When Bubbles Pop: An Infographic

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When the bubble pops, individuals don’t understand it at first. When the bubble pops, it’s at all times simply one other unstable day. “It’s only a correction. A highway bump on the best way up. Purchase the dip! It’ll bounce again, simply you wait.”

Till it doesn’t and it turns into painfully obvious that the bull run is over and it’s a protracted — a really lengthy — manner down. And never only for the purple candle addled value, however for the community, its transaction counts, and normal curiosity as nicely.

Nobody likes the bear. However right here’s some solace: It acts fairly predictably. Community information and exercise comply with the worth, issues backside out, the ecosystem re-achieves an equilibrium after which it makes one other run — rinse and repeat. It’s happened several times before.

Right here’s an infographic we made for instance what the numbers appeared like when three huge bitcoin bubbles popped.


This article initially appeared on Bitcoin Magazine.

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