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🟧 How Does Bitcoin Work? 8/8 – The Future: The Bitcoin Standard & the Power Law 📈

We’ve worked our way through the story of Satoshi, the blockchain, miners, nodes, wallets, Lightning, and open source. You now know how Bitcoin works. To wrap up this series, we’ll ask the most important question of all: Where will this journey take us in the coming years and decades?


The future of Bitcoin cannot be predicted by reading tea leaves, but rather by two fundamental principles: economic logic and mathematical growth patterns.


Here’s a look at what lies ahead:


1. The Bitcoin Power Law (The Mathematical Power Law) 📐

Many people try to chart the Bitcoin price using chaotic lines or short-term news. But if you look at Bitcoin over the long term and on a so-called logarithmic scale, you’ll recognize a fascinating pattern: the power law.


In physics and biology, power laws describe natural growth processes (such as the structure of galaxies or the growth of cities). For over 17 years, Bitcoin has followed such a mathematical law with astonishing precision. It describes the long-term, unstoppable adaptation driven by the network effect. In the short term, the price fluctuates wildly, but in the long term, the mathematical reality of scarcity pulls the price upward like a magnet.


2. The Bitcoin Standard: The Return to Hard Money 🏛️

In his bestseller *The Bitcoin Standard*, economist Saifedean Ammous describes how societies have historically flourished whenever they have used “hard money” (which cannot be arbitrarily multiplied, like gold in the past).

Our current fiat money system (euro/dollar) is constantly losing value due to inflation. Bitcoin is the hardest money humanity has ever invented. The long-term vision is a transition to a new standard: a global economic system in which prices are measured in a currency with an absolutely limited supply. This rewards long-term saving rather than blind consumption on credit.


3. The Unstoppable Adoption (Hyperbitcoinization) 🌍

The journey began as an experiment by a few IT geeks. Today, publicly traded corporations (such as MicroStrategy) hold billions in Bitcoin, the first countries (such as El Salvador) are using it as legal tender, and giant asset managers (such as BlackRock) have integrated it into traditional Wall Street.

Bitcoin is growing faster than the internet did in its early days. Once this network is used by billions of people—whether as a hedge against currency devaluation in developing countries or as digital gold in the Western world—it will change the rules of the game when it comes to global power.


💡 The takeaway from this entire series:

Bitcoin is not a passing trend, nor is it merely a speculative toy. It is a fundamental discovery for humanity: the first time we’ve created absolute, decentralized digital scarcity. A system that belongs to no one but is open to everyone.


It’s not too late—we’re just at the beginning of this evolution.


That wraps up my 8-part series on the basics of Bitcoin! 🚀

Which part was the most eye-opening for you? Are you ready for the Bitcoin Standard, or do you still have doubts? If you have any questions, feel free to leave them in the comments!👇

A huge thank you to all my new followers and everyone who followed the entire series—feel free to follow me for more content on my board! 🟧✨


$BTC (-1.14%)
#bitcoin
#bitcoinstandard
#powerlaw
#makroökonomie
#finanzen
#investing
#krypto
#zukunft
#anfänger
#finanziellefreiheit

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8 Comments

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In my view, the big problem with the power law model is the valuation of the Bitcoin price in dollars. Fiat money isn’t a good yardstick for measuring anything. Accordingly, I believe the Power Law model will eventually break down. Maybe even very soon, if BTC takes another dive😅 but we’ll see. It’s certainly fascinating and shows that the BTC price isn’t rising linearly or exponentially—but has so far been behaving a bit like a living organism.
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@stefan_21 You can measure it in Big Macs. 😅
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@TotallyLost They're a better benchmark, but they're not perfect either, because they keep getting smaller over time🥲
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@stefan_21 But wasn't the power law broken just recently? 🧐
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@Da_Fischi Depending on which chart you look at, we were either just below the support line or right on it. We don’t know if it’s been broken yet, because the lines change as the price moves :D
It’s quite possible that we were just below it now and will find out in a year that we were actually within it after all 🤷‍♂️, but that’s exactly why I’m saying: the dollar isn’t a good benchmark. It can’t really work that way 😅
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@stefan_21 You’re really hitting on a core issue there! “Elastic fiat money” naturally skews any long-term mathematical projection.

But the comparison to a living organism is spot on. Just like an organism, Bitcoin adapts to its environment—no matter how chaotic the surrounding fiat landscape is. Even though it’s not perfect, I think the power law model comes closest to predicting its future development. How else would you measure it?
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@Philipwdr I think it would make more sense to measure absolute numbers, like the number of addresses with a balance or something like that. It’s hard to project the price in dollars into the future when you have no idea how the dollar’s purchasing power will change. On the other hand, the power law—with its upper and lower bounds—also has a relatively wide margin of error. We’ll see how it plays out :)
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Just imagine that, since its introduction, the euro has lost nearly 38% of its purchasing power relative to food and relative to gold (if gold is taken as an objective benchmark—with “1.5–2% growth” in mine production), then the loss in purchasing power is actually nearly 80%.

The dollar over the same period since 2002: it has lost nearly 50% of its purchasing power relative to food and nearly 92% relative to gold 🤯
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