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The book "The Price of Tomorrow" by Jeff Booth claims that the price of goods becomes cheaper in Bitcoin because technology creates deflation. This chart tests that claim with real data.
Panel 1 shows that technology has made cars slightly cheaper over 16 years. About 1.5x in real value. That's the green line in Panel 2.
Panel 2 shows what actually happens when you price cars in Bitcoin. The price of a car from 2.1 million BTC in 2010 drops to 0.22 BTC in 2026. That's a 10 million-fold decrease. Blue line.
The green line is nearly flat. The blue line crashes. Technological deflation predicts a price decrease of 1.5x. In reality, the price drops 10 million times.
Where does the other 9,999,998.5x come from? Bitcoin network growth follows the power law 10M( = t^5.69.
The mechanism: epidemic spread dynamics on a scale-free network )βA = 3.05( combined with Metcalfe's network value scale )βM = 1.84(. Their product yields β = 5.60, consistent with the observed 5.69.
The Bitcoin network effect is 6.5 million times stronger than technological deflation in explaining why prices become cheaper in BTC.
Booth is correct in pointing out the trend but misses the magnitude by a factor of millions. Goods do not become cheaper in Bitcoin because of technological deflation. They become cheaper because Bitcoin adoption follows the mathematical law of network growth.
Technological deflation explains only 0.000015% of that effect. The power law of Bitcoin explains 99.999985%.
Data does not lie. Bitcoin does not grow because it reveals deflation. Bitcoin grows because the spreading network through epidemic dynamics and scale via Metcalfe's Law produce a power law trajectory. That’s physics, not monetary policy.