The “Bitcoin power law” describes how Bitcoin’s price tends to increase over time in a predictable pattern despite short-term crashes. This happens because Bitcoin has a fixed total supply of 21 million coins and periodic events that reduce the rate of new coins being created https://copyenglish.com/the-power-law-of-bitcoin-why-scarcity-drives-value. As demand grows while supply remains limited, Bitcoin’s scarcity makes it more valuable, much like digital gold. This scarcity, combined with growing adoption, drives long-term price growth even after dips in the market.