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AlukarDrakulA | f3
@alukardrakula
Occam's razor is a philosophical principle stating that of all explanations, it is worth choosing the simplest one that does not require a lot of assumptions. This principle applies to cryptocurrencies as well. Many investors and enthusiasts try to find complex explanations for the rise or fall of prices, relying on conspiracy theories, insider trading or complex market models. However, Occam's razor suggests looking at simpler factors such as supply and demand, macroeconomic conditions, technology adoption, and regulation. For example, the rise in the price of bitcoin can be explained by an increase in interest from institutional investors and a limited issue of coins. The decrease is due to the impact of stricter regulations or mass asset sales. Occam's razor helps to weed out unnecessary speculation by focusing on the key causes and promotes rational analysis, which is extremely important in the volatile world of cryptocurrencies.
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Julia 🎩Ⓜ️
@serebro
Very interesting, I didn't know about this principle 👍 55 $DEGEN
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