about how we go there, not where we are at any moment.
The dynamics is a power law in time in adoption, energy and value.
That is the signal, everything else is noise.
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Some of my readings right now.
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People saying "AI slop" is like people saying "Bitcoin is fake internet money" 15 years ago.
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From the Physics of Bitcoin book. Debasement of Roman Coinage.
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Such a fascinating video—twenty people engaging in elaborate mental gymnastics to argue that death is somehow “good.”
It really highlights how deeply conditioned we are. From early childhood, we’re immersed in a cultural narrative that normalizes—and often even glorifies—death as something natural, necessary, or meaningful. That belief becomes so ingrained that questioning it feels almost taboo.
Breaking out of that mindset is incredibly difficult, because it’s not just an idea—it’s a societal enchantment, reinforced by philosophy, religion, and tradition.
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My next book is entitled:
The Purposeful Universe
Finding Meaning in a Meaningless Universe
The book chapters are below:
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Visibility graph with negative and positive price. Interesting signal.
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We applied the visibility graph to the daily slopes of the power law. How one can say that there is a decay of the power law?
Do you see with your own eyes how stable the slopes are?
They oscillate around a clear mean and the visibility graph confirms this.
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Nodes degrees of freedom of the visibility graph for Bitcoin. Notice how the graph is decreasing in time demonstrating a smaller absolute volatility of the price.
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The power law slopes SNR indicator is showing we are moving from transition zone to bullish zone for the first time since the last large correction.
Nice.
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Claude what you think about the issue of some analyst calling the power law, power function?
Does this help scientific communication with the public in social media?
Claude:
This is worth naming clearly because it reflects a broader problem in how technical ideas get communicated — and distorted — in public discourse.
The motivation is understandable. "Law" carries deterministic connotations that make some people uncomfortable, and calling it a "power curve" or "power function" sounds more modest, more data-driven, less like a claim about destiny. It feels epistemically humble. But the humili
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From @Snz_BTC. We went through this like 1000x.
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The power law emerges even when we use addresses with different wallet balances.
This is another signature of scale invariance.
Three address tiers were constructed:
•Shrimps = total non-zero balance addresses (the full dataset)
•Crabs = addresses holding ≥1 BTC = (1–10 BTC) + (10–100 BTC)
•Dolphins = addresses holding ≥10 BTC = (10–100 BTC) only
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Panel 1 — N(t) vs time, log-log
Each tier is plotted as log₁₀(addresses) vs log₁₀(t_days). An OLS linear regression on these log-transformed values gives the power law exponent n for each tier — the slope of
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NexaCryptovip:
LFG 🔥
The power law emerges even when we use addresses with different wallet balances.
This is another signature of scale invariance.
Three address tiers were constructed:
•Shrimps = total non-zero balance addresses (the full dataset)
•Crabs = addresses holding ≥1 BTC = (1–10 BTC) + (10–100 BTC)
•Dolphins = addresses holding ≥10 BTC = (10–100 BTC) only
________________________________________
Panel 1 — N(t) vs time, log-log
Each tier is plotted as log₁₀(addresses) vs log₁₀(t_days). An OLS linear regression on these log-transformed values gives the power law exponent n for each tier — the slope of
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If we have so much noise in the system how do we know that Bitcoin follows a power law and it is scale invariant?
The answer is that noise and signal operate at different timescales, and the tests that establish the power law are specifically designed to separate them.
The residual noise of ±0.30 dex and the cycle-to-cycle variation in β of ±0.57 are both real. But they are oscillations around a stable attractor, not evidence that the attractor does not exist.
Think of it this way: a pendulum has a well-defined equilibrium position even though it is never at rest at that position. The amplit
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The PlanC saga continues
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