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 online cryptocurrency calendar bitcoin автосборщик card bitcoin пожертвование bitcoin
blocks bitcoin
flappy bitcoin bitcoin hesaplama bitcoin spinner bitcoin sec bitcoin traffic bitcoin пожертвование java bitcoin c bitcoin ads bitcoin nanopool monero new bitcoin bitcoin сети nicehash bitcoin life bitcoin
hd bitcoin bitcoin адреса Mist: An Ethereum-based web browserWhich factors affect Ethereum and Ether?обменник ethereum
ethereum os вложения bitcoin
bitcoin king ecopayz bitcoin 22 bitcoin ethereum claymore китай bitcoin bitcoin зарегистрироваться bitcoin login трейдинг bitcoin
bitcoin 10000 download bitcoin monero форк bitcoin com
bitcoin compromised bitcoin команды bitcoin стратегия аналитика bitcoin википедия ethereum bitcoin сатоши
bitcoin algorithm check bitcoin bitcoin trader okpay bitcoin 10000 bitcoin new bitcoin оборот bitcoin scrypt bitcoin часы bitcoin bitcoin easy bitcoin etf uk bitcoin проверка bitcoin bitcoin кликер tether coinmarketcap bitcoin usd bitcoin sec кошелька bitcoin работа bitcoin
dorks bitcoin
bitcoin sha256 microsoft bitcoin дешевеет bitcoin bitcoin loto продать monero генераторы bitcoin сайте bitcoin кошелька bitcoin roll bitcoin ethereum обменники bitcoin 4000 bitcoin установка email bitcoin bitcoin com bitcoin pay segwit bitcoin bitcoin king карты bitcoin Getting Bitcoin blockchain explained is essential to understanding how blockchain works. The Bitcoin blockchain is a database (known as a 'ledger') that consists only of Bitcoin transaction records. There is no central location that holds the database, instead, it is shared across a huge network of computers. So, for new transactions to be added to the database, the nodes must agree that the transaction is real and valid.cryptocurrency calendar ethereum miner bitcoin scripting mine ethereum vps bitcoin bitcoin take ethereum ферма
homestead ethereum вклады bitcoin робот bitcoin monero hardfork обменник ethereum bitcoin puzzle bitcoin fake bitcoin лотерея обменники ethereum конвертер bitcoin q bitcoin fork ethereum Until 2009, Finney's system was the only RPoW system to have been implemented; it never saw economically significant use.poloniex ethereum (Euro address)monero hardware escrow bitcoin bitcoin location bitcoin online
reverse tether cryptocurrency price
партнерка bitcoin ethereum blockchain cryptonight monero ethereum calc buy tether bitcoin bear 100 bitcoin bitcoin machine bitcoin бумажник bitcoin карта bitcoin форк json bitcoin earn bitcoin mail bitcoin bitcoin masters bitcoin wordpress обмен tether
monero node fake bitcoin
ethereum валюта bitcoin spin block bitcoin ethereum frontier DevelopersIf you don't like the idea of a digital wallet, there are no ETFs that track Litecoin yet. However, GBTC is an ETF that tracks Bitcoin, which you can purchase on a platform like eToro. You can also invest in other cryptocurrencies on eToro as well.bitcoin rus genesis bitcoin 'When a state currency is challenged, the state itself is challenged, and market forces move swiftly around sickly, depreciating inhibitors.'bitcoin girls Back in 2015, all you could do was send ETH from one Ethereum account to another. Here are just some of things you can do today.магазины bitcoin bitcoin pdf торговать bitcoin tether майнить bitcoin weekend
bitcoin 4000 Anyone can download the Bitcoin software, create a keypair, and receive Bitcoins. Your public key is your identity in the Bitcoin system.компиляция bitcoin up bitcoin bitcoin rt mt5 bitcoin
tether wallet steam bitcoin ethereum упал
bitcoin дешевеет bitcoin trend запросы bitcoin bitcoin weekly bitcoin видеокарты planet bitcoin
cryptocurrency charts bitcoin математика bitcoin neteller сеть bitcoin bitcoin google bitcoin криптовалюта программа bitcoin bitcoin логотип bitcoin сша
программа bitcoin
казино ethereum bitcoin king pos bitcoin bitcoin main bitcoin будущее ethereum habrahabr bitcoin qiwi
bitfenix bitcoin отзыв bitcoin cryptocurrency trade monero криптовалюта карты bitcoin получение bitcoin bitcoin футболка bitcoin кредиты кошель bitcoin создатель bitcoin bitcoin обои avalon bitcoin bitcoin рубль bitcoin заработать
кошель bitcoin bitcoin surf kraken bitcoin bitcoin майнить bittrex bitcoin battle bitcoin
ethereum markets bcn bitcoin bitcoin кошелька reverse tether bitcoin талк win bitcoin настройка bitcoin bitcoin compromised mercado bitcoin alien bitcoin
captcha bitcoin The idea is to use blockchains (especially Ethereum) to improve more complex financial applications – such as lending, wills and insurance – and stablecoins, alternative coins that aim to stabilize cryptocurrency prices.tether bootstrap bitcoin история проект bitcoin bitcoin лучшие bitcoin суть ethereum логотип
monero wallet wechat bitcoin rpg bitcoin asrock bitcoin bitcoin drip платформы ethereum roll bitcoin bitcoin stock dollar bitcoin planet bitcoin bitcoin ios акции bitcoin полевые bitcoin лото bitcoin развод bitcoin secp256k1 ethereum bitcoin конвертер bitcoin видео ethereum статистика card bitcoin теханализ bitcoin gek monero сайты bitcoin loan bitcoin инструкция bitcoin ethereum обмен moon ethereum bitcoin icon life bitcoin bitcoin reward bitcoin now buy tether bitcoin yandex oil bitcoin boxbit bitcoin ethereum blockchain ethereum contract ethereum forks отзывы ethereum зебра bitcoin 6000 bitcoin rate bitcoin
bitcoin rotators рынок bitcoin habrahabr bitcoin reddit cryptocurrency bitcoin hack ethereum цена circle bitcoin
supernova ethereum #3 Crowdfundingbitcoin funding factory bitcoin bitcoin биржа rise cryptocurrency bitcoin machine bitcoin взлом
bitcoin ledger статистика ethereum ethereum txid bitcoin core bitcoin zone hourly bitcoin кран ethereum bitcoin книги
bitcoin rt bitcoin банк bitcoin transaction ethereum web3 ethereum bonus bitcoin курс 50 bitcoin bitcoin laundering hashrate bitcoin bitcoin simple bitcoin проект обмен ethereum сеть ethereum bitcoin neteller earning bitcoin bitcoin стратегия wallet tether siiz bitcoin monero hashrate bitcoin best store bitcoin programming bitcoin bitcoin usd ethereum debian
bitcoin car greenaddress bitcoin geth ethereum simplewallet monero bitcoin plus lucky bitcoin gadget bitcoin golang bitcoin
ethereum проблемы ico ethereum monero обмен bitcoin agario 16 bitcoin pixel bitcoin click bitcoin сколько bitcoin time bitcoin bubble bitcoin bitcoin растет status bitcoin
bitcoin фирмы bitcoin school ethereum forks elysium bitcoin bitcoin golden
монета ethereum bitcoin greenaddress добыча bitcoin bitcoin arbitrage ethereum статистика ethereum инвестинг bitcoin значок
putin bitcoin ethereum geth erc20 ethereum bitcoin смесители bank bitcoin store bitcoin bitcoin миксеры car bitcoin стратегия bitcoin сложность ethereum flypool monero cryptocurrency forum bitcoin instagram monero nicehash wirex bitcoin msigna bitcoin bitcoin 99 asics bitcoin bitcoin kaufen trade cryptocurrency multisig bitcoin bitcoin preev bitcoin 999 карты bitcoin деньги bitcoin bitcoin блок bitcoin landing cryptocurrency market bitcoin block bounty bitcoin bitcoin зебра wirex bitcoin проекты bitcoin mine ethereum bitcoin переводчик bitcoin xyz bitcoin department Now that we’ve covered the basics of transaction execution, let’s look at some of the differences between contract-creating transactions and message calls.mikrotik bitcoin
bitcoin compromised
c bitcoin okpay bitcoin bitcoin команды ethereum кошельки bitcoin работать bitcoin freebitcoin
котировка bitcoin Benefits of Forex w/Bitcoin