Bitcoin Global News (BGN)
December 17, 2018 -- ADVFN Crypto NewsWire -- Over the weekend,
Coindesk published an article by Tim Enneking, who effectively runs
Digital Capital Management, on the subject of Bitcoin’s historical
price volatility. In it, Enneking includes an analysis of Bitcoin’s
historical all-time highs and lows, with which he posits that both
these movements have created an obvious trend over time.
Inside of this pattern, Enneking
claims that once Bitcoin reaches a bottom, it usually doubles in
four months. At the same time however, he suggests that Bitcoin is
nearly too violent to predict at all. What might be more reasonable
in this case would be to take a position in between these two
predictions. In other words, it appears that certain elements of
Bitcoin’s price movements can be forecasted, but doing so in
connection with an exact value that Bitcoin will reach in a certain
amount of time is inadvisable.
In the end, the key conclusion of
Enneking’s article that rings true for all of us in the blockchain
space goes beyond price movement. In short, there is definitively
not enough evidence to suggest with any degree of certainty that
Bitcoin could fail.
Why this can be said relates
directly to something that everyone who is currently in the space
knows to an extent.
The true value of any
cryptocurrency, including Bitcoin, goes beyond price to network
effects. The more users that such a network has, the more valuable
it becomes. For a contemporary analogy on this outside of the
blockchain industry, think about how Ebay retains value as a
company. Just like a Blockchain network, it depends on the right
level of users.
In Ebay’s case, this means buyers
and sellers, while in the case of a Cryptocurrency network, these
groups could be thought of as miners or stakers and
users.
With this in mind, we can all rest
assured that as long as more users continue to join the space over
time, cryptocurrencies will persist well past 2019.
By: BGN Editorial Staff