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The Power to Mint Money

Bankless

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Cyclical Dynamics of Cryptocurrency Markets

This chapter explores the cyclical nature of cryptocurrency bull markets, analyzing how the minting of new assets influences market behavior. It delves into historical patterns of market booms followed by opportunistic overproduction and subsequent collapses, drawing parallels with macroeconomic theories. Additionally, it highlights the evolution of cryptocurrencies, focusing on key players like Bitcoin and Litecoin, while examining the psychological aspects of market speculation and the rise of new coins during the ICO boom.

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