People who’ve been in crypto for a long time view the space as evolving in cycles, alternating between periods of high activity and “crypto winters.” There have been three cycles so far. The first peaked in 2011, the second in 2013, and the third in 2017. By Chris Dixon and Eddy Lazzarin on Andreessen Horowitz.
Source: https://a16z.com/2020/05/15/the-crypto-price-innovation-cycle/
These cycles appear chaotic but have an underlying order, roughly characterized as:
- The price of Bitcoin and other crypto assets goes up
- Leading to new interest and social media activity
- Leading to more people getting involved, contributing new ideas and code
- Leading to projects and startups getting created
- Leading to product launches that inspire more people, eventually culminating in the next cycle
The first crypto cycle peaked in 2011. Before this, even enthusiasts thought of Bitcoin as an interesting experiment that was unlikely to have practical value. Afterwards, entrepreneurs realized you could create businesses in crypto. This was when many of today’s largest exchanges, miners, and wallets were founded. Follow the link to the full article to learn more about history of cryptocurrencies. Excellent!
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