The continuous influx of new buyers into the Bitcoin market, driven by an awareness of its scarcity, contributes to a persistent upward price trajectory that is unique among cryptocurrencies.

This trend is further fueled by the phenomenon of 'Fear of Missing Out' (FOMO), which compels investors to enter the market, anticipating that Bitcoin's limited supply will support future price increases.

Ultimately, the provable scarcity of Bitcoin is a critical factor influencing its adoption and price behavior, emphasizing that its impact cannot be overlooked.

Unlike gold, Bitcoin's supply is fixed and cannot be increased by miners, ensuring that as demand grows, it will outstrip supply.

To better understand Bitcoin's price behavior over time, a European researcher developed a power law model, suggesting that it can describe various natural phenomena.

This model represents Bitcoin's price as a function of time with the equation Price = A(t - t_0)^n, where A is a scaling factor and n is an exponent.

By applying logarithmic analysis, the relationship between Bitcoin's price and time reveals a clear linear trend when examining data from 2011.

Market shocks, such as the FTX collapse and regulatory crackdowns, may create temporary deviations in price trends, yet they do not undermine the overarching principle of increasing Bitcoin adoption.

Despite the potential for widespread adoption to eventually stabilize Bitcoin's price, its future volatility remains uncertain at this stage.

While some analysts argue that scarcity is not a significant factor in Bitcoin's value, it is contended that scarcity plays an essential role in its market dynamics.