Given the following line of maths:
$$(1-x)(1+x)(1+x^2)(1+x^3)...(1+x^{2^n})$$
we can simplify it:
$$(1-x^2)(1+x^2)...(1+x^{2^n})$$
and so on to obtain:
$$(1-x)(1+x)(1+x^2)(1+x^3)...(1+x^{2^n}) = (1-x^{2^n})(1+x^{2^n})=(1-x^{2^n2})=(1-x^{2^{n+1}})$$
Therefore we can say that:
$$\frac{1-x^{2^{n+1}}}{1-x}=\prod_{i=0}^{n}(1+x^{2^i})$$
My question is how to show that:
$$\ln{\left( \frac{1}{1-x}\right)} = \sum_{i=0}^{\infty}\ln{(1+x^{2^i}})$$
I do not follow where we "lose" the: $\frac{-x^{2^{n+1}}}{1-x}$ part, and how we suddendly get the infinite series, instead of up to $n$.
The above expression follows from the identity:
$$\frac{1-x^{2^{n+1}}}{1-x}=\prod_{i=0}^{n}(1+x^{2^i})$$
Only when $|x|<1$ or in other words, $-1<x<1$.
So assuming that this condition holds, from the identity you have already proved, we have that
$$\frac{1-x^{2^{n+1}}}{1-x}=\prod_{i=0}^{n}(1+x^{2^i})$$
As $n\to \infty$, $2^{n+1} \to \infty$ and hence $x^{2^{n+1}} \to 0$. Thus we get,
$$\frac{1}{1-x}=\prod_{i=0}^{\infty}(1+x^{2^i})$$
And then taking logarithm on both sides, we get
$$\ln{\left( \frac{1}{1-x}\right)} = \sum_{i=0}^{\infty}\ln{(1+x^{2^i}})$$
Hope this helps.