It’s the combination of strong network effects and artificial scarcity driving the price action. You buy Bitcoin cause something about it really resonated with you. Price goes up and you feel validated. You go and naturally — out of benevolent intentions — tell your closes people so they don’t miss out.
The mistake of cryptocurrency is discounting the potential for price manipulation. Earl adopters understood cornered these markets immediately. Now we are in never ending cycles of hype, markup, dump, accumulate, hype, markup, distribute, and accumulate over years. These cycles are continuously producing winners and losers and the losers are generally those who have more to lose and are thus enable to withstand the intense pressure of bear markets.
I love Bitcoin and Ethereum and all the potential freedom that they represent. At the same time - enough. These markets need regulation. We need to know who owns these coins. We need to see their selling patterns so we can see their manipulation.
Unfortunately, the cynic in me knows that too many people are making too much money and are probably going to block regulation for a very long time.
> These cycles are continuously producing winners and losers and the losers are generally those who have more to lose and are thus enable to withstand the intense pressure of bear markets.
This is the opposite of what I think is true so I'd love to see a citation for this claim.
There is no citation but isn’t it obvious what is happening in this unregulated market? What do you think is happening when the price of Bitcoin is driven down 70% plus every so often? Then what do you think happens as it goes sideways for so long?
Maybe I’ve just seen this cycle a few times and this is my cynical take. But I think it just makes sense.
The mistake of cryptocurrency is discounting the potential for price manipulation. Earl adopters understood cornered these markets immediately. Now we are in never ending cycles of hype, markup, dump, accumulate, hype, markup, distribute, and accumulate over years. These cycles are continuously producing winners and losers and the losers are generally those who have more to lose and are thus enable to withstand the intense pressure of bear markets.
I love Bitcoin and Ethereum and all the potential freedom that they represent. At the same time - enough. These markets need regulation. We need to know who owns these coins. We need to see their selling patterns so we can see their manipulation.
Unfortunately, the cynic in me knows that too many people are making too much money and are probably going to block regulation for a very long time.