Future of cryptocurrencies

In 2008, Satoshi Nakamoto had created a new currency called Bitcoin. A decade later, that currency grew exponentially. First breaking the $1,000 mark then continuing to the $5,000 and $10,000 mark only to finally crash at around $20,000.

So why did it crash?

Many people seem to link some real-life event to the fall and rise of prices, at least when looking at the Crypto Markets. However, most of these “reasons” are false. When the market crash, news sites try and find a reason behind the crash for a more interesting story. Along with that, it is beneficial to those that control the Bitcoin supply to have people think that these fluctuations are caused by anti-market events in the world, not by Bitcoin itself.

Bitcoin did not crash because of regulations or any other reason that the media tries to sell to you. Bitcoin crashed because it was set up to crash.

Four years after it’s creation, on November 19, 2013, Bitcoin crashed from $979 all the way down to $300 overnight and continued a slow downtrend for two years. On November 2015 it started it’s uptrend again. Another two years later on December 11, 2017, Bitcoin crashed again, almost the exact amount as it did four years ago, by 70% overnight.

The Bitcoin crash was not something new, it was a simple repeat of the market.

Bitcoin grows mostly by the purchase of coins by beginners and enthusiasts. We can call these people fools for now. They are the ones that had to suffer when the bubble burst while professionals left with their pockets full.

So it took 4 years from 2008 to gather enough fools to create the first bubble and another 4 years to create the second bubble.

So what about the third bubble?

Supposing that the smart people behind these market manipulations are not content with how much they made last year and are looking to become the richest people on planet earth, it seems within the realm of possibility that the third wave of fools will be gathered throughout the next 4 years, as they have been previously, and Bitcoin will be able to achieve huge 1300% climbs once again.

This would possibly lead to a small economic recession, as following the pattern, the price of Bitcoin would skyrocket to almost 400k per coin. This sounds crazy but it would be still considered a small bubble by today’s standard as the total valuation would only be about 800B.

To contrast, the dot-com bubble was 9.6 trillion dollars big, trillion with a T.

So there is space for Bitcoin to skyrocket in the future, at least enough for a Bitcoin bubble 3.0 and maybe even a Bitcoin bubble 4.0 to occur.

Following the trend, the uptrend should happen again in around two years and climax in about four.

Bitcoin, as any market, is ultimately controlled by those that own a majority of the value in it. The average traders and enthusiast will never be able to make a significant dent in the market, he can try and figure out where the controlling party is trying to take the market and cash out. He is playing someone else’s game, not his own.