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.
multiply bitcoin But information is not just communicated through price volatility. Volatility is also how bitcoin gets distributed and how the network becomes further decentralized. Every time a bitcoin is sold, someone else is buying. Consistently over time, the ownership of the network becomes more decentralized, and this occurs most acutely in bouts of volatility. In very tangible ways, the volatility strengthens bitcoin by decentralizing it and reinforcing that while tulips may die, bitcoin never does. As the network becomes more decentralized, it similarly becomes more censorship resistant and each individual within the network holds a smaller and smaller share of the currency (on average) resulting in a dynamic in which, over time, price is less exposed to the preferences of a few large holders. It is not to say that there do not remain large holders that can singularly influence price and volatility, but as a directional trend, the impact of any individual on price diminishes over time and often directly through the distributive function of volatility itself.server bitcoin mini bitcoin alpha bitcoin dash cryptocurrency exchange bitcoin deep bitcoin bitcoin payza
форки ethereum
litecoin bitcoin криптовалюта ethereum видео bitcoin block bitcoin ethereum dark разработчик bitcoin bitcoin dance bitcoin formula bitcoin step bitcoin clock ethereum форки bitcoin бесплатно blog bitcoin reward bitcoin ethereum телеграмм monero minergate joker bitcoin bitcoin tx bitcoin видеокарты pool bitcoin dwarfpool monero In the 1980s, American bankers hit upon a way finance takeovers at massive scale by floating so-called junk bonds, then busting up the target company and reaping massive rewards from the sale of the parts. In this way, managerial capitalism eventually lost its hold over business, and became a servant of the capital markets.How Much a Miner Earnsnew bitcoin phoenix bitcoin webmoney bitcoin capitalization bitcoin bitcoin работа q bitcoin multibit bitcoin monero wallet love bitcoin bitcoin nodes habr bitcoin tether usdt cryptocurrency mining майнить ethereum создатель bitcoin bitcoin пирамиды mining monero bitcoin wm bitcoin community купить tether tether перевод bitcoin protocol billionaire bitcoin tether bootstrap gambling bitcoin
курс tether
bitcoin two bot bitcoin обмен bitcoin monero новости
china bitcoin протокол bitcoin обмен monero bitcoin cz bitcoin ne ethereum supernova bitcoin получение monero address ethereum chaindata
bitcoin рухнул bitcoin ether майнер ethereum смесители bitcoin uk bitcoin bitcoin s microsoft bitcoin играть bitcoin bitcoin legal сервисы bitcoin roulette bitcoin cryptocurrency trading korbit bitcoin bitcoin видео cryptocurrency mining кости bitcoin ethereum transactions кости bitcoin express bitcoin future bitcoin cryptocurrency wallet bitcoin mining
ethereum сегодня bitcoin motherboard bitcoin ads bitcoin bio краны monero icon bitcoin monero address With these blockchain interview questions and answers, we hope you will be able to sail through your blockchain interview with confidence. However, if you want to dive deep check out our tutorial on blockchain and our Blockchain Certification Training Course that will help you achieve thorough expertise in the technology.Monerobitcoin взлом But even for those familiar with the usual Ethereum explorers such as Etherscan, Etherchain and Blockchair, the new sites for tracking Eth 2.0 activity may be difficult to decipher. This guide is meant to be a resource for understanding their new terminology and gleaning useful insights about the activity of Ethereum’s proof-of-stake network. котировка bitcoin tether обзор ethereum casino ethereum метрополис monero кошелек ethereum бесплатно arbitrage cryptocurrency monero rur
bitcoin blockstream сбербанк ethereum бот bitcoin
bitcoin торги ethereum добыча обменники bitcoin kupit bitcoin bitcoin betting youtube bitcoin ethereum кран
testnet bitcoin bitcoin википедия bitcoin instagram blacktrail bitcoin bitcoin matrix config bitcoin bitcoin xt
bitcoin anonymous компьютер bitcoin ethereum капитализация
bitcoin news p2pool monero bitcoin лохотрон claymore monero
bitcoin сеть bitcoin развод bitcoin цена pizza bitcoin пулы ethereum bitcoin оплатить bitcoin python accepts bitcoin чат bitcoin cpuminer monero visa bitcoin
bitcoin goldmine bitcoin кредит monero hardware бот bitcoin birds bitcoin statistics bitcoin bitcoin луна bitcoin sha256 bitcoin analytics bitcoin cz block ethereum партнерка bitcoin bitcoin india stock bitcoin
падение ethereum bitcoin airbit bitcoin zone bitcoin simple bitcoin alert buy ethereum Hardware Walletsmonero хардфорк
Venture capitalists, such as Peter Thiel's Founders Fund, which invested US$3 million in BitPay, do not purchase bitcoins themselves, instead funding bitcoin infrastructure like companies that provide payment systems to merchants, exchanges, wallet services, etc. In 2012, an incubator for bitcoin-focused start-ups was founded by Adam Draper, with financing help from his father, venture capitalist Tim Draper, one of the largest bitcoin holders after winning an auction of 30,000 bitcoins, at the time called 'mystery buyer'. The company's goal is to fund 100 bitcoin businesses within 2–3 years with $10,000 to $20,000 for a 6% stake. Investors also invest in bitcoin mining. According to a 2015 study by Paolo Tasca, bitcoin startups raised almost $1 billion in three years (Q1 2012 – Q1 2015).ann monero bitcoin cloud bitcoin flapper bitcoin приложение bitcoin zone порт bitcoin ethereum exchange monero calculator xapo bitcoin ethereum mist jax bitcoin tether верификация
ninjatrader bitcoin
weekend bitcoin dark bitcoin конференция bitcoin значок bitcoin алгоритм monero ethereum info earning bitcoin ethereum web3
адрес ethereum cold bitcoin love bitcoin bitcoin datadir bitcoin explorer bitcoin future alpha bitcoin topfan bitcoin 999 bitcoin ethereum биржа ethereum рост ethereum price добыча bitcoin видеокарты bitcoin продам bitcoin bitcoin prominer etherium bitcoin
bitcoin marketplace
download tether bitcoin блок bitcoin котировка ethereum курсы monero калькулятор
monero новости форк bitcoin bitcoin book bitcoin base love bitcoin bitcoin разделился краны monero secp256k1 bitcoin bitcoin ios forum ethereum auto bitcoin 999 bitcoin bitcoin cz bitcoin аналоги billionaire bitcoin rx470 monero bitcoin ebay перевод tether bitcoin часы roulette bitcoin reklama bitcoin ubuntu ethereum python bitcoin кошелька ethereum monero btc карты bitcoin cryptocurrency tech bitcoin автоматически q bitcoin bitcoin алгоритм hd7850 monero adc bitcoin bitcoin png decred cryptocurrency bitcoin database
play bitcoin продать bitcoin tether wallet
cubits bitcoin кости bitcoin настройка monero bitcoin keywords dog bitcoin site bitcoin ethereum com уязвимости bitcoin bitcoin покер
bitcoin transaction контракты ethereum
bitcoin pdf bitcoin png bitcoin настройка bitcoin plus bitcoin trojan bitcoin php bitcoin vip
fpga ethereum bitcoin биржа blog bitcoin
favicon bitcoin king bitcoin bitcoin logo claymore monero прогноз ethereum bitcoin хабрахабр bitcoin all ethereum faucet rise cryptocurrency
gif bitcoin bitcoin транзакция bitcoin обменники bitcoin protocol etherium bitcoin
bitcoin комиссия bitcoin математика 600 bitcoin майнить bitcoin cryptocurrency calendar bitcoin currency There is so much to talk about when trying to understand the correct blockchain definition, so I thought it would be best to break everything down. The next part of my 'What is Blockchain' guide is going to talk about why it is called blockchain!ethereum forum ethereum miners xronos cryptocurrency forum ethereum покупка ethereum ethereum курсы криптовалюта tether xpub bitcoin bitcoin картинка the ethereum сделки bitcoin bitcoin книга bitcoin продам ethereum цена book bitcoin
The number of times you are successful in winning the mining reward can also be quite volatile, meaning that you could go a few days or even weeks without getting anything.bitcoin стоимость bitcoin получить часы bitcoin agario bitcoin bitcoin machines bitcoin background kurs bitcoin дешевеет bitcoin
monero price токены ethereum ethereum капитализация
bitcoin bat
краны monero
bitcoin agario fee bitcoin котировки ethereum golden bitcoin bazar bitcoin bitcoin china cryptocurrency charts bitcoin machine ротатор bitcoin bitcoin сервера монеты bitcoin вход bitcoin bitcoin capitalization bitcoin gif ethereum api ethereum форки lamborghini bitcoin ninjatrader bitcoin sec bitcoin coinbase ethereum bitcoin dat solidity ethereum валюта monero wiki ethereum bitcoin продам ethereum transaction bitcoin 123 bitcoin сервисы dog bitcoin bitcoin youtube
alpari bitcoin bubble bitcoin ethereum farm
dark bitcoin эфир ethereum bitcoin captcha widget bitcoin обвал bitcoin bitcoin png ethereum course joker bitcoin cryptocurrency tech bitcoin шифрование фри bitcoin bitcoin qiwi ethereum russia
parity ethereum bitcoin machine куплю ethereum token bitcoin ru bitcoin collector bitcoin bitcoin луна bitcoin блоки bitcoin gift bitcoin monkey ethereum telegram golden bitcoin monero продать ethereum news monero faucet bitcoin аккаунт today bitcoin ethereum russia зарегистрироваться bitcoin bitcoin 2020 ethereum 4pda status bitcoin платформа bitcoin зарегистрироваться bitcoin bitcoin блокчейн ethereum кошельки stealer bitcoin биржа bitcoin bitcoin forum polkadot store bitcoin терминалы bitcoin anonymous l bitcoin bitcoin зарегистрироваться bitcoin вконтакте bank cryptocurrency bitcoin markets tether wifi
coingecko ethereum bitcoin vip mine ethereum алгоритм monero
bitcoin crush best cryptocurrency bitcoin займ bitcoin машины alpha bitcoin стратегия bitcoin bitcoin s scrypt bitcoin мерчант bitcoin bitcoin компьютер claim bitcoin книга bitcoin coin bitcoin konvert bitcoin dark bitcoin antminer ethereum bitcoin майнить world bitcoin bitcoin mine аналоги bitcoin masternode bitcoin курса ethereum carding bitcoin
600 bitcoin bitcoin фильм
википедия ethereum порт bitcoin freeman bitcoin bubble bitcoin карта bitcoin bitcoin group monero dwarfpool
bitcoin машина bitcoin exchange bitcoin bazar динамика ethereum bitcoin site
ico cryptocurrency bitcoin novosti calculator ethereum bitcoin foundation счет bitcoin
проекта ethereum reddit bitcoin nvidia monero пополнить bitcoin fpga ethereum bitcoin block bitcoin cards bitcoin оборот ethereum википедия 2016 bitcoin bitcoin people bitcoin ishlash bitcoin пирамиды tether provisioning genesis bitcoin bitcoin valet bux bitcoin bitcoin google goldmine bitcoin
кошельки bitcoin теханализ bitcoin
ann ethereum проекта ethereum
planet bitcoin покер bitcoin pro100business bitcoin цена ethereum bitcoin экспресс bitcoin rub bitcoin wallpaper платформ ethereum bitcoin создать bitcoin neteller bitcoin ledger x bitcoin coindesk bitcoin bitcoin traffic bitcoin frog monero майнить bitcoin paypal bitcoin bcn
wiki ethereum bitcoin bloomberg bitcoin заработок Externally owned accounts vs. contract accountsr bitcoin контракты ethereum история ethereum trade cryptocurrency bitcoin cms tether coin cap bitcoin bitcoin шахта bitcoin переводчик bitcoin список bitcoin php bitcoin даром accept bitcoin токен bitcoin the marketplace.' One gigantic distortion we are faced with today is centralстатистика ethereum bitcoin bloomberg bitcoin shop claim bitcoin ethereum прогнозы разработчик bitcoin bitcoin chart txid ethereum people bitcoin рулетка bitcoin bitcoin зарегистрировать casascius bitcoin registration bitcoin
bitcoin download ethereum курсы 0 bitcoin bitcoin click
wisdom bitcoin charts bitcoin gek monero bitcoin usa polkadot ico bitcoin japan
bitcoin mainer bitcoin анализ bitcoin png bitcoin 123 bitcoin converter bitcoin trinity
cryptocurrency gold android tether mercado bitcoin bitcoin trojan bitcoin otc bitcoin rpg datadir bitcoin bitcoin banking ads bitcoin торрент bitcoin my ethereum wiki ethereum secp256k1 ethereum goldsday bitcoin film bitcoin kraken bitcoin
bitcoin сбербанк bitcoin получить bitcoin майнить Bitcoin’s algorithm limits it to 21 million bitcoins total.forex bitcoin вывод ethereum bitcoin ads
bitcoin зарегистрировать bitcoin two
japan bitcoin сколько bitcoin bio bitcoin
bitcoin landing bitcoin pizza bitcoin wmx block ethereum
bitcoin мерчант bitcoin qr ethereum web3 trinity bitcoin
ethereum alliance mikrotik bitcoin bitcoin instagram 50000 bitcoin monero биржа bitcoin это обзор bitcoin script bitcoin часы bitcoin автосерфинг bitcoin
bitcoin команды ethereum майнить cryptocurrency magazine bitcoin change monero blockchain secp256k1 bitcoin bitcoin iso casper ethereum monero обменять difficulty ethereum group bitcoin bitcoin hash bitcoin shops bitcoin сервер обналичить bitcoin обновление ethereum bitcoin таблица анонимность bitcoin bitcoin коды
