Bitcoin Growth Ratio deducted by SQRT due to Inverted Yield
Due to Bitcoin halving every 4 years, its growth rate (yield) decreases by half every 4 years (inverted yield), which means its 4-year growth ratio deducted by Square Root every 4 years.
Simple Math Derivation
Divide a 4 years interval into infinite number of tiny time interval, each with interest rate 1 + R(t) where R(t) tends to zero.
Note: 1 + R/2 => (1 + R) ^ (1/2) if R => 0
First 4-year growth ratio
= (1 + R(t1)) x (1 + R(t2)) x ... x (1 + R( tn ))
= ^ 2
= ^ 2
= ((1 + R(t(n+1))) x (1 + R(t(n+2))) x ... x (1 + R(t2n))) ^ 2
= (Next 4-year growth ratio) ^ 2
The graph above shows bitcoin log value growth decreased by half every 4 years.
Simple Math Derivation
Divide a 4 years interval into infinite number of tiny time interval, each with interest rate 1 + R(t) where R(t) tends to zero.
Note: 1 + R/2 => (1 + R) ^ (1/2) if R => 0
First 4-year growth ratio
= (1 + R(t1)) x (1 + R(t2)) x ... x (1 + R( tn ))
= ^ 2
= ^ 2
= ((1 + R(t(n+1))) x (1 + R(t(n+2))) x ... x (1 + R(t2n))) ^ 2
= (Next 4-year growth ratio) ^ 2
The graph above shows bitcoin log value growth decreased by half every 4 years.