Is the rise of Bitcoin analogous to the spread of an infectious disease?
Analysts at Barclays saw enough similarities to develop a pricing model for the cryptocurrency that takes its cues from the world of epidemiology. Their diagnosis: Bitcoin has probably peaked.
The Barclays model divides the pool of potential Bitcoin investors into three groups: susceptible, infected and immune. It assumes that as prices rise, “infections” spread by word-of-mouth (nobody likes missing out when their friends and colleagues are getting rich). Barclays analysts led by Joseph Abate in New York explained the rest in a note to clients on Tuesday:
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