I expect many people are looking at bitcoins parabolic rise of the last few months and wondering how it will all pan out. How high will it peak? Will it fall after it peaks? Is it a bubble about to burst? Will it just begin to flatten out?
I recently spent some time looking at other historical bull runs, mainly in precious metals from 1980, to try and see what might be coming. To me this comparison with precious metals is valid, as there are many similarities between gold, silver and bitcoins. Both are constrained in quantity and can be viewed as commodity, both are regarded or have been regarded as money because they share the required characteristics of money, eg fungible, divisible, transportable, non-counterfeitable etc. So anyway hopefully you accept my point.
First heres what the last bitcoin bubble looked like in 2011
Note how the price increased getting…
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