Due to **group psychology**, newcomers arrive in waves. Bitcoin's current adoption trend is to increase in value on an exponential trend line with said waves.
The waves have a destabilizing effect on the Bitcoin exchange rate:
- speculators are unsure of the amplitude or wavelength of adoption
- amateurish punters let their excitement as well as subsequent fear overwhelm them.
Regardless, once the tide has pulled back and the weak hands have folded, the price is a few multiples higher than before the wave.
-- an excerpt from Speculative Attack (2014), its 2-minute version can be found here: https://2minutebitcoin.org/blog/bitcoin-speculative-attack-on-the-dollar-2014
2minutebitcoin
npub1p6…9ej3v
2023-05-11 22:16:11
Author Public Key
npub1p63d4vekvuql9zltpp4dezzfk2xxfgjsfqyglf4ju4syalekn4csn9ej3vPublished at
2023-05-11 22:16:11Event JSON
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"content": "Due to **group psychology**, newcomers arrive in waves. Bitcoin's current adoption trend is to increase in value on an exponential trend line with said waves.\n\nThe waves have a destabilizing effect on the Bitcoin exchange rate:\n- speculators are unsure of the amplitude or wavelength of adoption\n- amateurish punters let their excitement as well as subsequent fear overwhelm them.\n\nRegardless, once the tide has pulled back and the weak hands have folded, the price is a few multiples higher than before the wave.\n\n-- an excerpt from Speculative Attack (2014), its 2-minute version can be found here: https://2minutebitcoin.org/blog/bitcoin-speculative-attack-on-the-dollar-2014",
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}