BTC_POWER_LA
People have the wrong interpretation of the power law. They think in bands around the power law. These are relatively large (we shown in the past that they are not if one focuses on where Bitcoin spends most of its time).
But really the concepts of bands is not what matters in terms of understanding the true Bitcoin behavior. One has to use the language of normalized returns or daily slopes to truly understand the significance of the power law.
1. The core problem: raw returns are misleading
If you look at Bitcoin’s raw daily returns or raw price changes, you immediately face two problems:
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But really the concepts of bands is not what matters in terms of understanding the true Bitcoin behavior. One has to use the language of normalized returns or daily slopes to truly understand the significance of the power law.
1. The core problem: raw returns are misleading
If you look at Bitcoin’s raw daily returns or raw price changes, you immediately face two problems:
N
BTC1,09%






