Bitcoin (BTC) was launched almost 12 years ago and is known for its often unstable market cycles. While some believe that Bitcoin’s status as a store of value keeps these cycles somewhat consistent, Rob Viglione, co-founder and CEO of Horizen, disagrees.

“The only constant in the bitcoin and cryptocurrency markets is a significant degree of uncertainty,” Figlioni told Cointelegraph. “We see in real time the birth of an industry, the birth of a new monetary system, the birth of a new colleague-to-colleague economy; Creating a new world is a mess. ”

Bitcoin is decentralized, unlimited and not tied to the government. The owners can quickly send and receive it, as well as under a pseudonym. It also announces a supply limit that is publicly stated. Based on the code, the coin automatically reduces the amount of new bitcoins entering the ecosystem every four years until it reaches full circulation.

The PlanB analyst has built a stock-to-power model that predicts future bitcoin prices based on these halving events. This mindset allows for a potential level of consistency in Bitcoin’s market cycles, at least logically. According to Fellioni, however, the human component of the equation controls fate, which creates uncertainty.

“Of course, the path to bitcoin money has been defined since the beginning – everyone knows with a high degree of certainty exactly how much bitcoin is worth today and how much it will be tomorrow, but demand is quite uncertain and fluctuates a lot,” he suggested. “The uncertainty will naturally subside with massive adoption and real benefits, but being a part of this industry in the beginning is absolutely exciting.”

Kosala Hemachandra, CEO and founder of MyEtherWallet, also sees no stability in Bitcoin’s market cycle. “We humans tend to see special patterns in the trading world,” he said, describing the tendency to imperfection.

However, it is always reasonable to assume that prices will rise, especially if the offer price falls. This is simply because the demand for this asset remains unchanged and the supply of assets is halved. ”
Hemachandra explained that ox cycles for Bitcoin as well as other assets can also occur as a result of other driving forces, such as technological advances or popularity.

Speaking of popularity, Bitcoin has made headlines in recent days as it recently traded within walking distance of its full-time high.

Source: CoinTelegraph