Post
Topic
Board Economics
Re: A Predictive Model for the Growth of Bitcoin Illustrated in Pricing Data Pattern
by
bb113
on 16/02/2014, 23:01:51 UTC
Cool.

People don't understand what chaos is, its sensitivity to initial conditions that yields prediction impossible because of the butterfly effect. Chaos is posed as deterministc, only the approximation of present conditions does not equal the approximation of their future states. But bitcoin is not a deterministic chaotic system, its indetermined because of its self-referentiality, yet linear, because it has a positive feedback loop. I think it will always be volatile (because, there is no possible equilibirum if the value is more than 0) but its area of volatility will change upwards with its spread, and can be rationaly speculated upon by investigating trends of spreading and the conditions of spreading.

That said the patterns on graphs tell us nothing, they can only serve as a signs to investigate. I'm sure you are right when it comes to the first phase, thats the reason it always pays off to make new coins.


Can you give links or more detail as to why feedback loops are incompatible with deterministic systems?