What Phase Of Bitcoin Are We Now
Business cycles are a well-understood concept commonly linked with technological innovations, which often trigger a phase of investment and new opportunities in terms of market and employment. The outcome is an economic expansion, and as the technology matures and markets become saturated, expansion slows down. A phase of recession is then a likely possibility as a correction is required to clear the excess investment or capacity that irremediably occurs in the later stages of an economic cycle. The bottom line is that recessions are a normal condition to a market economy as they are regulating any excess, bankrupting the weakest players, or those with the highest leverage. However, one of the mandates of central banking is to fight a process (business cycles) that occurs “naturally”. The interference of central banks such as the Federal Reserve appears to be exaggerating the amplitude of bubbles and the manias that fuel them. It could be argued that business cycles are being replaced ...