Decred co-founder explains rationale behind Bitcoin bull and bear cycles
Since its launch approximately 12 years ago, Bitcoin (BTC) has seen a number of bull and bear cycles, each greater than the last. “Bitcoin’s bull and bear cycles are functions of generic human psychology, attention spans, and its deterministic and diminishing issuance,” Yocom-Piatt told Cointelegraph.
Over the years, various parties have argued different cases for Bitcoin’s cycles, including PlanB’s stock-to-flow model, which projects future Bitcoin prices based on its programmed halving events every four years. One might wonder though, whether Bitcoin’s 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.
