Understanding Bitcoin’s Power Law Curve

12 Oct 2025 · 1 min

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Short excerpt from a YouTube video by Kosta Ouzas explaining the idea of a power law as it applies to Bitcoin and how it appears on graphs. The speaker notes that a power law appears as a straight line on a log–log plot (straight only when time is logged), but when plotted with linear time the curve will appear curved over long periods; humans more naturally perceive linear time, so the straight-line form on log scales can be less obvious visually. The speaker also states that the quantitative calculations are based on the power law.

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You see the general power law I explained many times. Unfortunately, there is no a simple way of showing the log log graph. It's more natural for humans to see time linearly. So the straight line of a power law is not completely clear. It's straight here because if you look at a short time, it will still look like a straight line. But if you look at over long period of time, of course is curved, right? So if I zoom out, you can see that it starts to be curved. It's only a straight line if I take also the log of time. But it all the calculations are based on the power law.