The Great Purge

Too Long; Didn't Read

<span>2018</span> may look like a really bad year for Bitcoin to the layman’s eye. The price has plunged from a high of around 19000 USD last December to around 5000 USD here in November this year. What’s going on? First of all, it is important to remember that there’s nothing new about the price of Bitcoin behaving in this way. Bitcoin’s path to mass adoption is through hype cycles that occur, on average, every two years or so. If we zoom in on the price chart we can see a pattern repeating itself over and over again. The price increases tenfold rapidly and then loses about three thirds of that increase the following year. This two steps forward one step back pattern rewards patience and patience is not a very common personality trait among those who got into cryptocurrencies to get rich quickly.