The cryptocurrency rally will slow down, simple maths says
The current rate of market expansion is not sustainable
The capitalisation of the cryptocurrency market has experienced a faster-than-exponential growth for — at least — the past two years (see our paper and this nice piece on it). And exponential growth is already very fast. It means that the growth rate of the value of a mathematical function is proportional to the function’s current value. The bigger you are the faster you grow, so that you become bigger more rapidly and further speed up your growth.. and so on.
Thus, while the debate on the fate of cryptocurrencies becomes noisier and noisier (China, CEOs, Switzerland, etc), Fabiano Ribeiro, Laura Alessandretti (Postdoc and PhD student here at City uni of London) and I (Andrea Baronchelli) made the simplest exercise. We identified the mathematical model that better describes past growth by fitting the available data and used that model to extrapolate what would happen in the future if nothing changed. We obtained the figure below.
At the current pace, the market value would exceed the GDP of the World (or GWP) in a year or so, hitting other milestones well before that. So, while it is difficult to say what will trigger the change, we know for sure that the behaviour we have observed for the past two or three years will not last long. The question is not if the market growth will slow down but what is going to happen next.
Technical PS: There is some intrinsic uncertainty on the time at which it is best to start the fitting procedure and on the parameters obtained. We did a few other tests obtaining similar results.
You are right, cryptos will not go 10 folds each year, but will only double or quadruple yearly going forward. What a slump! :-D
Gross world product in 2017 is projected at $77.99 trillion, its GDP (PPP) is forecasted at $126.69 trillion. Global economy is 1.62 times greater in PPP terms compare to nominal terms. Out of 191 economies, 181 have higher value in PPP basis and 9 have higher in nominal.Apr 23, 2017
Basically what I'm saying is Wtf You talking about ?
Btc isn't even at 100 Billion $$
One more thing is obvious Btc doesn't follow any rules .. so bashing will get you nowhere
Congratulations @dausama! You received a personal award!
Click here to view your Board
Congratulations @dausama! You received a personal award!
You can view your badges on your Steem Board and compare to others on the Steem Ranking
Vote for @Steemitboard as a witness to get one more award and increased upvotes!