{"id":121664,"date":"2020-11-27T21:12:29","date_gmt":"2020-11-27T18:12:29","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/decred-co-founder-explains-rationale-behind-bitcoin-bull-and-bear-cycles\/"},"modified":"2020-11-27T21:12:29","modified_gmt":"2020-11-27T18:12:29","slug":"decred-co-founder-explains-rationale-behind-bitcoin-bull-and-bear-cycles","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/decred-co-founder-explains-rationale-behind-bitcoin-bull-and-bear-cycles\/","title":{"rendered":"# Decred co-founder explains rationale behind Bitcoin bull and bear cycles"},"content":{"rendered":"

“# Decred co-founder explains rationale behind Bitcoin bull and bear cycles <\/strong>”
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Since its launch app<\/a>roximately 12 years ago, Bitcoin (BTC) has seen a number of bull and bear cycles, each greater than the last. What drives these cycles, however? Decred co-founder Jake Yocom-Piatt claims that the answer lies within the human brain.\u00a0<\/p>\n

\u201cBitcoin\u2019s bull and bear cycles are functions of generic human psychology, attention spans, and its deterministic and diminishing issuance,\u201d Yocom-Piatt told Cointelegraph.<\/p>\n

Over the years, various parties have argued different cases for Bitcoin\u2019s cycles, including PlanB\u2019s stock-to-flow model, which projects future Bitcoin prices based on its programmed halving events every four years. <\/p>\n

Bitcoin is unlike any asset before it. Its programmed finite supply and ease of movement allow for borderless value storage. <\/p>\n

One might wonder though, whether Bitcoin\u2019s nature as a programmed asset dictates its price cycles on some level, especially since its mining reward cuts in half every four years, essentially putting fewer Bitcoin on the market each time a block is mined. Its ultimate 21 million supply cap may also factor into the equation.<\/p>\n

\u201cThe rate of supply of Bitcoin is constantly shrinking as a percentage of the total circulation, with the addition of a substantial supply shock every halvening,\u201d Yocom-Piatt explained. <\/p>\n

\u201cBull runs occur when demand begins to outstrip<\/a> supply, driving up the price, which gets the attention of myopic investors. After a certain amount of time, these myopic investors\u2019 attention span for a bull market fades, and we revert to a bear market. With each bull market, the overall awareness of Bitcoin grows, sowing the seeds for the next bull run.\u201d<\/p><\/blockquote>\n

Bitcoin recently flirted with\u00a0its 2017 all-time high\u00a0near $20,000, receiving its fair share of mainstream media<\/a> coverage in the process. <\/p>\n