To many onlookers, the crypto market is unpredictable as the weather. No one expected the jaw-dropping Bitcoin price rally in late-2017, nor what played out afterward. Yet, a recent quip from a leading cryptocurrency investor claims there may be an underlying rhythm to this industry \u2014 a multi-year heartbeat, if you will, that is slow but consistent.\u00a0As the old adage goes, “history doesn’t repeat itself, but it does rhyme.”<\/p>\n
After a painstaking 12 months, 2019 has finally arrived. In terms of valuations, 2018 was a dismal year for cryptocurrencies en-masse, as the aggregate value of all digital assets fell by ~87%. However, many optimistic industry\u00a0enthusiasts have applied the clich\u00e9 \u2014 “new year, new me” \u2014 to crypto. And while much of this is unbridled hope from dreamers, infused with copious amounts of so-called “hopium,” maybe this optimism isn’t all too zany after all.<\/p>\n
Chris Burniske, a partner at Placeholder Ventures, an investment group working to “decentralize data, wealth, and power,” recently took to Twitter to drop a\u00a0mind-boggling message<\/a>. Burniske, who wrote a primer on crypto, fittingly named Cryptoassets, noted that this industry may be moving in four-year cycles, oscillating between crashes and frenzies.<\/p>\n Crypto Markets & Development<\/p>\n 2013: Frenzy & Over-Promise 2017: Frenzy & Over-Promise 2021: Frenzy…<\/p>\n — Chris Burniske (@cburniske) January 13, 2019<\/a><\/p><\/blockquote>\n\n
2014: Crash & Under-Deliver
2015: Consolidate & Ship
2016: Lift & Refine for Adoption <\/p>\n
2018: Crash & Under-Deliver
2019: Consolidate & Ship
2020: Lift & Refine for Adoption <\/p>\n