Introduction

Bitcoin dominates the cryptocurrency industry, to the point that it acts as an index of the whole industry. As a result, Bitcoin’s bull and bear markets are experienced by all cryptocurrencies.

Bitcoin’s halving events create bull and bear markets in 4 year cycles. A halving triggers a bull market which, after a while, gets out of hand and turns into a bubble. Eventually the bubble pops and a bear market starts. This scenario has repeated every 4 years with every halving.

While Bitcoin has its own 4 year cycles, it has always been in a traditional bull market. Since the subprime mortgage crisis in 2008, central banks have been printing money and feeding stock markets. In times of crisis, Bitcoin gets highly correlated to stock markets. Whenever there is a short-term drop in stock markets, Bitcoin and the whole cryptocurrency industry experience a drop in price as well. If central banks stop money printing, the whole crypto industry might go into a long term bear market along with the traditional markets. That could be quite a disastrous setback on our road to decentralization.

Cryptocurrency industry have several projects which have value propositions totally unrelated to Bitcoin. These projects' coin prices though, are highly correlated to Bitcoin’s price. In order to present the value of decentralization properly, we have to decorrelate the crypto industry from Bitcoin as much as possible.

Rising Coin is designed to decorrelate from Bitcoin and traditional investment vehicles, both in traditional bull and bear markets, by introducing a unique game theory based on stock to flow and reverse-production-cost model.