Bitcoin's current trend is to increase in value on an exponential trend line as new users arrive in waves. The good money is "slowly" driving out the bad. Two factors drive this:
1. **Reduction in information asymmetry** – people are Bitcoin Education|learning about Bitcoin and coming to the realization that bitcoins are indeed the best money.
2. **Increasing liquidity** – buying bitcoins is more convenient and has fewer fees attached today than many years ago.
Due to **group psychology**, these newcomers arrive in 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.
This 'slow' bleed is **the Bitcoin adoption**, and commentators generally assume one of the following:
1. Slow bleed never occurred, it's a fiction based on misleading data
2. Slow bleed has stopped, the above motives only affect deluded bitcoin proponents
3. The process will taper off now, as all the super tech-savvy people are already getting on board
This slow bleed has shown no signs of stopping and in fact, has only been accelerating as the market cap increases. The second step will be speculative attacks that use bitcoins as a platform. The third and final step will be hyperbitcoinization.
-- 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
2023-05-07 15:28:41
Author Public Key
npub1p63d4vekvuql9zltpp4dezzfk2xxfgjsfqyglf4ju4syalekn4csn9ej3vPublished at
2023-05-07 15:28:41Event JSON
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"content": "Bitcoin's current trend is to increase in value on an exponential trend line as new users arrive in waves. The good money is \"slowly\" driving out the bad. Two factors drive this:\n\n1. **Reduction in information asymmetry** – people are Bitcoin Education|learning about Bitcoin and coming to the realization that bitcoins are indeed the best money.\n2. **Increasing liquidity** – buying bitcoins is more convenient and has fewer fees attached today than many years ago.\n\nDue to **group psychology**, these newcomers arrive in waves.\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\nThis 'slow' bleed is **the Bitcoin adoption**, and commentators generally assume one of the following:\n1. Slow bleed never occurred, it's a fiction based on misleading data \n2. Slow bleed has stopped, the above motives only affect deluded bitcoin proponents \n3. The process will taper off now, as all the super tech-savvy people are already getting on board\n\nThis slow bleed has shown no signs of stopping and in fact, has only been accelerating as the market cap increases. The second step will be speculative attacks that use bitcoins as a platform. The third and final step will be hyperbitcoinization.\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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}