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