What is a Black Swan Event?
A black swan event is an unpredictable and highly impactful event that has far-reaching implications. It can be positive or negative but its effects are often profound and long lasting. In the world of cryptocurrency, a black swan event could refer to anything from the emergence of new technology, regulations or market forces that have unexpected consequences on the price of existing cryptocurrencies or create opportunities for entirely new ones. While it’s impossible to predict when such events will occur, they can cause major changes in how people invest in cryptocurrency as well as how governments regulate them.
What are some examples of Black Swan Events?
Some examples of black swan events in the world of cryptocurrency include:
• The sudden surge in Bitcoin prices at the end of 2017 due to institutional investors entering into crypto markets
• 2018’s ban on initial coin offerings (ICOs) by China’s central bank which caused significant ripples across global markets
• The 2020 halving event which saw Bitcoin miners receiving half their rewards compared to before, leading to increased scarcity and thus higher prices for BTC
• A potential breakthrough in quantum computing which would allow hackers access to cryptographic keys used by blockchains and render them vulnerable
