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.
bitcoin монета ethereum russia рейтинг bitcoin bitcoin land bitcoin трейдинг
system bitcoin
ethereum виталий bitcoin перевод bitcoin nasdaq
mine monero bitcoin alliance bitcoin information bitcoin окупаемость
From bitcoin to blockchain to distributed ledgers, the cryptocurrency space is fast evolving, to the point where it can be difficult to see in which direction it’s headed.bitcoin service bitcoin blockchain bitcoin сервисы
bitcoin видеокарта config bitcoin будущее ethereum bitcoin 100 bitcoin trader разделение ethereum
ethereum настройка карты bitcoin bitcoin capital tether gps ethereum forum ethereum статистика bitcoin пицца bitcoin antminer bitcoin проект робот bitcoin bitcoin landing инструкция bitcoin bitcoin информация курсы bitcoin foto bitcoin bitcoin captcha lite bitcoin bitcoin fire
bitcoin софт collector bitcoin bitcoin sberbank
hourly bitcoin bitcoin xyz
hashrate ethereum yandex bitcoin
lamborghini bitcoin bank cryptocurrency
monero обмен
alpha bitcoin bank cryptocurrency tera bitcoin bitcoin golang
bitcoin litecoin ethereum news bitcoin cgminer bitcoin рынок
1 ethereum genesis bitcoin
exchange cryptocurrency bitcoin payza x2 bitcoin bitcoin hacking обменник bitcoin Payment verificationплатформ ethereum bitcoin кредит падение ethereum p2pool monero презентация bitcoin bitcoin вектор
hardware bitcoin check bitcoin tether кошелек ethereum explorer лотереи bitcoin
When transactions are initiated, they are cryptographically 'signed' by the transacting parties so that the network can validate the fact that sufficient funds are available to do as they wish. Each transaction is time-stamped for immutability and then added to a block of other transactions to be recorded by the network.foto bitcoin брокеры bitcoin bitcoin окупаемость habrahabr bitcoin decred cryptocurrency web3 ethereum masternode bitcoin
bitcoin weekly monero форум bitcoin database bitcoin banks tether apk
ethereum core opencart bitcoin трейдинг bitcoin
зарегистрироваться bitcoin ферма bitcoin get bitcoin эфир bitcoin abi ethereum ethereum падает icons bitcoin обзор bitcoin bitcoin joker форум bitcoin сбербанк bitcoin
новый bitcoin
автомат bitcoin claim bitcoin bounty bitcoin bitcoin коды 'Privacy is necessary for an open society in the electronic age. Privacy is not secrecy. A private matter is something one doesn’t want the whole world to know, but a secret matter is something one doesn’t want anybody to know. Privacy is the power to selectively reveal oneself to the world.'bitcoin cloud 33 bitcoin форекс bitcoin bitcointalk ethereum 600 bitcoin ethereum chaindata bitcoin кошелек новости bitcoin форумы bitcoin cms bitcoin ethereum swarm bitcoin авито bitcoin чат dogecoin bitcoin bitcoin testnet ethereum miners майнить ethereum bitcoin 99 In a decentralized system, the information is not stored by one single entity. In fact, everyone in the network owns the information.bitcoin ротатор Image for postLedgers, the foundation of accounting, are as ancient as writing and money.skrill bitcoin ethereum farm create bitcoin bitcoin ads bitcoin capital вебмани bitcoin анонимность bitcoin bitcoin alliance eos cryptocurrency
bitcoin avto компания bitcoin bitcoin сервисы kong bitcoin bitcoin 4096 bitcoin data доходность ethereum
ethereum картинки ico ethereum кошельки bitcoin суть bitcoin tether отзывы bitcoin click 2x bitcoin lamborghini bitcoin monero usd bitcoin рейтинг hash bitcoin
фото ethereum wired tether bitcoin monkey ethereum заработать нода ethereum bitcoin suisse форк bitcoin bitcoin etherium tether верификация bitcoin monkey ethereum бутерин bitcoin орг форумы bitcoin bitcoin utopia ethereum core bitcoin blockstream wechat bitcoin bitcoin лайткоин accepts bitcoin dwarfpool monero box bitcoin депозит bitcoin ethereum обмен bitcoin кранов android tether bitcoin 2x ethereum swarm usb tether tether обзор bitcoin видеокарты дешевеет bitcoin bitcoin экспресс вики bitcoin bitcoin окупаемость film bitcoin отзывы ethereum opencart bitcoin lamborghini bitcoin баланс bitcoin chvrches tether
bitcoin wsj bitcoin анимация bitcoin changer bitcoin maps проверка bitcoin bitcoin bear flex bitcoin of proto insurance contracts: investors will pre-order mining rigs from mining startups, who use the proceeds to produce the chips and manufactureBitcoinshort bitcoin торги bitcoin
monero pro bitcoin algorithm Blockchain’s industrial impactобои bitcoin продам ethereum bitcoin что space bitcoin bitcoin price bitcoin 4000 блок bitcoin wisdom bitcoin best bitcoin ethereum cryptocurrency
сбербанк ethereum transactions bitcoin bitcoin аналоги stock bitcoin bitcoin apk course bitcoin win bitcoin auction bitcoin
bitcoin blocks криптовалюта tether
верификация tether bitcoin blockchain график bitcoin live bitcoin bitcoin calculator bitcoin litecoin сша bitcoin ethereum форки
bitcoin china blacktrail bitcoin bitcoin bitcointalk bitcoin review ethereum получить символ bitcoin
bitcoin zebra
ethereum blockchain dat bitcoin download tether
credit bitcoin фермы bitcoin bitcoin lottery
cryptocurrency wikipedia visa bitcoin bitcoin вирус платформа bitcoin tabtrader bitcoin
bitcoin department счет bitcoin
bitcoin center bitcoin crypto
5 bitcoin bitcoin cards ethereum биткоин
bitcoin antminer ecdsa bitcoin A simple cryptocurrency wallet contains pairs of public and private cryptographic keys. The keys can be used to track ownership, receive or spend cryptocurrencies. A public key allows others to make payments to the address derived from it, whereas a private key enables the spending of cryptocurrency from that address.bitcoin usa bitcoin antminer
кредит bitcoin dat bitcoin geth ethereum bitcoin play bitcoin sphere bitcoin microsoft