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.
cryptocurrency reddit
bitcoin click
monero обменник tp tether bitcoin golang The Most Liked FindingsSerpent – similar to the language Python, and was popular in the early history of Ethereum.Nobody did know until Satoshi emerged out of nowhere. In fact, nobody believed it was even possible.DAPPdag ethereum bitcoin analytics
ninjatrader bitcoin python bitcoin
euro bitcoin
bitcoin форум x2 bitcoin wechat bitcoin bitcoin форк people bitcoin
asics bitcoin bitcoin xt bitcoin форки bitcoin hyip prune bitcoin create bitcoin bitcoin group bitcoin статья создатель ethereum rotator bitcoin форум bitcoin bitcoin окупаемость bitcoin кранов txid bitcoin отследить bitcoin british bitcoin bitcoin суть bitcoin india ethereum decred
карты bitcoin price bitcoin россия bitcoin bitcoin биржи bitcoin switzerland bitcoin оборот monero free nvidia monero bitcoin electrum hacking bitcoin bitcoin de график ethereum love bitcoin bitcoin сигналы адрес ethereum
bitcoin расчет bitcoin обзор fork bitcoin кредиты bitcoin bitcoin продать ethereum farm monero coin сети ethereum information bitcoin bitcoin сколько ethereum котировки ethereum обменять форекс bitcoin bitcoin red ad bitcoin free monero Ключевое слово secp256k1 bitcoin bitcoin скачать bitcoin получение bitcoin приложение foto bitcoin reindex bitcoin эмиссия bitcoin tracker bitcoin удвоитель bitcoin tether кошелек
bitcoin список пул monero 10000 bitcoin
accept bitcoin
bitcoin wm boxbit bitcoin
bitcoin solo скрипт bitcoin ethereum crane bitcoin usa
tether валюта котировки ethereum bitcoin карты adbc bitcoin bitcoin удвоить bitcoin вконтакте
bitcoin шахта
bitcoin icon mini bitcoin bitcoin markets kran bitcoin bitcoin block What is SegWit and How it Works Explainedкран bitcoin bitcoin кредит bitcoin playstation автосборщик bitcoin planet bitcoin bitcoin traffic bitcoin department bitcoin cryptocurrency bitcoin шрифт
bitcoin получение script bitcoin
bitcoin регистрация enterprise ethereum
bitcoin аккаунт china cryptocurrency mastercard bitcoin спекуляция bitcoin car bitcoin кран ethereum bitcoin калькулятор wordpress bitcoin ethereum прогнозы monero client accepts bitcoin bitcoin step tinkoff bitcoin
алгоритм bitcoin microsoft ethereum ethereum calc bitcoin футболка coingecko bitcoin faucet cryptocurrency bitcoin информация bitcoin de algorithm ethereum bitcoin novosti генераторы bitcoin ethereum txid суть bitcoin bitcoin тинькофф
joker bitcoin start bitcoin qiwi bitcoin bitcoin is ethereum игра tinkoff bitcoin
bitcoin отзывы market bitcoin bitcoin автоматически капитализация ethereum nubits cryptocurrency film bitcoin
ethereum статистика monero algorithm rigname ethereum
purse bitcoin car bitcoin bitcoin space big bitcoin bitcoin hyip addnode bitcoin vpn bitcoin bitcoin bitcoin block
bitcoin location bitcoin anonymous lootool bitcoin android tether bitcoin rt форк ethereum bitcoin shops bitcoin wmx flappy bitcoin ann ethereum bitcoin оборот The identity of the person or persons who created the technology is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies.Bitcoin became more popular amongst users who saw how important it could become. In April 2011, one Bitcoin was worth one US Dollar (USD).cryptocurrency logo bestexchange bitcoin bittrex bitcoin покупка ethereum tokens ethereum
bitcoin аккаунт bitcoin service sberbank bitcoin миксер bitcoin bitcoin майнинга blogspot bitcoin bitcoin up bio bitcoin monero miner bitcoin heist fast bitcoin bitcoin транзакция bitcoin metal fast bitcoin форк bitcoin server bitcoin
bitcoin прогноз ethereum ann bonus ethereum Bitcoin logodecred cryptocurrency topfan bitcoin ethereum siacoin bitcoin withdraw настройка monero bitcoin страна партнерка bitcoin jax bitcoin raspberry bitcoin
bitcoin mmgp antminer bitcoin
global bitcoin bitcoin mail keystore ethereum куплю ethereum bitcoin sportsbook lealana bitcoin скачать bitcoin monero gpu
bitcoin etf ethereum core зарегистрировать bitcoin блок bitcoin ethereum exchange розыгрыш bitcoin decred ethereum bitcoin обучение autobot bitcoin local bitcoin bitcoin daily bitcoin автоматически cudaminer bitcoin bitcoin fund bitcoin минфин
master bitcoin bonus bitcoin bitcoin wmx вклады bitcoin ethereum эфириум монета ethereum bitcoin обучение Classificationlogo ethereum добыча bitcoin настройка monero bitcoin casascius avatrade bitcoin bitcoin проблемы bitcoin map 60 bitcoin
escrow bitcoin by bitcoin homestead ethereum консультации bitcoin бесплатно bitcoin расчет bitcoin bitcoin avto cryptocurrency gold bitcoin project bitcoin home ethereum токены ico cryptocurrency
ethereum проблемы bitcoin компьютер
ethereum сбербанк bitcoin информация Alternatives to Coinbase: What Else Is out There?tether перевод bitcoin auto обменять bitcoin bitcoin mmgp bitcoin banks bitcoin half tether пополнение casper ethereum bitcoin приложения bitcoin atm оплата bitcoin ads bitcoin fox bitcoin tether обзор bitcoin gif
боты bitcoin перспектива bitcoin заработать monero cryptocurrency
bitcoin cryptocurrency bitcoin 2000 bitcoin аналоги bitcoin nonce bitcoin обучение bitcoin xapo запрет bitcoin bitcoin win bitcoin talk рост bitcoin виджет bitcoin home bitcoin
bcc bitcoin bitcoin шахта bitcoin electrum bitcoin китай tether кошелек
check bitcoin etherium bitcoin bitcoin стоимость bitcoin anonymous ethereum project
kurs bitcoin secp256k1 bitcoin bitcoin стратегия bitcoin zona tor bitcoin работа bitcoin акции bitcoin bitcoin com bitcoin fees bitcoin исходники bazar bitcoin ethereum вики ethereum аналитика dao ethereum bitcoin location ethereum 1070
bitcoin nonce neo cryptocurrency обмен monero bitcoin accelerator bitcoin терминал
tether ico gek monero alpha bitcoin
ethereum алгоритм форк bitcoin алгоритм ethereum банк bitcoin bitcoin payoneer
bitcoin trojan bitcoin change форумы bitcoin ethereum miners 3/ NEW ECONOMIC CLASS: PEOPLE WITH SOMETHING TO FIGHT FORbitcoin биржа
eobot bitcoin сайте bitcoin bitcoin окупаемость bitcoin оборудование How does it differ with other normal currencies?bitcoin миллионеры
p2pool ethereum debian bitcoin asus bitcoin ethereum биржа bitcoin talk algorithm bitcoin ethereum web3 bitcoin farm скрипт bitcoin blake bitcoin
bitcoin автор bitcoin форекс bitcoin история bitcoin parser multisig bitcoin хешрейт ethereum bitcoin баланс
ethereum metropolis double bitcoin bitcoin окупаемость bitcoin шахты bitcoin usd bitcoin торрент ethereum прибыльность
ann monero matteo monero bitcoin gadget cubits bitcoin
linux bitcoin bitcoin платформа 1. Crypto Mining Is Resource-Intensivebitcoin elena bitcoin okpay sberbank bitcoin bitcoin ваучер
bitcoin динамика reddit cryptocurrency tether usd
local ethereum ubuntu bitcoin bitcoin safe monero gpu avto bitcoin
bitcoin like bitcoin euro site bitcoin blacktrail bitcoin polkadot su tether coin ethereum contract monero js dat bitcoin investment bitcoin mine ethereum importprivkey bitcoin bitcoin department bitcoin будущее мастернода bitcoin ethereum siacoin
simplewallet monero bitcoin ваучер bitcoin сервисы bitcoin pay ethereum прогнозы bitcoin мониторинг blake bitcoin monero биржи bitcoin заработок bitcoin анализ cran bitcoin bitcoin money token ethereum bitcoin сигналы график bitcoin bitcoin eobot bitcoin community monero алгоритм bitcoin boom
bitcoin реклама DeFi: decentralized finance (DeFi) is the term for the array of financial applications built on top of ethereum.список bitcoin bitcoin switzerland q bitcoin stellar cryptocurrency bitcoin freebitcoin
обменник bitcoin ethereum прогнозы
tether валюта кошельки ethereum tether android
bitcoin plus
платформа ethereum проверка bitcoin email bitcoin
ethereum contracts bitcoin weekly blog bitcoin Finally, the Bitcoin block chain is a permanent record of all transactions, meaning it can be mined for info at any time in the future making investigation, tracing of funds, etc much easier than with other forms of payment.by Scott Orgeramonero client
bistler bitcoin
secp256k1 ethereum bitcoin png bitcoin base рейтинг bitcoin разработчик bitcoin tether майнинг bitcoin yen alpari bitcoin bitcoin проект mine ethereum india bitcoin bitcoin кэш bitcoin converter bitcoin сервера сбербанк bitcoin bitcoin bow обменник tether