What Bitcoin Bubbles Hide.! The adoption of Bitcoin, like t…

What Bitcoin Bubbles Hide.!
The adoption of Bitcoin, like the waves of a pandemic like COVID-19, has spread in distinct cycles, each marked by an increase in interest, speculation, and learning. This article explores how this adoption process resembles the waves of contagion of a pandemic, where each wave brings new lessons and adaptations.
The Patient Zero
Just like with COVID-19, where the "patient zero" initiates the chain of contagion, Satoshi Nakamoto can be seen as the origin of Bitcoin. In 2008, with the publication of the White Paper and the release of the code, Satoshi started a financial revolution without much explanation, as Charles Ryan describes: "Craig invents Bitcoin, doesn't explain anything to anybody, he just puts the code out there and five years later he does an interview and says Bitcoin is Turing complete..." This first wave was of the innovators, the first to understand the potential of Bitcoin as a decentralized payment system and a shallow "store of value".

The Waves of Learning
Every four years, coinciding with Bitcoin's halving event, a new wave of adoption and speculation is observed. These waves not only drive the price up, creating "bubbles," but also bring with them a new group of learners. This learning cycle generates enthusiasm and eventually disappointment when the group discovers the limitations or complexities of Bitcoin's current application layer.
First Layer: Internet Money and Store of Value - Early adopters saw Bitcoin as an alternative to fiat money, which led to the first significant speculative bubble around 2013.
Second Layer: Electronic Cash - With the fork of Bitcoin Cash (BCH), the idea of Bitcoin as an everyday payment method was proposed, although this did not capture the imagination of the masses as expected.
Third Layer: Smart Contracts and Turing Completeness - Ethereum captured this layer, but Bitcoin, especially BSV, has argued it is Turing complete, opening the door to smart contracts and more complex applications.
Fourth Layer: Legal Assurance and Governmental Application - The recognition of Bitcoin by institutions and governments as a legitimate asset or economic policy tool.
Fifth Layer: Metanet and the Evolution of the Internet - BSV positions itself as a pioneer in this layer, proposing that Bitcoin is not just electronic cash but a protocol that can re define how the internet works with the individual property of data.
Each layer generates its own "bubble" of speculation and learning, which deflates when the group discovers the limitations or the need to understand the next layer. This cycle repeats approximately every four years, aligning with Bitcoin's halving, which reduces the supply of new bitcoins and, therefore, typically increases interest and price.

Innovation Adoption Curve:
The adoption of Bitcoin, like any other technological innovation, follows a well-defined pattern of diffusion among different segments of the population. This process can be better understood through the theory of innovation adoption, which divides society into five main groups:

Innovators (2.5% of the population): These are the first to adopt Bitcoin. This group consists of individuals with a high degree of curiosity and risk tolerance. They see Bitcoin's revolutionary potential from the outset, even when the technology is in its most immature stages. Innovators are those, like Satoshi Nakamoto, who release the code into the world without much context, trusting that others will grasp the vision. Innovators have been those who mined the first bitcoins, developed the first applications, and began educating the world about its existence and potential.
Visionaries or Early Adopters (13.5%): This group includes the first to recognize the practical value of Bitcoin beyond speculation. They are visionaries seeking innovative ways to apply the technology, such as developing payment platforms, decentralized markets, or even blockchain-based digital art. Early adopters were crucial in creating Bitcoin's initial infrastructure, like exchanges, wallets, and associated services. They evangelize about Bitcoin and help build a community around the cryptocurrency.
Pragmatists or Early Majority (34%): Pragmatists are cautious but influenced by evidence of success and utility. They start adopting Bitcoin once they see it has practical applications and there's a significant user base. This group is important because their adoption marks the point where Bitcoin begins to be seen as a viable technology for businesses and consumers. Here, Bitcoin starts to be considered not just as an investment but as a daily financial tool.
Conservatives or Late Majority (34%): The conservatives adopt Bitcoin when it has become mainstream. They need to see that Bitcoin is widely accepted and that the risks associated with its use have decreased. Their adoption comes thanks to the normalization of Bitcoin in everyday applications like store payments, remittance services, or even taxes in some ju…