Gen X Bitcoin
The Power Law

The price model behind every Bitcoin number on this site.

Bitcoin's historical price has followed a Power Law curve with 95.65% statistical fit since the day the network started. But no asset can compound faster than global wealth forever. This page explains the formula, the saturation problem after 2040, and the conservative cap we use for retirement planning.

TL;DR

Through 2040: Bitcoin price follows the B1M Power Law formula, which fits the daily price record since 2009 with R² = 95.65%.

2040–2045: The model treats this window as a saturation transition. The raw Power Law would imply Bitcoin capturing too much of global wealth too fast.

After 2045: The calculator caps Bitcoin's network value at 10% of projected global personal wealth. The price then grows roughly with the global economy.

All prices on this page are nominal — meaning future-dollar amounts, not adjusted for inflation. The calculator translates these into today's-dollar planning numbers using its inflation model.

01 What the Power Law actually is

A statistical pattern, not a prediction.

The Bitcoin Power Law is an observation, not a forecast. Plot Bitcoin's daily closing price against the number of days since the network's first block on a log-log chart, and the result is close to a straight line. That line is the Power Law.

The Power Law as a Bitcoin model was originally developed by physicist Giovanni Santostasi, who has published the foundational research showing how Bitcoin's adoption, hashrate, and price all follow related power-law dynamics. The specific formula and statistical fit used on this site come from the B1M project (b1m.io), which maintains a live version of the curve fitted against daily closing prices through 2025. B1M reports a statistical fit of R² = 95.65%, meaning roughly 95.65% of the variation in Bitcoin's daily price across 16 years is explained by a single equation with two parameters.

That is an unusually clean signal for a financial asset. Stocks, real estate, and gold do not fit any simple curve nearly that well over similar timeframes. Whether Bitcoin continues to follow this curve is the open question. The fact that it has followed it this far is the starting point.

Show the math The B1M formula
Price = 10−1.847796462 × (Days since genesis ÷ 365.25)5.616314045
Genesis block: January 3, 2009. R²: 95.65% against daily closes through 2025. Bands: Lower = 0.5× model price. Upper = 3× model price. The bands represent the historical cyclical variation around the trendline.

What the formula says about the next twenty years

Plugging in the years between now and 2045 produces the trajectory below. These are nominal Power Law prices — what the formula outputs, no adjustments yet.

Year Power Law price (nominal) Lower band (0.5×) Upper band (3×)
2026$159K$79K$477K
2030$490K$245K$1.47M
2035$1.55M$775K$4.65M
2040$4.03M$2.01M$12.08M
2045$9.10M$4.55M$27.31M

Values calculated from quarterly Power Law data. All figures are nominal — i.e., 2045 dollars, not adjusted for inflation back to today.

02 Why the Power Law cannot continue forever

The saturation problem.

The formula is mechanically simple, which is part of what makes it useful. It is also part of what makes it dangerous as a long-term planning tool. The Power Law has no internal mechanism to slow down. Plug in 2060 or 2075 and it dutifully spits out a price.

The problem is that those prices imply Bitcoin capturing an implausibly large share of the world's wealth. Bitcoin's total supply is capped at 21 million coins. Multiply the projected price by 21 million and compare against projected global personal wealth — UBS's 2025 Global Wealth Report puts the current figure at roughly $471 trillion, growing around 4% nominally per year.

Year Power Law price (nominal) Network value % of global wealth
2030$490K$10.3T1.7%
2040$4.03M$84.6T9.4%
2045$9.10M$191.1T17.6%
2050$16.22M$340.6T26.1%
2060$55.25M$1,160T60.0%
2070$151.06M$3,170T110.8%
2080$354.31M$7,440T175.6%
The contradiction

By 2070, the unconstrained Power Law implies Bitcoin's market capitalization exceeds total projected global personal wealth. By 2080, it nearly doubles it. Both outcomes are mathematically incoherent. Something has to give before that happens.

This does not mean Bitcoin cannot appreciate beyond 2045. It means the historical Power Law cannot, by itself, describe what happens once Bitcoin becomes a meaningful share of the world's financial system. At that scale, Bitcoin's price stops being a function of adoption and starts being constrained by global wealth growth itself.

03 The model the calculator uses

Power Law through adoption. Cap after saturation.

The calculator treats the Power Law as an adoption-phase model, not a forever model. It uses three distinct phases.

Today → 2040
Power Law phase
The B1M formula runs unmodified. Bitcoin grows along the historical curve, which already slows over time without any external correction. This is the highest-confidence portion of the model.
2040 → 2045
Saturation transition
By 2040, Bitcoin's projected network value is roughly 9% of global personal wealth. The model still tracks the Power Law through this window, but treats the period as a soft transition zone — confidence in the curve declines as the share of global wealth rises.
After 2045
Global-wealth cap
Bitcoin's network value is capped at 10% of projected global personal wealth. The price then grows roughly with global wealth itself (~4% nominally per year). This prevents the model from implying Bitcoin captures more of the global economy than is plausibly possible.

The formula, in plain English

For any given future date, the model first calculates what the raw Power Law would say the price should be. Then it calculates what the price would be if Bitcoin's market capitalization were exactly 10% of projected global personal wealth on that date (using a $471T baseline growing at 4% per year, divided by Bitcoin's 21 million coin supply). The model uses whichever number is lower.

In practice this means the Power Law runs unmodified until roughly 2045. Around that point the curve crosses 10% of projected global wealth, and from then on the cap takes over. The price keeps growing — but at the pace of global wealth, not the pace of the original curve.

Show the equations The model, formalized
RawPowerLawPrice(date) = 10−1.847796462 × years_since_genesis5.616314045

ProjectedGlobalWealth(date) = $471T × 1.04(year − 2024)

CapPrice(date) = 10% × ProjectedGlobalWealth(date) ÷ 21,000,000

RecommendedPrice(date) = min(RawPowerLawPrice, CapPrice)

The trajectory under this model

Year Recommended price (nominal) % of global wealth Engine
2030$490K1.7%Power Law
2035$1.55M4.4%Power Law
2040$4.03M9.4%Power Law
2045$5.11M10.0%Cap engages
2050$6.22M10.0%Cap
2060$9.21M10.0%Cap
2070$13.63M10.0%Cap
2075$16.59M10.0%Cap

All prices nominal. By 2075, the recommended model produces a price about 8% of what the unconstrained Power Law would imply. That is the saturation correction working.

📈
A live chart is coming.
A future version of this page will overlay the raw Power Law, the recommended capped model, and the alternative scenarios on a single log-scale chart from 2026 through 2075. For now, the tables above carry the same information.
Why this is conservative

The 10% cap on global personal wealth is a deliberately conservative ceiling. By comparison, gold today represents roughly 2% of global financial wealth, and real estate represents roughly 60%. Treating Bitcoin as capable of reaching half of gold's share — without exceeding it — is a reasonable upper bound for a mature reserve asset. It is bullish enough to make the math interesting and conservative enough to be defensible if asked.

The author's own view is that the 2050 and 2060 prices may well be higher than the default model implies. A 10% cap is the conservative planning number — the one that holds up in a conversation with a financial advisor or a skeptical spouse. The actual outcome could be closer to the planning plateau or aggressive plateau scenarios below. The point of the default is not to predict where Bitcoin lands. It is to make sure the retirement math still works if Bitcoin underperforms the bullish case.

04 Alternative scenarios you can compare against

Other defensible curves, and why they're not the default.

The 10% global-wealth cap is the calculator's default because it ties Bitcoin's long-term price to a macroeconomic denominator that has actual physical meaning. But other reasonable models exist. Each makes a different bet about what happens after saturation. The table below shows what each produces in 2050, 2060, and 2070.

Scenario 2050 2060 2070
10% wealth cap Default Power Law until 10% of global wealth, then grows with global wealth $6.22M $9.21M $13.63M
Conservative plateau Power Law through 2045, then 1% annual growth $9.58M $10.58M $11.69M
Planning plateau Power Law through 2045, then 2.5% annual growth $10.29M $13.17M $16.85M
Aggressive plateau Power Law through 2045, then 5% annual growth $11.62M $18.92M $30.82M
Raw Power Law (uncapped) Illustrative only. Mathematically incoherent past ~2050 $16.22M $55.25M $151.06M

The raw Power Law is included for reference, not for planning. Showing it makes the saturation correction visible: by 2070, the unconstrained curve has diverged from the recommended model by more than 10×. That is the size of the assumption being made.

05 Nominal vs. real, and why this distinction matters

These numbers are future dollars, not today's dollars.

Every price on this page is nominal — the actual dollar figure you would see at that future date. The 2045 price of $5.11M is $5.11M of 2045 dollars, which will buy less than $5.11M of today's dollars because of inflation between now and then.

The B1M Power Law formula is built on nominal data — historical Bitcoin prices in then-current dollars going back to 2009. The global-wealth cap is also computed in nominal dollars, growing the $471T baseline at 4% nominally per year. Mixing nominal and real numbers would produce a model that secretly double-counts inflation. Keeping both halves nominal keeps them consistent.

The calculator's retirement math, however, is in today's dollars. When you look at "you need 0.94 BTC at retirement," that 0.94 BTC is computed by translating your today's-dollar retirement income through the inflation model into future nominal dollars, then dividing by the nominal Bitcoin price at that future date. The two halves of the math live in nominal space, and the answer is the BTC count, which is unit-free.

The short version

Prices on this page: future nominal dollars.
Retirement income shown in the calculator: today's dollars.
The BTC count connecting them: unit-free, no inflation adjustment needed.

06 What the Power Law does not do

The list of things this model is not.

The Power Law is a useful planning tool. It is not a guarantee, an oracle, or a prediction in the strict sense. The honest list of things it does not do:

The model is conservative on the things that can be modeled and silent on the things that cannot. That is the most a planning curve should do.

The honest version.

The Power Law is the cleanest statistical signal in Bitcoin's price history. R² = 95.65% is not a fluke. The curve has held through three halvings, a global pandemic, multiple bull and bear cycles, the collapse of major exchanges and stablecoins, and one inflation shock. It has not held through everything Bitcoin's future will throw at it, because Bitcoin's future has not happened yet.

What this site does with the Power Law is the most honest thing the math allows. Take the historical fit seriously through the adoption phase. Acknowledge it has to stop somewhere. Pick a saturation ceiling — 10% of global wealth — that is bullish enough to be interesting and conservative enough to be defensible if a financial planner asks where the number came from. Keep the alternative scenarios available so you can see how much the answer depends on the assumption.

If you do not believe the Power Law, the calculator still works. Run it with Bitcoin at 0% allocation and see what your retirement looks like under inflation alone. That is the floor. Then add Bitcoin back in at whatever percentage and curve you find plausible, and see how much it moves. The shape of the change is the value. The exact numbers are an estimate.

The Power Law is a model. The calculator uses it because it is the best one available, not because it is true.

Now run your numbers.

The calculator uses this model as its default. Move the allocation, watch the plan change.

Open the calculator →

Sources & references

  1. Giovanni Santostasi — original Power Law research connecting Bitcoin's price, adoption, and hashrate. Published independently across several papers and Twitter threads. Search "Santostasi Bitcoin Power Law" for the most current writeups.
  2. B1M Power Law Curve: b1m.io/curve — the live fitted formula, R² calculation, and the 0.5×/3× band methodology used on this page.
  3. UBS Global Wealth Report 2025: ubs.com — the $471T global personal wealth baseline used for the saturation cap.
  4. ARK Invest, Bitcoin Price Target 2030: ark-invest.com — institutional valuation methodology for context.
  5. VanEck, Bitcoin Long-Term Capital Market Assumptions: vaneck.com — an alternative saturation-aware framework.
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