The monetization process of Bitcoin also follows a similar trajectory. In this analogy, the material that continues to endure sustained pressure is the US dollar credit system.
The first phase is discovery. Both returns and volatility are extremely high; large funds find it difficult to allocate to Bitcoin, and it is also hard to obtain financing by using it as collateral.
The second phase is maturation. Returns and volatility narrow in tandem, risk-adjusted returns improve, investors are able to expand their allocation, and it gradually becomes a more attractive collateral asset.
The third phase is monetization driven by the financial system. Dedicated capital and credit-driven buy orders begin to enter the Bitcoin market at scale, triggering a self-reinforcing loop; the uptrend accelerates again and breaks upward along a power-law trajectory.