In a newly issued analysis, VC firm Andreessen Horowitz has identified clear trends in the history of cryptocurrency, finding order in what often feels like a chaotic industry.
Bitcoin’s Price-Interest-Innovation Cycle
The firm’s latest insights identify three basic cycles throughout cryptocurrency’s path since Bitcoin’s inception. The first cycle peaked in 2001, the second in 2013, and the third in 2017. Each cycle has been characterized by a rise in price, followed by a renewed interest in digital assets, new ideas for use cases and implementations, and funding and startups as more people enter the space. Interestingly, in all cycles, the firm discovered that interest failed to wane even after prices had spiked. During the first cycle from 2009 to 2012, the firm noted that after Bitcoin began rising in price, a number of innovations entered the space. Read More