John Christensen on Nostr: My concern with the power law is its broad range. It’s like saying, "We know the ...
My concern with the power law is its broad range. It’s like saying, "We know the price will be between $100 and $1,000,000 within the next 1000 years," which is obviously an exaggeration, but it highlights the issue.
Another aspect I want to explore is whether the power law applies to currencies other than the US dollar. If it doesn’t hold true in other currencies, then there’s no reason to assume it should in US dollars either. And if the power law once worked in another currency but then broke down, it suggests that it could also fail in the US dollar.
I’m not trying to dismiss the power law. To be honest, for a while, it brought me a lot of excitement. No matter what model you consider, the trend always seems to point up and to the right.
Another aspect I want to explore is whether the power law applies to currencies other than the US dollar. If it doesn’t hold true in other currencies, then there’s no reason to assume it should in US dollars either. And if the power law once worked in another currency but then broke down, it suggests that it could also fail in the US dollar.
I’m not trying to dismiss the power law. To be honest, for a while, it brought me a lot of excitement. No matter what model you consider, the trend always seems to point up and to the right.