Giovanni Santostasi's power law is a near-perfect view, for me. This power law predicted what we see in Bitcoin today, where it will get to a stage that the returns start diminishing, that is the true reflection of it if we look towards that angle as it matures. Bitcoin tendency to give return at $100k, is not the Bitcoin tendency to give return $30K. The return will greatly decrease as prices increases. For example, at $500k, it will take Bitcoin at $1m to deliver the double of the investment. But at lower price, multiples of that can be made easily. This is a true reflection of the future reality and this formula speaks best of the future obvious.
Price=A×Time
BA and B are constants. A= Scaling factor and B= Exponent (growth).
Thank you fillippone for sharing this rarely looked into but useful article.
Take the case of the power law applied to the city.
According to a power law, Can a city infinitely grow?
I don't think so.
The model says that the growth of animals, cities, and other living creatures observed so far, follows such a scheme.
Of course, if we don't see animals that are 10x bigger than the blue whale, probably other factors impact the growth of such an animal. Of cours,e the model is not complete.
The animals, cities and other living creature's growth suggested are not to compare but to acknowledge the developmental stages. In babies, the growth is rapid, which continues through to some adult stages where the growth start slowing down until full maturity. Cities too, the infrastructural development and new building are rapid at a point, but it gets to a point where they start diminishing for most places have been developed and procurement of land and properties will be expensive by then.