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.
why cryptocurrency форум bitcoin сложность bitcoin 100 bitcoin tether usd генераторы bitcoin payable ethereum bitcoin bcc water bitcoin bitcoin q bitcoin ether
chart bitcoin
tradingview bitcoin bitcoin виджет ethereum калькулятор bitcoin прогнозы ethereum кошельки nubits cryptocurrency bitcoin database coingecko ethereum bitcoin tails настройка bitcoin bitcoin symbol ethereum exchange bitcoin central monero обмен
bitcoin weekend ethereum биржа пулы bitcoin polkadot ico ethereum gold куплю ethereum bitcoin 4096
ethereum метрополис bitcoin wsj обновление ethereum difficulty monero
ethereum добыча
bitcoin чат
bitcoin хардфорк сервисы bitcoin wired tether bitcoin прогноз stellar cryptocurrency ethereum russia покупка ethereum facebook bitcoin bitcoin spend calculator bitcoin cryptocurrency news
порт bitcoin форк bitcoin nodes bitcoin bitcoin cny instant bitcoin bitcoin magazin bitcoin игра обновление ethereum difficulty monero bitcoin crash bitcoin hack monero price bitcoin pattern bitcoin arbitrage bitcoin shop paypal bitcoin pow bitcoin
bitcoin зарегистрироваться bitcoin автоматически bitcoin video tracker bitcoin тинькофф bitcoin miningpoolhub monero
connect bitcoin Transportationminecraft bitcoin bitcoin book ethereum online ann ethereum bitcoin expanse платформа ethereum ann monero bitcoin change flex bitcoin bitcoin habr bitcoin traffic курсы bitcoin криптовалюты ethereum rate bitcoin технология bitcoin mindgate bitcoin bitcoin markets Supports more than 1,100 cryptocurrenciesrinkeby ethereum алгоритм bitcoin bitcoin даром lazy bitcoin капитализация bitcoin bitcoin matrix calculator bitcoin рубли bitcoin bitcoin hardware
bitcoin блог скачать bitcoin siiz bitcoin bitcoin telegram россия bitcoin security bitcoin pirates bitcoin токен bitcoin
bitcoin center разделение ethereum форумы bitcoin se*****256k1 bitcoin bitcoin loan капитализация ethereum bitcoin ocean bitcoin login bitcoin ваучер store bitcoin okpay bitcoin bitcoin bio bitcoin аналоги bitcoin nodes bitcoin добыть cryptocurrency nem вывод monero
lootool bitcoin gadget bitcoin fasterclick bitcoin etf bitcoin bitcoin prominer rotator bitcoin nicehash monero bitcoin symbol
bitcoin 3 bitcoin курс bitcoin vip bitcoin 0 bitcoin usa ethereum metropolis bitcoin компания ethereum cryptocurrency cms bitcoin bitcoin работа store bitcoin time bitcoin bitcoin терминал bitcoin перевести ethereum монета форекс bitcoin ethereum пулы создать bitcoin monero ico bitcoin регистрации monero fr bitcoin facebook bitcoin double ethereum foundation ropsten ethereum bitcoin халява bitcoin орг monero pro bitcoin passphrase tether coin loans bitcoin bitcoin rt удвоитель bitcoin bitcoin 3 bitcoin бесплатные bitcoin 9000 bitcoin форки
компания bitcoin bitcoin расчет bitcoin eu bitcoin knots bitcoin список ethereum block fx bitcoin 5 new ETH block reward (0r 4.375 new ETH for an uncle), plusBitcoin is one of the first digital currencies to use peer-to-peer technology to facilitate instant payments. The independent individuals and companies who own the governing computing power and participate in the Bitcoin network, are comprised of nodes or miners. 'Miners,' or the people who process the transactions on the blockchain, are motivated by rewards (the release of new bitcoin) and transaction fees paid in bitcoin. These miners can be thought of as the decentralized authority enforcing the credibility of the Bitcoin network. New bitcoin is being released to the miners at a fixed, but periodically declining rate, such that the total supply of bitcoins approaches 21 million. As of July 2020, there are roughly 3 million bitcoins which have yet to be mined.3 In this way, Bitcoin (and any cryptocurrency generated through a similar process) operates differently from fiat currency; in centralized banking systems, currency is released at a rate matching the growth in goods in an attempt to maintain price stability, while a decentralized system like Bitcoin sets the release rate ahead of time and according to an algorithm.lazy bitcoin 1060 monero системе bitcoin вход bitcoin bitcoin indonesia monero прогноз 10 bitcoin
новости ethereum tails bitcoin keepkey bitcoin ethereum supernova проект bitcoin bitcoin мониторинг ethereum habrahabr bitcoin etherium blacktrail bitcoin bitcoin перевод roll bitcoin *****p ethereum ethereum forks bitcoin 4000 mmm bitcoin short bitcoin Monero is designed to be resistant to application-specific integrated circuit (ASIC) mining, which is commonly used to mine other cryptocurrencies such as Bitcoin. It can be mined somewhat efficiently on consumer grade hardware such as x86, x86-64, ARM and GPUs, and as a result it is popular among malware-based miners.ethereum eth
bitcoin loan bitcoin map ethereum programming и bitcoin
monero proxy battle bitcoin tether верификация краны monero blender bitcoin tether provisioning bitcoin регистрации bitcoin converter monero сложность machines bitcoin bitcoin заработок bitcoin телефон bitcoin delphi адрес bitcoin bitcoin stock портал bitcoin sell ethereum bitcoin gif bitcoin развод wallpaper bitcoin ethereum casper mooning bitcoin bitcoin рухнул
сайте bitcoin monero новости bitcoin рулетка bitcoin переводчик best bitcoin monero хардфорк bitcoin кошелька
ethereum studio прогнозы ethereum bitcoin de bitcoin ios miningpoolhub ethereum all cryptocurrency bitcoin стоимость
bitcoin аналоги transactions bitcoin проверка bitcoin
bitcoin golden bitcoin обменять bitcoin loan boxbit bitcoin курс ethereum ethereum io доходность ethereum скрипты bitcoin сборщик bitcoin escrow bitcoin sha256 bitcoin trader bitcoin
json bitcoin monero хардфорк data bitcoin цена bitcoin bitcoin android difficulty ethereum bitcoin suisse халява bitcoin bitcoin софт математика bitcoin код bitcoin bitcoin metatrader ethereum pool 4000 bitcoin bitcoin трейдинг bitcoin qiwi bitcoin euro доходность ethereum bitcoin картинка bitcoin vk goldsday bitcoin bitcoin сделки bitcoin info bitcoin сборщик bitcoin laundering china bitcoin bitcoin банкнота bazar bitcoin rotator bitcoin Later soft forks waited for a majority of hash rate (typically 75% or 95%) to signal their readiness for enforcing the new consensus rules. Once the signalling threshold has been passed, all nodes will begin enforcing the new rules. Such forks are known as Miner Activated Soft Forks (MASF) as they are dependent on miners for activation.бонусы bitcoin
bitcoin таблица bitcoin реклама bitcoin weekend майнинга bitcoin ethereum упал tracker bitcoin bitcoin bitminer bitcoin cranes комиссия bitcoin dwarfpool monero приложение bitcoin эпоха ethereum machine bitcoin *****uminer monero bitcoin кэш bounty bitcoin bye bitcoin bitcoin автосборщик
ethereum игра
bitcoin rt From a market efficiency standpoint, if these companies are earning billions of dollars a year for providing a service which can be done for free, then if that service catches on, humanity will be billions of dollars per year richer. It will require fewer resources to move money, and thus fewer resources will be consumed, making humanity wealthier. Cars made humanity richer by enabling transportation at lower cost, Email made humanity richer by enabling communication at lower cost, and in the exact same way Bitcoin can make the world richer by enabling monetary transfers at lower cost.monero новости people bitcoin форки ethereum bittorrent bitcoin bitcoin openssl lite bitcoin обмен tether
пул monero goldsday bitcoin enterprise ethereum bitcoin yen bitcoin оплатить купить monero bitcoin lucky ethereum parity покупка bitcoin консультации bitcoin майнеры monero bitcoin microsoft подтверждение bitcoin bitcoin фарминг bitcoin payment tether обзор ethereum видеокарты alliance bitcoin alpari bitcoin bitcoin bcc ethereum получить monero майнить
1070 ethereum ethereum рост earn bitcoin bitcoin продам бесплатно bitcoin bitcoin virus bitcoin torrent халява bitcoin rbc bitcoin bitcoin история stock bitcoin
bitcoin rus bitcoin film bitcoin jp
minergate ethereum bitcoin мониторинг вирус bitcoin ethereum ротаторы
форки ethereum bitcoin world криптовалюта monero bear bitcoin bitcoin pdf
cryptocurrency law bitcoin автоматически bitcoin автосборщик ad bitcoin вывод ethereum терминалы bitcoin куплю bitcoin
bitcoin landing wmx bitcoin bitcoin oil bitcoin 2018 bitcoin лохотрон hashrate bitcoin bitcoin department ethereum проблемы pos ethereum dark bitcoin solo bitcoin bitcoin online ethereum cryptocurrency bitcoin 2010 machines bitcoin alipay bitcoin bitcoin bitrix bitcoin 4000 bitcoin tor bitcoin daemon bitcoin eth bitcoin address
bitcoin car bitcoin airbit monero asic json bitcoin bitcoin spend game bitcoin bitcoin magazine bitcoin school
обменять monero bitcoin euro mastering bitcoin bitcoin trojan account bitcoin ethereum complexity tether usb ethereum debian часы bitcoin
bitcoin php bitcoin краны виталик ethereum bitcoin машины bitcoin fees fpga ethereum хешрейт ethereum blue bitcoin monero обменник ethereum создатель bitcoin dogecoin bitcoin dance shot bitcoin bitcoin favicon bitcoin фарм se*****256k1 ethereum And its supply is relatively steady and predictablebestchange bitcoin Blockchain Certification Training Coursebitcoin check qiwi bitcoin киа bitcoin cryptocurrency charts monero gpu bitcoin prominer
monero minergate bitcoin payment apple bitcoin windows bitcoin
прогноз bitcoin 33 bitcoin bitcoin convert ethereum alliance bitcoin 100 alpha bitcoin bitcoin страна
server bitcoin nanopool ethereum bitcoin genesis bitcoin ваучер bitcoin plugin робот bitcoin coins bitcoin blogspot bitcoin monero обмен калькулятор bitcoin vip bitcoin
bitcoin рублей service bitcoin bitcoin farm цена ethereum генераторы bitcoin charts bitcoin bitcoin journal kaspersky bitcoin bitcoin greenaddress bitcoin world bitcoin png
bitcoin сколько cryptonight monero monero client
boxbit bitcoin payeer bitcoin bitcoin ticker bitcoin purse
bitcoin bonus
avto bitcoin token ethereum bitfenix bitcoin пример bitcoin сбербанк bitcoin monero ann bitcoin hardfork
bitcoin fpga Even if this was possible (which it isn’t, really), the hacker would only be able to make changes to the blockchain for 1 block, which in the case of Bitcoin, would be about 10 minutes!ethereum swarm cryptocurrency trading Monero is electronic cash that allows fast, inexpensive payments to and from anywhere in the world.Know About Bitcoinbitcoin проект monero logo us bitcoin monero *****uminer double bitcoin bitcoin uk
бесплатно bitcoin decred cryptocurrency How do you store cryptocurrency?Load up the mining profitability calculator.For miners and enthusiasts though, litecoin holds a much more important difference to bitcoin, and that is its different proof of work algorithm. Bitcoin uses the SHA-256 hashing algorithm, which involves calculations that can be greatly accelerated in parallel processing. It is this characteristic that has given rise to the intense race in ASIC technology, and has caused an exponential increase in bitcoin’s difficulty level.cryptocurrency law bitcoin падение flappy bitcoin money bitcoin bitcoin books
click bitcoin
адреса bitcoin second bitcoin stake bitcoin ethereum клиент bitcoin novosti x bitcoin tether пополнить
blender bitcoin эмиссия ethereum bitcoin png проверка bitcoin bitcoin блог куплю bitcoin сложность monero bitcoin cap bitcoin майнить hashrate bitcoin настройка monero bitcoin tor основатель bitcoin bitcoin авито platinum bitcoin monero bitcointalk bitcoin пополнить
mindgate bitcoin
bitcoin dynamics bitcoin go cryptocurrency nem bitcoin fpga майнер monero carding bitcoin bitcoin вебмани monero dwarfpool 3 bitcoin
дешевеет bitcoin
monero github
