21.50
Unknown
No, they are not "denial," "anger," and "acceptance." They are "Distribution," "Application," and "Transaction." The three stages overlap, but each one dominates over a given period of time. The beginning of a stage's period of domination is in line with a change of Bitcoin creation rate.
Given the rapid drop in Bitcoin's value over the last 24 hours, my hope is to put things in perspective.
Stage 1: Distribution
- Spans from 2009 until 2017;
- Dominates from 2009 until 2013, at which point the creation rate halves;
- Represents the period of time of most rapid Bitcoin creation;
- Includes the first two creation rates (50 and 25 Bitcoins per block);
- Responsible for the creation of 78.125% of all Bitcoins (16,406,250);
- Inflationary during its period of dominance (until 2013);
- Bitcoins are created, sold, and re-sold, as value fluctuates wildly, with each cycle increasing the number of Bitcoin holders.
Stage 2: Application
- Spans from 2012 until 2025;
- Dominates from 2013 until 2021;
- Represents the period of time of most rapid Bitcoin application development;
- Includes part of the first creation rate and all of the next three;
- Covers the development of applications that provide services which are unambiguously cheaper and more efficient than similar services relying on other technologies;
- Quickly transitions from inflationary to deflationary during its period of dominance as Bitcoin applications gain marketshare.
Stage 3: Transaction
- Spans and dominates from 2021 onward;
- Represents the period of time where nearly all important applications have already been developed;
- Includes all rates of Bitcoin creation beyond the first three;
- 90% of Bitcoins are in circulation at the beginning of this stage;
- Bitcoins are exchanged for increasingly valuable goods and services;
- Bitcoins are rarely exchanged for fiat currencies;
- Pure exchanges that have not diversified their services no longer exist;
- Money transfer service providers that deal in fiat currencies no longer exist.
Given the rapid drop in Bitcoin's value over the last 24 hours, my hope is to put things in perspective.
Stage 1: Distribution
- Spans from 2009 until 2017;
- Dominates from 2009 until 2013, at which point the creation rate halves;
- Represents the period of time of most rapid Bitcoin creation;
- Includes the first two creation rates (50 and 25 Bitcoins per block);
- Responsible for the creation of 78.125% of all Bitcoins (16,406,250);
- Inflationary during its period of dominance (until 2013);
- Bitcoins are created, sold, and re-sold, as value fluctuates wildly, with each cycle increasing the number of Bitcoin holders.
Stage 2: Application
- Spans from 2012 until 2025;
- Dominates from 2013 until 2021;
- Represents the period of time of most rapid Bitcoin application development;
- Includes part of the first creation rate and all of the next three;
- Covers the development of applications that provide services which are unambiguously cheaper and more efficient than similar services relying on other technologies;
- Quickly transitions from inflationary to deflationary during its period of dominance as Bitcoin applications gain marketshare.
Stage 3: Transaction
- Spans and dominates from 2021 onward;
- Represents the period of time where nearly all important applications have already been developed;
- Includes all rates of Bitcoin creation beyond the first three;
- 90% of Bitcoins are in circulation at the beginning of this stage;
- Bitcoins are exchanged for increasingly valuable goods and services;
- Bitcoins are rarely exchanged for fiat currencies;
- Pure exchanges that have not diversified their services no longer exist;
- Money transfer service providers that deal in fiat currencies no longer exist.
