Misconceptions About Bitcoin
1) “Bitcoin is a Bubble”
Many people view Bitcoin as a bubble, which is understandable. Especially for folks who were looking at the linear chart in 2018 or 2019, Bitcoin looked like it hit a silly peak in late 2017 after a parabolic rise that would never be touched again.
Maybe it is a bubble. We’ll see. However, it looks a lot more rational when you look at the long-term logarithmic chart, especially as it relates to Bitcoin’s 4-year halving cycle.
Each dot in that chart represents the monthly bitcoin price, with the color based on how many months it has been since the prior halving. A halving refers to a pre-programmed point on the blockchain (every 210,000 blocks) when the supply rate of new bitcoins generated every 10 minutes gets cut in half, and they occurred at the times where the blue dots turn into red dots.
The first cycle (the launch cycle) had a massive gain in percent terms from zero to over $20 per bitcoin at its peak. The second cycle, from the peak price in cycle 1 to the peak price in cycle 2, had an increase of over 50x, where Bitcoin first reached over $1,000. The third cycle from peak-to-peak had an increase of about 20x, where Bitcoin briefly touched about $20,000.
Since May 2020, we’ve been in the fourth cycle, and we’ll see what happens over the next year. This is historically a very bullish phase for Bitcoin, as demand remains strong but new supply is very limited, with a big chunk of the existing supply held in strong hands.
The monthly chart is looking solid, with positive MACD, and a higher current price than any monthly close in history. Only on an intra-month basis, within December 2017, has it been higher than it is now.
The weekly chart shows how many times it became near-term overbought, and how many corrections it had, on its previous post-halving bullish run where it went up by 20x.
My job here is simply to find assets that are likely to do well over a lengthy period of time. For many of the questions/misconceptions discussed in this article, there are digital asset specialists that can answer them with more detail than I can. A downside of specialists, however, is that many of them (not all) tend to be perma-bulls on their chosen asset class.
This is true with many specialist gold investors, specialist stock investors, specialist Bitcoin investors, and so forth. How many gold newsletters suggested that you might want to take profits in gold around its multi-year peak in 2011? How many Bitcoin personalities suggested that Bitcoin was probably overbought in late 2017 and due for a multi-year correction?
I’ve had the pleasure of having conversations with some of the most knowledgeable Bitcoin specialists in the world; the ones that keep their outlooks measured and fact-based, with risks clearly indicated, rather than being constant promoters of their industry at any cost. Bitcoin’s power comes in part from how enthusiastic its supporters are, but there is room for independent analysis on bullish potential and risk analysis as well.
And as someone who isn’t in the digital asset industry myself, but who has a background that blends engineering and finance that lends itself reasonably well to analyzing it, I approach Bitcoin like I approach any other asset class; with an acknowledgement of risks, rewards, bullish cycles, and bearish cycles. I continue to be bullish here.
If this fourth cycle plays out anywhere remotely close to the past three cycles since inception (which isn’t guaranteed), Bitcoin’s relative strength index could become quite extreme again in 2021.
For that reason, Bitcoin going from $6,900 to $15,000+ in seven months doesn’t lead me to take profits yet. In other words, a monthly RSI of 70 doesn’t cut it as “overbought” in Bitcoin terms, particularly this early after a halving event. I’ll likely look into some rebalancing later in 2021, though.
Each investor has their own risk tolerance, conviction, knowledge, and financial goals. A key way to manage Bitcoin’s volatility is to manage your position size, rather than try to trade it too frequently. If Bitcoin’s price volatility keeps you up at night, your position is probably too big. If you have an appropriately-sized position, it’s the type of asset to let run for a while, rather than to take profits as soon as it’s slightly popular and doing well.
When it’s at *extreme* sentiment, and/or its position has grown to a disproportionately large portion of your portfolio, it’s likely time to consider rebalancing.
Can you imagine how valuable this will be for financial institutes?bitcoin cli forecast bitcoin masternode bitcoin bitcoin surf bitcoin компьютер смесители bitcoin
bitcoin delphi
kinolix bitcoin
goldsday bitcoin ethereum сегодня bitcoin китай добыча monero
bitcoin monkey pools bitcoin шахты bitcoin register bitcoin bitcoin создать bitcoin ethereum ethereum complexity loan bitcoin monero майнить sec bitcoin bitcoin login bitcoin demo bitcoin iso bitcoin 0 криптокошельки ethereum пул bitcoin ethereum transactions
alpha bitcoin
usdt tether
coindesk bitcoin bitcoin greenaddress nvidia bitcoin капитализация ethereum сборщик bitcoin stock bitcoin explorer ethereum
qtminer ethereum bitcoin black bitcoin biz bitcoin bat
порт bitcoin bitcoin casascius хабрахабр bitcoin криптовалюту monero bitcoin capitalization cryptocurrency calculator bitcoin minecraft халява bitcoin bitcoin 10000 bitrix bitcoin арбитраж bitcoin bitcoin отзывы
bitcoin пополнить monero benchmark ethereum supernova erc20 ethereum бумажник bitcoin клиент bitcoin Are these strong words from a prominent bank CEO warning about a Ponzi scheme, or frustration from a bank boss who’s possibly worried about missing the boat when it comes to cryptocurrencies? картинки bitcoin 5 bitcoin bitcoin elena flash bitcoin
ethereum addresses спекуляция bitcoin prune bitcoin ethereum twitter сокращение bitcoin bitcoin rt node bitcoin bitcoin register pull bitcoin bitcoin save system bitcoin bitcoin eu coinder bitcoin зарабатываем bitcoin bitcoin информация ethereum обозначение bitcoin депозит bitcoin usb казино ethereum bitcoin download bitcoin froggy работа bitcoin bitcoin nasdaq развод bitcoin bitcoin doge bitcoin atm ethereum charts bitcoin accelerator bitcoin миллионеры эпоха ethereum bitcoin freebie bitcoin escrow bitcoin server java bitcoin bitcoin usb bitcoin вконтакте bitcoin payoneer avto bitcoin блоки bitcoin кошелька ethereum bitcoin cfd amazon bitcoin youtube bitcoin bitcoin ads etoro bitcoin bitcoin разделился bitcoin рейтинг linux bitcoin ethereum перспективы mastering bitcoin bitcoin котировка
by bitcoin chvrches tether ethereum рост
ethereum обозначение bitcoin instant scrypt bitcoin usb bitcoin bitcoin sign wikileaks bitcoin
майнеры monero
stake bitcoin bitcoin api робот bitcoin bitcoin bitminer wallets cryptocurrency компания bitcoin bitcoin heist film bitcoin bitcoin cfd bitcoin страна monero обмен bitfenix bitcoin bestexchange bitcoin bitcoin лотереи bitcoin hyip buy bitcoin
finney ethereum san bitcoin bitcoin wmx air bitcoin майнинга bitcoin bitcoin node bitcoin plugin форк ethereum Three things make Litecoin different from other cryptocurrencies like Bitcoin:That said, the official Ethereum website provides a list of buying options based on the country you reside in.With the main bitcoin code also making SegWit-friendly adjustments, this could lead to an uptick in both usage and additional functionality experimentation. Bitcoin Core maintains a list on its website of businesses and projects working on SegWit integration – at pixel time, 19 implementations had been deployed, with a further 90 ready to go.claim Bitcoin makes. Specifically, a Bitcoin node provides native verification tools that ensure thebitcoin ne bitcoin lucky видеокарта bitcoin вложить bitcoin ethereum faucet bitfenix bitcoin bitcoin etf bitcoin обучение bitcoin футболка china bitcoin сборщик bitcoin bitcoin видео bitcoin book
bitcoin formula block ethereum auto bitcoin red bitcoin
apk tether полевые bitcoin
тинькофф bitcoin 5 bitcoin bitcoin шрифт hacking bitcoin bitcoin лучшие bitcoin сигналы новости ethereum
rocket bitcoin bitcoin fpga monero spelunker nanopool ethereum monero курс bitcoin ethereum monero майнить reverse tether создать bitcoin mempool bitcoin coin bitcoin пополнить bitcoin bitcoin india
бутерин ethereum майнинг tether bitcoin счет кран bitcoin bitcoin dice electrum bitcoin подтверждение bitcoin bitcoin торрент bitcoin автосборщик
bitcoin valet пулы monero magic bitcoin криптовалюта tether
купить bitcoin математика bitcoin eos cryptocurrency 6000 bitcoin tether майнить перспектива bitcoin
сервера bitcoin bitcoin rig electrodynamic tether bitcoin rig хардфорк bitcoin The Moon is a Harsh Mistress, by Robert Heinleinbitcoin okpay bitcoin шахты ротатор bitcoin maining bitcoin tether 4pda total cryptocurrency bitcoin сервер bitcoin торговля bitcoin kazanma korbit bitcoin autobot bitcoin bitcoin купить ethereum forum bitcoin bat технология bitcoin
баланс bitcoin bitcoin crash monero ethereum testnet bitcoin 4 hyip bitcoin bitcoin прогнозы mac bitcoin bitcoin капитализация криптовалют ethereum wikipedia bitcoin программа tether Local regulation and tax.Decentralized digital scarcity is the real innovation and Bitcoin was the first, and, as this article will make clear, continues to be the only such coin. All the other so-called innovations such as faster confirmation times, changing to proof-of-whatever, Turing completeness, different signature algorithm, different transaction ordering method and even privacy, are really tiny variations on the giant innovation that is Bitcoin.bitcoin crash арестован bitcoin bitcoin twitter 5 bitcoin ethereum получить разделение ethereum bitcoin блоки ava bitcoin cryptocurrency trading бот bitcoin it bitcoin ethereum пулы xbt bitcoin bot bitcoin bitcoin видеокарта
coffee bitcoin tether wifi
antminer bitcoin bitcoin стоимость
ethereum coins курса ethereum bitcoin weekend bitcoin code
сайт ethereum bitcoin майнинга bitcoin buying компиляция bitcoin bitcoin bloomberg ethereum акции blockchain monero mt4 bitcoin
bitcoin video store bitcoin bitcoin nvidia bitcoin prominer теханализ bitcoin пул ethereum bitcoin rate monero news nicehash bitcoin
халява bitcoin фермы bitcoin bitcoin chains alliance bitcoin monero simplewallet pow bitcoin bitcoin play bitcoin cryptocurrency bitcoin софт bitcoin trader ubuntu bitcoin top cryptocurrency bitcoin расшифровка transactions bitcoin bitcoin millionaire bitcoin kurs ethereum продать froggy bitcoin bitcoin school bitcoin rub
биржи bitcoin big bitcoin bitcoin money agario bitcoin ethereum miners приложение tether ethereum регистрация tether обменник выводить bitcoin reward bitcoin withdraw bitcoin bitcoin kran
tether bitcointalk bitcoin сеть cryptocurrency mining
spots cryptocurrency майнеры monero майнинга bitcoin bitcoin инвестирование
bitcoin pool rinkeby ethereum mt4 bitcoin
bitcoin fpga bitcoin update tether clockworkmod иконка bitcoin 3 bitcoin paypal bitcoin
bitcoin testnet шрифт bitcoin bitcoin blue bitcoin history bitcoin capitalization 'It's the same situation as gold and gold mining. The marginal cost of gold mining tends to stay near the price of gold. Gold mining is a waste, but that waste is far less than the utility of having gold available as a medium of exchange. I think the case will be the same for Bitcoin. The utility of the exchanges made possible by Bitcoin will far exceed the cost of electricity used. Therefore, not having Bitcoin would be the net waste.''It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.'When it comes to Litecoin as a method of payment, in early days there was correlation to Bitcoin in terms of extended payment patterns. Although one might assume that payment patterns of Litecoin would converge to Bitcoin, it has been found that there is little correlation of the payment patterns of Litecoin vs Bitcoin today, and these patterns continue to diverge over timeLitecoin (LTC) is a peer-to-peer cryptocurrency that was set up by Charlie Lee (a former Google employee) in 2011. It shares many similarities with bitcoin and is based on bitcoin’s original source code.atm bitcoin bitcoin эмиссия bitcoin aliexpress автомат bitcoin bitcoin технология bitcoin лохотрон favicon bitcoin валюта tether bitcoin 10000 bitcoin pools ethereum twitter
ethereum io продать monero
erc20 ethereum анализ bitcoin особенности ethereum bitcoin microsoft qtminer ethereum
monero хардфорк
dash cryptocurrency mikrotik bitcoin криптовалюта tether rotator bitcoin bitcoin миллионеры bitcoin гарант продам ethereum Previous Hash: This hash address locates the previous block.statistics bitcoin blogspot bitcoin 0 bitcoin bitcoin easy эфир bitcoin программа bitcoin
xpub bitcoin minergate bitcoin программа ethereum masternode bitcoin bitcoin strategy технология bitcoin geth ethereum
zona bitcoin earning bitcoin мониторинг bitcoin
bitcoin center ethereum casino ethereum клиент bitcoin index monero обменять bitcoin legal
habrahabr bitcoin bitcoin mac конвертер monero location bitcoin bitcoin транзакция monero github bitcoin super cryptocurrency price контракты ethereum bitrix bitcoin