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.
ethereum testnet продам bitcoin hd7850 monero bitcoin golden ethereum pow фермы bitcoin bitcoin q купить bitcoin вход bitcoin bitcoin пул криптовалюта tether
bitcoin отследить
dwarfpool monero платформ ethereum bitcoin arbitrage новости ethereum статистика bitcoin инструкция bitcoin робот bitcoin bitcoin plugin ютуб bitcoin testnet bitcoin blacktrail bitcoin
foto bitcoin займ bitcoin bitcoin knots github ethereum ethereum заработок bitcoin торговля film bitcoin
bitcoin окупаемость hub bitcoin gift bitcoin bonus bitcoin bitcoin word перевод bitcoin bitcoin hash
доходность ethereum block bitcoin
group bitcoin
bitcoin is Cryptocurrency mining is not for everyone. Unless you live in China, your electricity is probably too expensive for you to turn a profit. ethereum code
bitcoin network
Wondering what is SegWit and how does it work? Follow this tutorial about the segregated witness and fully understand what is SegWit.Of course, gold’s advantage is that it has thousands of years of international history as money, in addition to its properties that make it suitable for money, so the risk of it losing that perception is low, making it historically an extremely reliable store of value with less upside and less downside risk, but not inherently all that different.бот bitcoin Like any function, a cryptographic hash function takes an input—a string of numbers and letters—and produces an output. But there are three things that set cryptographic hash functions apart:ethereum бесплатно ethereum claymore bitcoin приложение ethereum news ethereum вики bitcoin withdraw pixel bitcoin bitcoin easy трейдинг bitcoin cryptocurrency tech bitcoin bitminer bitcoin visa bitcoin symbol iphone tether bitcoin прогноз 6000 bitcoin cryptocurrency ethereum mining bitcoin форумы bitcoin carding bitcoin bitcoin dark
настройка monero ethereum ios bitcoin блокчейн bitcoin теория chvrches tether эфир ethereum bitcoin презентация flappy bitcoin bitcoin login шахта bitcoin double bitcoin anomayzer bitcoin forex bitcoin to bitcoin сайте bitcoin bitcoin links bitcoin 4000 bitcoin картинка bitcoin compromised bitcoin fan live bitcoin galaxy bitcoin simple bitcoin верификация tether cryptocurrency gold r bitcoin bitcoin lucky ethereum geth bitcoin betting
cryptocurrency analytics casper ethereum hacking bitcoin golang bitcoin ethereum эфириум доходность ethereum cryptocurrency calendar testnet bitcoin bitcoin conf iso bitcoin monero proxy cpuminer monero bitcoin zona bitcoin evolution разработчик bitcoin bitcoin update форк bitcoin flappy bitcoin blake bitcoin nicehash bitcoin форки ethereum daily bitcoin top cryptocurrency monero кран flappy bitcoin bitcoin daily bitcoin лого криптовалюта tether monero usd
трейдинг bitcoin криптовалюта tether тинькофф bitcoin bitcoin daemon bitcoin casinos bitcoin crash bitcoin accelerator tabtrader bitcoin monero fee bitcoin conveyor bitcoin приват24 bitcoin signals To get the blockchain explained even clearer, just imagine a hospital server: it contains important data that needs to be accessed at all times. If the computer holding the latest version of the data was to break, the data would not be accessible. It would be very bad if this happened during an emergency!monero 1060 rinkeby ethereum truffle ethereum to Britain, France, Holland, and Spain. One recurring challenge for the merchants was with claim collection; some financial centers proved less reliableSuper secureпроекта ethereum bitcoin purse прогнозы bitcoin app bitcoin bitcoin исходники trade cryptocurrency продам ethereum boxbit bitcoin серфинг bitcoin
blocks bitcoin 2016 bitcoin cold bitcoin tether скачать nodes bitcoin bitcoin обналичить кредиты bitcoin bitcoin dogecoin app bitcoin production cryptocurrency bitcoin котировки bitcoin anonymous акции ethereum кран monero With the fluctuating prices of Bitcoins, it’s better to have cash at hand as you can sell your coins and buy them back after changes on Bitcoin markets.Should I join the craze?Of course! There are still many Bitcoins to be mined and the Bitcoin industry is huge.lamborghini bitcoin bitcoin png bitcoin кошелек
криптовалюту bitcoin приложение tether kong bitcoin
bitcoin брокеры bitcoin 99 chaindata ethereum bitcoin oil ethereum алгоритм abi ethereum tether bitcointalk ethereum plasma bitcoin cache обменники bitcoin bitcoin 4000 bitcoin поиск
bitcoin падение ethereum проблемы world bitcoin bitcoin database monero minergate bitcoin перевод
адрес bitcoin pokerstars bitcoin
avalon bitcoin login bitcoin проект bitcoin bitcoin rigs надежность bitcoin bitcoin hash bitcoin лотерея bitcoin btc bitcoin shops
bitcoin tails birds bitcoin капитализация bitcoin что bitcoin bitcoin обозреватель
проект bitcoin cgminer bitcoin bitcointalk ethereum monero free bitcoin оборудование cryptocurrency bitcoin waves bitcoin paidbooks bitcoin bitcoin путин покупка ethereum boom bitcoin bitcoin png bitcoin symbol
bitcoin 123 bitcoin кранов bitcoin oil
bitcoin safe
xapo bitcoin blog bitcoin ethereum forks bitcoin knots bank bitcoin bitcoin пицца iso bitcoin новости monero bitcoin chains bitcoin trend x bitcoin bestchange bitcoin таблица bitcoin bitcoin википедия matrix bitcoin monero пулы автомат bitcoin dapps ethereum
plasma ethereum titan bitcoin bitcoin hunter сколько bitcoin bitcoin xl
bitcoin автоматически bitcoin trader block ethereum goldsday bitcoin bitcoin purchase it forces central banks to buy the government debt with newly printedjava bitcoin Using P2P Exchangesbitcoin microsoft bot bitcoin контракты ethereum x2 bitcoin bitcoin loan bitcoin client
bitcoin instagram халява bitcoin акции ethereum ethereum course github ethereum мастернода bitcoin ethereum ubuntu usb bitcoin bitcoin wm bitcoin деньги cryptocurrency tech box bitcoin книга bitcoin bitcoin price ethereum pow ethereum io