This model, which I'm calling the Logarithmic Fractal Growth Mode (L.F.G), uses Bitcoin's mathematical monetary policy to evaluate the future possible price valuation.
It takes into account fractal (and logarithmic) growth as well as how those who hold bitcoins might react to certain events such as changes in supply and demand. It also shows that it is mathematically logical that someday it must become stable.
The information gained from knowing this helps people make more informed decisions when buying bitcoin and thinking of its future possibilities.
The model can serve as some type of general guideline for determining how much bitcoins should be worth in the future if it follows a certain path from its current price.
Modeling Bitcoin's money supply mathematically, and knowing that there is a finite number of them, makes this whole process much more rational than just thinking about the possibilities in pure subjective terms.
Before going any further I want to say that no one can know with absolute certainty what will happen to bitcoins price in the future, but using mathematics gives us an idea of where things are headed.
The results presented here are based on very reasonable assumptions for how bitcoin might continue to grow (and then level out) once there are over 21 million bitcoins in existence.
The model shows that bitcoin's price can never go down to zero (thus creating the "death spiral" phenomenon), and as such, bitcoin has an extremely high probability of becoming stable as it approaches infinity.
Conversely, this model also shows that at some point there is a high probability that bitcoin will not continue to grow exponentially forever.
Credit goes to Quantadelic for the awesome original script.
@ninjanew, Probably works on any asset that follows a similar emission strategy as Bitcoin.
AriRudd
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OnChainArt
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This script is not a proper tool, avoid it. The fact that it believes the Covid Crash to be part of the 11-year-support instead of an invalid market crash is ample proof. Don't use it.
shmaiz
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Hello AriRudd. I hope you're doing well in this unstable markets. Is there an update or any modification to this script??? BTC has been below the lowest band for a month now... That can't be right. What do you think? Also would like to express my gratitude for such a beautiful visible and clear indicator.
SpyMasterTrades
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Thank you for contributing this script to the community! Quite underrated in my opinion.
yao_916
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Very good and good way to learn.
BillionaireLau
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Hello, I have seen many scripts in the community is going after @quantadelic hardcoded logarithmic growth curve published in 2019 and other users found the hardcoded curve stopped updating so they have to make a new hardcoded script after a period of time. a lot of redundant hardcoded "Bitcoin growth curve" scripts was born in the public library.
- Auto-update the curve (it would be a hard-coded, locked coordinate script like this code) - Shape of lines are all linear adjustable - Height difference of levels and zones are customizable - Support and resistance levels are highlighted
@quantadelic already left the community, he is unable to reply comments or publish new script. So we need to maintain this script by ourselves now.