The Real Cause of The Cryptocurrency Market Boom & Bust (2016-2018)
Let's take a look at the chart above, in which you can view here as well. Take note of the following pivotal moments in market capitalization:-
- The rise of cryptocurrencies from May 2016 onwards.
- The decline of cryptocurrencies from January 2018 onwards until present day.
So what caused the entire market to shift from almost zero to ~$800 billion within the span of 18 months, before busting its balls all the way through 2018? An easy guess is that the crypto cabal so happened to start their pump back then and decided to take profit before hitting the $1 trillion mark. But what's the cause that caused them to do so in the first place? There must be some root cause.
Curious, I spent the past week conducting an extensive research online and was surprised to find out that it's very close to home. It was actually all me. I started blogging on Steem back in May 2016. January 2018 was when I began to almost abandon writing after I discovered Tau and subsequently, Steem's misaligned economic incentives.
It was me all along..
Pretty much nailed it, right? Case closed! The simplest explanation is usually the most accurate. Sorry for slacking off and causing the market slump. I didn't know!
Boom time again?
By the way, I've registered a domain at https://etherpunk.net and might try out @wise-team's Engrave, although the 15% author's cut is a turn off honestly. It's not like it's compensated by an increase in curation rewards. But ultimately, I have not decided what to do with it. I've written so many drafts over the past year and I should look for a PA or manager to help build my blog and following for real, maybe?
If you want to receive notifications on my stuff, please subscribe to my email listing at The Oasis. I promise there'll be negative spam! Thanks for your time.
Music source: Euføeni
GIF source: https://gph.is/1a90gVD
Kevin, I was wondering where you were... and now I know who to blame too !! haha
I've been buying into this mess. Should we believe in the 2nd coming... or maybe just a little foothold? peace
Lol not sure about the 2nd coming, but i've already made peace with my selection months ago..
Actually very funny.
On the web builder front it could be worth employing someome to manage it all....
SEO depends on quite a lot of mundane background work like tagging and image compression (affects page loading speed hence SEO).
For every post I write on WP I probably spend 25% of the time on this.
I sort of enjoy the mundanity of it however, but paying someone else to would be a good option.
And there was me thinking the crash was just down to a mash of several variables that no one's able to isolate effectively because of lack of reliable data.
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I see.. my only SEO is the title, although I don't really focus on it. I just try to include some numbers and mainstream keyword with some offwords every now and then lol. Definitely gonna get someone to help.
What do you think is the biggest factor in the slump? I'm actually following up on this post with the real real reason haha..
Defo get some help - your main title has nothing to do with SEO - it's all in the slug. And you want an image named with related key words. Not to mention using google trends for the best key word combos... e.g. 'men' might be much better then 'male'.
The crash... I'm sure there are many variables... fairly sure this BTH 'fued' isn't helping matters. I'm not a crypto expert so I'll look forward to yr next post.
Must add myself to yr mailing list too!
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Boom! Done, I have always liked your writing so subscribed on the promise of negative spam :0D
Thank you! No boom is complete without meesterboom :D
Hehe, indeed, that's what I always say!!
I was looking for the answer at the bottom... LOL.
STEEM is rising again, but not before I grabbed some more while it was low. I think several others have too. You have to believe.
Let me know if you need some free accounts to sign up your contacts quickly, just send in the emails anytime.
I have several myself. Hope I can find a use for them in the future.
nice! i should have some spare too if you/your friends could use the access.
I feel so ignorant, what tool are you using?
steemworld.org... look at the bottom. Account Creator.
Oh of course! Thanks!
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I don't get this whole account claiming business at all. Is there a post somewhere that can explain it to me?
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I think @steevc did one recently. I'd look but need to go to work... like now!
Oh shit sorry to hear that. Hopefully the steem price will pick enough in 2019 for you to quit once and for all!
Unless you like yr job? I've heard that's a thing with some people!
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LOL! I felt the same way when Trump started tweeting about the topics that i had posted on Steem about!
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Finally! A proper explanation!
Please start posting more asap for a sudden pump to the moon 😂
Engrave is nice, I just made a first trial post with them. In comparison with the 25% that dtube used to take, 15% is nothing. I hope they’ll be able to get someone to curate and support the onboarding :)
They still do?
I rather sustainable growth than sudden pump.. i wonder if we'll see something greater than last year again. Yea engrave is quite a neat app :) i hope they can reduce it to like 5% by subsidizing through vote-trailing or something similar.
I’ll take it :)
Lol so it was you who caused this downturn ... but I guess you have given us an opportunity to buy now before it goes back up. Btw nice meeting you at sf! Next time you have to come and visit Sydney
Haha.. Sydney. I guess have to go check out the opera house at some point eh?
Lol totally considering you have been to Melbourne, Sydney has to be your next stop 😂
This is incredible empirical evidence.
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LOL
Haha
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Thanks for this, it does seem there is room left to fall. Historically, this crash is really not that bad.
this one is from May/June this year but electricity, hw, labor costs didn't move so much in the mean time. Yes of course, price = demand/supply and value = knowledge but there is also: cost = scarcity = value. All this forms quite an objective circuit :) ... sooo ... China >80% of the hash, and probably as much as the stash and the cash. Of crypto. This shows the bottom around $3500-4000 currently. Yes it is possible to burrow under it for a while but it is exactly like in gold mining the price gravitates around the averaged over the market cost of production. MR = MC. I'll write soon some on these. ...
This is brilliant, thanks. I actually included this same exact infographic in a white paper for a mining startup earlier this year. It's interesting stuff to take into consideration, really important for the community. I will follow you for sure.
Crypto has always been this, huge volatility up and down, one couldn't exist without the other.
I wouldn't be surprised to see bitcoin at 3k eventually and after that slow, slow climb until it catches attention of the masses again and it'll make new highs, but I'd say there's only one such cycle left as the tech finally hits mainstream usage and people know the tech is here to stay just like internet.
Unless the turkey's turn is up when thanksgiving is tomorrow..
eventual death spiral scenario is the price going so low that to initiate avalanche of mining rigs switch offs and abandoning ... don't think that is really possible. BTC is not a price game. It is a true novel tech for scaling transactions. A lot of scaling. Average 300 TIMES lower txs cost than traditional fiat requiring soooo costly reproduction, upbringing, education, qualification and life and activity support, infrastructure for millions and millions of people. Of course machinery and electricity are cheap and cheaper to reproduce. Cf.: Moore's law and Koomey's law.
Brilliant! I think I did something similar once or twice...
Here's an article for you! https://steemit.com/bitcoin/@creativecrypto/benjaminfranklinwouldhavelovedbitcoincoloniescryptographyandtheadventofnewmoney-wlf8ae5u51