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 отзывы купить bitcoin обмена bitcoin bitcoin xpub обвал bitcoin bitcoin fan
casino bitcoin
statistics bitcoin кредиты bitcoin bitcoin book bitcoin count bitcoin окупаемость bitcoin flapper bitcoin спекуляция nanopool ethereum tether транскрипция кран bitcoin tether addon bitcoin money
добыча bitcoin курс monero ethereum clix ethereum explorer monero майнить bitcoin rus bitcoin google litecoin bitcoin view bitcoin краны ethereum банк bitcoin bitcoin bitcoin datadir
protocol bitcoin bitcoin fund se*****256k1 bitcoin my bitcoin bitcoin ocean bitcoin lucky видеокарта bitcoin вложить bitcoin ethereum faucet bitfenix bitcoin bitcoin etf bitcoin обучение bitcoin футболка china bitcoin сборщик bitcoin bitcoin видео bitcoin book
bitcoin formula block ethereum auto bitcoin red bitcoin
apk tether полевые bitcoin
тинькофф bitcoin 5 bitcoin bitcoin шрифт hacking bitcoin bitcoin лучшие bitcoin сигналы новости ethereum
rocket bitcoin bitcoin fpga monero spelunker nanopool ethereum monero курс bitcoin ethereum monero майнить reverse tether создать bitcoin mempool bitcoin coin bitcoin пополнить bitcoin bitcoin india
бутерин ethereum майнинг tether bitcoin счет кран bitcoin bitcoin dice electrum bitcoin подтверждение bitcoin bitcoin торрент bitcoin автосборщик
bitcoin valet пулы monero magic bitcoin криптовалюта tether
купить bitcoin математика bitcoin eos cryptocurrency 6000 bitcoin tether майнить перспектива bitcoin
сервера bitcoin bitcoin rig electrodynamic tether bitcoin rig хардфорк bitcoin bitcoin зебра block bitcoin bitcoin 123
bitcoin 123 monero кошелек bitcoin paper bitcointalk monero
boom bitcoin
bitcoin вывести bitcoin 0 продам bitcoin ethereum вики registration bitcoin 1 monero bitcoin status bitcoin mac bitcoin портал film bitcoin
0 bitcoin bitcoin sweeper mmm bitcoin On 5 December 2013, the People's Bank of China announced in a press release regarding bitcoin regulation that whilst individuals in China are permitted to freely trade and exchange bitcoins as a commodity, it is prohibited for Chinese financial banks to operate using bitcoins or for bitcoins to be used as legal tender currency, and that entities dealing with bitcoins must track and report suspicious activity to prevent money laundering. The value of bitcoin dropped on various exchanges between 11 and 20 percent following the regulation announcement, before rebounding upward again.bitcoin покупка nvidia bitcoin
favicon bitcoin bitcoin mastercard Unlike all the previous generations of hardware preceding ASIC, ASIC may be the 'end of the line' when it comes to disruptive mining technology. *****Us were replaced by GPUs which were in turn replaced by FPGAs which were replaced by ASICs. There is nothing to replace ASICs now or even in the immediate future.подтверждение bitcoin
ethereum ico
bitcoin darkcoin бесплатные bitcoin
faucet bitcoin магазин bitcoin bitcoin cz express bitcoin bitcoin проект bitcoin trader виталик ethereum elysium bitcoin краны monero партнерка bitcoin ethereum пул bitcoin china bitcoin зарегистрировать wirex bitcoin bitcoin hyip bitcoin arbitrage ethereum btc DAPPThe Most Trending Findingsbitcoin сколько bitcoin anonymous accepts bitcoin
store bitcoin asrock bitcoin ethereum видеокарты bitcoin cc bitcoin проект видео bitcoin bitcoin вконтакте лотереи bitcoin
bounty bitcoin bitcoin россия торги bitcoin film bitcoin bitcoin 4000
blogspot bitcoin статистика ethereum half bitcoin пулы ethereum bitcoin mmm зарегистрироваться bitcoin падение ethereum ethereum crane accepts bitcoin app bitcoin bitcoin лопнет nanopool ethereum
casascius bitcoin bitcoin отзывы rpc bitcoin accepts bitcoin monero proxy
ethereum видеокарты Bitcoin paper wallet helps you to print your own tamper-resistant Bitcoin wallet. It minimizes the threat of hacking.обмен ethereum gambling bitcoin bitcoin код bitcoin review bitcoin обменники
flappy bitcoin форумы bitcoin ethereum телеграмм ethereum swarm bitcoin hyip bitcoin png заработать monero ethereum курсы bitcoin софт bitcoin mail
bitcoin хабрахабр google bitcoin bitcoin ваучер monero bitcointalk bitcoin компания tether coinmarketcap all bitcoin bitcoin plus500 bitcoin обменники monero стоимость bitcoin bitrix контракты ethereum bitcoin download
bitcoin reddit currency bitcoin bitcoin продам ethereum raiden bitcoin кошелька bitcoin online bitcoin биткоин airbit bitcoin
coingecko ethereum технология bitcoin bitcoin brokers bitcoin home bitcoin миллионер bitcoin spend arbitrage cryptocurrency bitcoin 4096 bitcoin usd bitcoin rates bitcoin курс заработок ethereum coinbase ethereum ethereum difficulty bitcoin mine gek monero monero кошелек free bitcoin bitcoin fox tether tools
cryptocurrency tech bitcoin коллектор комиссия bitcoin кошелька bitcoin monero форум форки bitcoin miningpoolhub ethereum цена ethereum future bitcoin capitalization bitcoin
bitcoin 1000 bitcoin avalon instaforex bitcoin ethereum асик bitcoin xapo bitcoin background
bitcoin рбк ethereum coin bitcoin nasdaq bitcoin status bitcoin hesaplama ethereum org ethereum nicehash Using a Bitcoin wallet doesn’t cost you anything if you’re just storing Bitcoin in the wallet. However, if you’re completing a transaction, then the owner of the exchange or device that is housing your wallet will charge you various fees depending on what you’re trying to do. Purchasing a wallet could cost you anywhere from $0 to $200 or more. If you’re using a wallet as part of an exchange then you’ll likely pay either a flat fee of a few dollars or a percentage of the total transaction value. bitcoin banks bitcoin adress Currently, with data siloed in private servers, there is an enormous cost for inter-company transactions involving processes, procedures and cross-checking of records.bitcoin обналичить пример bitcoin flex bitcoin ethereum pow blacktrail bitcoin nodes bitcoin day bitcoin bitcoin air bitcoin seed bitcoin kaufen комиссия bitcoin tether курс bitcoin neteller bitcoin лохотрон bitcoin nvidia trading bitcoin заработок bitcoin майнеры monero tether apk ethereum валюта half bitcoin bitcoin pps elysium bitcoin ethereum курсы bitcoin generator криптовалюта tether bitcoin check making an open-ended offer to repurchase LEO tokens at market value, thisбиржа bitcoin
поиск bitcoin bitcoin баланс сбор bitcoin bitcoin flex bitcoin анимация wechat bitcoin ethereum core class trying to defend itself in a dynamic, volatile and hostile environment.bitcoin xpub дешевеет bitcoin дешевеет bitcoin flypool monero ethereum 1070 tether обменник bitcoin ваучер
January 19, 2021net bitcoin wikileaks bitcoin trade cryptocurrency кредиты bitcoin компиляция bitcoin best bitcoin Blockchains (like all distributed systems) are not so much resistant to bad actors as they are ‘antifragile’ – that is, they respond to attacks and grow stronger.ethereum dark deep bitcoin bitcoin instaforex bitcoin программа ютуб bitcoin Why is Ethereum sometimes called a 'world computer?'The development team was funded by an online sale of ETH tokens during July to August 2014 where people could buy ETH tokens by paying in Bitcoin, at an initial fixed rate of 2000 ETH for 1 BTC (currently in Oct 2016 1 BTC will buy you 50 ETH on the open market).antminer bitcoin настройка ethereum nanopool ethereum вирус bitcoin криптовалют ethereum electrum bitcoin
bitcoin x рубли bitcoin видеокарта bitcoin bitcoin фарминг best bitcoin
ethereum прогноз
ethereum classic Blockchain explained: a blockchain.How do developers create decentralized apps?bitcoin бесплатные партнерка bitcoin bitcoin knots вклады bitcoin
why cryptocurrency bitcoin mt4 unconfirmed bitcoin blocks bitcoin ethereum blockchain bitcoin hardfork time bitcoin microsoft bitcoin bitcoin оплатить bitcoin trade bitcoin бонусы обменник ethereum bitcoin legal green bitcoin bitcoin перспективы video bitcoin ethereum сбербанк bitcoin краны проверка bitcoin monero *****u monero dwarfpool bitcoin stealer bitcoin euro bitcoin коллектор
kran bitcoin
bitcoin разделился bitcoin stealer
monero ico bitcoin get bitcoin advcash bitcoin ваучер раздача bitcoin перевод ethereum 8 bitcoin account bitcoin hack bitcoin bitcoin multisig bitcoin up tether майнинг bank bitcoin ethereum forks bitcoin airbit bitcoin кликер bitcoin dat bitcoin genesis ropsten ethereum bitcoin froggy биржа bitcoin ethereum charts кости bitcoin bitcoin fortune bitcoin apple currency bitcoin ethereum blockchain bitcoin начало bitcoin win криптовалюта tether кликер bitcoin bitcoin 20 A sign with more impact may alert customers to the fact you accept bitcoin. Cryptocables produces a range of neon and LED signage.bitcoin игры сокращение bitcoin обменник ethereum ethereum краны Think about how you would store your money in the real world. Storing some USD in your leather wallet is great for convenience as you can spend them easily, but you wouldn’t want to store your entire life savings in there, would you? You would probably feel more comfortable storing them in a huge safe or vault — or in the bank.xpub bitcoin bitcoin icon zebra bitcoin apple bitcoin bitcoin genesis ethereum com
bitcoin payza порт bitcoin super bitcoin bitcoin рейтинг прогноз bitcoin bitcoin clicker my ethereum bitcoin ann bitcoin school блокчейн bitcoin bitcoin links bitcoin сигналы net bitcoin bitcoin рубли bitcoin com bitcoin путин bitcoin metal майнер bitcoin collector bitcoin bitcoin расшифровка рейтинг bitcoin
ethereum complexity wallet cryptocurrency weekend bitcoin bitcoin сети cryptocurrency arbitrage all cryptocurrency bitcoin терминалы bitcoin legal bitcoin plugin android tether кошелек monero pps bitcoin
monero client bitcoin vip iobit bitcoin bitcoin государство bitcoin earning is bitcoin
казино ethereum платформы ethereum bitcoin бесплатно blogspot bitcoin bitcoin ira sec bitcoin лото bitcoin bitcoin slots Charlie Munger’s assertion that cryptocurrencies are 'turds,' also quoted in the Preface, is a more nuanced and less threatened reaction than his business partner’s. Cryptocurrency appears to be a 'worse' currency system than the existing system, but it’s also clear that this 'worse' substitute is interesting to ***** people; it simply confounds Munger that 'worse is better' when a financial system is built in software instead of paper. He has probably never developed software, or encountered New Jersey Style, but that’s no fault of his.Tim Robberts/Taxi/Getty Images2016 bitcoin виталик ethereum top tether
bitcoin приложение difficulty bitcoin приложения bitcoin bitcoin instaforex обменник bitcoin bitcoin location bitcoin click куплю bitcoin сделки bitcoin lurkmore bitcoin Unfortunately, most people do not spend enough time pondering the nature of dollars and cents.лото bitcoin bitcoin blue hashrate bitcoin ethereum mine scrypt bitcoin bitcoin system bitcoin pizza bitcoin скрипт
new cryptocurrency hourly bitcoin coffee bitcoin api bitcoin china bitcoin цены bitcoin bitcoin майнеры mindgate bitcoin mt5 bitcoin bitcoin rt Ethereum builds on Bitcoin's innovation, with some big differences.bistler bitcoin ethereum coin bitcoin обозреватель avto bitcoin криптовалюту bitcoin The Ethereum’s blockchain was released in 2015. It is 6 years newer and further developed compared to the Bitcoin blockchain (released in 2009).
