A financial bubble means that for an asset like Bitcoin the use as a store of value grows exponentially. The rules of math determine that this can‘t happen sustainable and that it reaches with a pace, that must seem surprisingly for human minds, the point where it is „too high.“ From here the use as a store of value decreases constrainingly. The bullmarket has become a bearmarket. To get out of it, to enspark another turn toward raising prices, there needs to be a growth in the use of the function which underlies the asset. For Bitcoin this is the p2p e-cash system.

Many technologists fail to understand this interrelation, because they ignore the ecosystem, which carries the growth of the use, or are only able to regard it as the source of an extrinsic effect on the technology, which has to be assessed by and for itself. Seen from a technical point of view, a growing use of Bitcoin causes negative effects. It makes it harder to predict the behavior of the p2p network and to guarant...