Understanding Mega Cycle in Crypto

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Bittime - The crypto world, although classified as a new digital asset, has shown an interesting pattern of price movements. One of the patterns being discussed at the moment is the Mega Cycle, which is a long-term cycle of price increases that has the potential to break ordinary up-and-down trends. This article will review the meaning of Mega Cycle, its characteristics, and conclusions about its impact on the crypto world.

What is Mega Cycle?

The Mega Cycle concept is inspired by technological cycles that have occurred for decades. Previously, the technology industry experienced a boom (rapid growth) and busting (drastic decline) phase in an 8-10 year cycle. This happened in the era of semiconductors (1960-1970), microcomputers (1980), and the internet (1990). Each of these waves of innovation triggered an investment boom, and only a handful of big players survived after the downturn phase.

Since the 2000s, however, that pattern seems to be changing. Instead of repeating cycles, the tech world experienced a long boom for about 20 years, not even affected by the global financial crisis of 2007-2009.

One potential explanation for this phenomenon is overlapping waves of technology. That is, instead of a single cycle every 8-10 years, several waves of innovation are now happening simultaneously. This has an impact on:

• Overall scale-up: The combination of multiple innovation waves results in a more significant impact than a single cycle.
• Lack of sharp declines: Overlapping waves of innovation can "smooth" price declines that were common in previous cycles.

Vivid examples of overlapping waves of these technologies are:

• Cloud computing (2005-present)
• Social networking (2005–present)
• Mobile (2005–present)
• SaaS (2005-present)
• Vertical SaaS (2010-present)
• Fintech (2010-present)
• AI (2015-present)
• Crypto (2009-present)

Referring to the example, the world is currently potentially in a Mega Cycle (or "poly-cycle"?) phase that could last for the next few years. Supporting factors include:

• Abundant capital availability
• The implementation of "quantitative easing" by central banks
• Technology adoption in various sectors is increasingly massive

Also Read How to Buy Crypto:

Features of Mega Cycle in Crypto

One of the main characteristics of Mega Cycle is the lack of significant price reductions. Unlike previous cycles marked by sharp recessions, overlapping waves of innovation actually make the upward trend of crypto tend to be sustainable.

Namun, perlu dicatat bahwa Mega Cycle memiliki dampak positif dan negatif yang akan dibahas dalam artikel selanjutnya.

Contoh Kondisi Mega Cycle dalam Kripto

Berikut adalah beberapa contoh kondisi Mega Cycle dalam kripto, dengan menyebutkan beberapa aset kripto sebagaimana teks sumber aslinya:

1. Gelombang DeFi (2020-sekarang):

• Uniswap
• Aave
• Maker

2. Gelombang NFT (2021-sekarang):

• Bored Ape Yacht Club
• CryptoPunks
• NBA Top Shot

3. DAO Wave (2021-present):

• Uniswap DAO
• Aave DAO
• MakerDAO

4. Layer 1 Waves (2021-present):

• Solana
• Near
• Celo
• Minna

5. Crypto with Fiat Integration:

• Coinbase
• PayPal
• Visa

6. Crypto Adoption by Institutions:

• MicroStrategy
• Tesla
• Grayscale Investments

7. Diversity of Crypto Usage:

• GameFi
• Metaverse
• Decentralized Finance (DeFi)

8. Other Crypto Assets That Start Mega Cycle Conditions:

• Bitcoin (BTC)
• Ethereum (ETH)
• Cardano (ADA)
• Polkadot (DOT)

It should be noted that this list is not exhaustive and there are many other crypto assets that show growth potential in the Mega Cycle.

Conclusion

The Mega Cycle concept offers a new perspective in understanding crypto price movements. While there is no definitive confirmation yet, overlapping waves of innovation and external factors such as monetary policy could potentially push cryptocurrencies into a long-term bullish phase.

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How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappebti.

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum asset purchase at Bittime is Rp10,000. After that, then you can make a crypto asset purchase in the application. Learn the Complete Guide on How to Buy Crypto on Bittime.

Monitor the price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also Read:

What Is Super Megacycle &; Its Impact On Crypto &; Bitcoin

What Is Megacycle Indicator: Technical Analysis Tool to Understand Crypto Market Trend Direction

What Are Megahashes Per Second, and How Are They Calculated?

DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.