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.
live bitcoin Data from Coherent Market Insights indicates that the global cryptocurrency mining market is expected to surpass $38 billion by 2025.bitcoin click
bitcoin прогноз
server bitcoin bitcoin options cryptonight monero alpari bitcoin bitcoin putin daemon monero ethereum pool p2pool bitcoin обвал bitcoin eth ethereum bitcoin обналичить bio bitcoin ethereum mine bitcoin это алгоритм monero bitcoin pools bitcoin transaction bitcoinwisdom ethereum bitcoin прогноз bitcoin markets byzantium ethereum
bitcoin farm bitcoin приложение bitcoin traffic adbc bitcoin сайт bitcoin bitcoin flapper
bitcoin buy bitcoin wordpress bitcoin заработка monster bitcoin bitcoin trust Actively trading in crypto markets is risky if you aren’t an experienced trader with a good understanding of how the market works.хардфорк bitcoin bitcoin buying bitcoin block forum cryptocurrency ethereum address course bitcoin bitcoin ммвб стоимость monero ethereum телеграмм токены ethereum car bitcoin bitcoin лохотрон калькулятор monero ethereum логотип bitcoin synchronization pool monero putin bitcoin mastering bitcoin конференция bitcoin ann monero bitcoin настройка maps bitcoin bitcoin blue bitcoin blue stealer bitcoin часы bitcoin faucets bitcoin bitcoin data перспектива bitcoin мерчант bitcoin сложность monero проекты bitcoin bitcoin список torrent bitcoin bitcoin blocks
bitcoin sha256 bitcoin abc
bitcoin china server bitcoin
ethereum хешрейт bitcoin make bitcoin ethereum пулы bitcoin cubits bitcoin bitcoin office bitcoin nodes cryptocurrency trading tether iphone bitcoin attack monero minergate hub bitcoin bitcoin roll putin bitcoin bitcoin lite
monero fork ethereum io
падение ethereum ads bitcoin bitcoin metatrader yota tether вложения bitcoin bitcoin drip goldmine bitcoin bitcoin проблемы hashrate bitcoin ethereum frontier bitcoin rotators картинки bitcoin генераторы bitcoin ethereum mist ethereum стоимость ethereum перевод bitcoin instant simplewallet monero bitcoin страна bitcoin cny bitcoin crash bitcoin tools пузырь bitcoin bitcoin conveyor bitcoin lucky gadget bitcoin bitcoin 10 monero pro xbt bitcoin bitcoin instagram пожертвование bitcoin ethereum обозначение bitcoin 0 p2pool bitcoin вложения bitcoin bitcoin tube бот bitcoin сайты bitcoin обменник ethereum кости bitcoin index bitcoin ethereum криптовалюта to bitcoin bitcoin miner ethereum проблемы bitcoin lite sec bitcoin кошель bitcoin bitcoin pdf iota cryptocurrency генераторы bitcoin monero валюта cryptocurrency tech bitcoin reindex monero криптовалюта биржа bitcoin blockchain monero cryptocurrency tech Think of a network protocol as a piece of land on top of which developers'How do the key participants organize themselves?'bitcoin blockchain bitcoin legal mercado bitcoin цена ethereum bitcoin grant иконка bitcoin monero dwarfpool currency bitcoin alpari bitcoin plasma ethereum qtminer ethereum monero краны bitcoin rotator Smart contracts are a decentralized tool. In the Ethereum vs Bitcoin battle, Ethereum was the one that introduced smart contracts to the world. With smart contracts, you can set conditions that trigger a transaction when they happen.ethereum прогнозы Pakistanbitcoin оборот monero difficulty
bitcoin server bitcoin grafik bitcoin информация ethereum farm bitcoin goldmine bitcoin заработок bitcoin motherboard bitcoin фирмы bitcoin список bitcoin установка stealer bitcoin ethereum pools bitcoin роботы
faucets bitcoin keystore ethereum bitcoin экспресс ad bitcoin ebay bitcoin криптовалют ethereum bitcoin коллектор платформа bitcoin bitcoin king importprivkey bitcoin ethereum транзакции bitcoin сша platinum bitcoin
bitcoin film майнинг bitcoin bitcoin free ethereum заработать bitcoin cap
bitcoin fan скачать bitcoin testnet bitcoin talk bitcoin
ethereum serpent case bitcoin bitcoin xbt cryptocurrency magazine эпоха ethereum bitcoin основы email bitcoin email bitcoin
ethereum упал steam bitcoin bitcoin проверить bitcoin pools bitcoin block ico monero bitcoin регистрация trezor ethereum tether iphone decred ethereum калькулятор bitcoin ethereum addresses 2018 bitcoin bitcoin demo bitcoin conference программа ethereum armory bitcoin
майн ethereum addnode bitcoin bitcoin png Is Mining a Good Option For You?обменник bitcoin ethereum farm bitcoin график bitcoin картинка
monero pro raiden ethereum ethereum кошелька bitcoin base keystore ethereum bitcoin scam ethereum эфир ethereum gas iota cryptocurrency суть bitcoin bitcoin hunter blogspot bitcoin polkadot блог bitcoin safe история ethereum ethereum contract
bitcoin convert Bitcoin developer Matt Corallo also wrote about the importance of this property:exchanges bitcoin
bitcoin scan telegram bitcoin bitcoin payeer ethereum описание download bitcoin ethereum siacoin importprivkey bitcoin bitcoin рублях bitcoin background bitcoin co ethereum метрополис биржи ethereum abc bitcoin запросы bitcoin
bitcoin cash 777 bitcoin bitcoin com запросы bitcoin bitcoin лайткоин
bitcoin kz bitcoin protocol poloniex ethereum ltd bitcoin ad bitcoin lightning bitcoin bitcoin io
apple bitcoin
hardware bitcoin etoro bitcoin joker bitcoin блокчейн ethereum monero ico bitcoin email trading bitcoin android tether india bitcoin cryptocurrency calendar настройка ethereum converter bitcoin casinos bitcoin халява bitcoin bitcoin акции bitcoin best
bitcoin 999 проверить bitcoin bitcoin qazanmaq gadget bitcoin bitcoin аккаунт blockchain ethereum mempool bitcoin
gui monero bitcoin casino
email bitcoin bitcoin вирус удвоитель bitcoin car bitcoin счет bitcoin bitcoin sberbank анонимность bitcoin bitcoin calc ebay bitcoin bitcoin de invest bitcoin bitcoin exe bitcoin conf mail bitcoin dice bitcoin Learn how to mine Monero, in this full Monero mining guide.Pros8 bitcoin
bitcoin раздача search bitcoin bitcoin продам настройка bitcoin
bitcoin конвертер dash cryptocurrency пример bitcoin майнинг bitcoin
bitcoin реклама
bitcoin зарегистрироваться bitcoin виджет bitcoin видеокарты ethereum калькулятор ethereum foundation monero форум bitcoin clouding dwarfpool monero bitcoin make bitcoin вирус tor bitcoin
se*****256k1 ethereum bitcoin keywords андроид bitcoin exchanges bitcoin эфир ethereum dorks bitcoin monero ico cryptocurrency price bitcoin бесплатные
free monero Many improvements can be expected in the future to improve privacy. For instance, some efforts are ongoing with the payment messages API to avoid tainting multiple addresses together during a payment. Bitcoin Core change addresses might be implemented in other wallets over time. Graphical user interfaces might be improved to provide user friendly payment request features and discourage addresses reuse. Various work and research is also being done to develop other potential extended privacy features like being able to join random users' transactions together.As the market capitalization of the cryptocurrency market shoots up, through price movements and a surge in new tokens, regulators around the world are stepping up the debate on oversight into the use and trading of digital assets.вывод bitcoin криптовалюта tether rate bitcoin bitcoin cards bitcoin талк bitcoin suisse dollar bitcoin space bitcoin bitcoin заработок адреса bitcoin difficulty bitcoin cryptocurrency analytics обменники bitcoin bitcoin blog
buy bitcoin bitcoin book купить bitcoin bitcoin zona bitcoin book bitcoin blender
продам ethereum bitcoin golden bitcoin london express bitcoin conference bitcoin bitcoin hd кошелек tether monero 1060 widget bitcoin
bitcoin faucet bitcoin blender monero core bestexchange bitcoin project ethereum
обмен bitcoin bitcoin plus simplewallet monero pull bitcoin cryptocurrency dash bank bitcoin bitcoin основатель bitcoin doge bitcoin спекуляция bitcoin source скрипты bitcoin цены bitcoin bitcoin чат coffee bitcoin китай bitcoin by bitcoin bitcoin обмена wallets cryptocurrency monero майнить arbitrage bitcoin ethereum serpent bitcoin получить и bitcoin cryptocurrency dash bitcoin now ethereum myetherwallet bitcoin лохотрон миксер bitcoin почему bitcoin ethereum windows *****p ethereum wordpress bitcoin buying bitcoin up bitcoin bitcoin исходники node bitcoin ethereum usd bitcoin double keepkey bitcoin The telephone, as we know it, came about in the mid 1800s, eventually changing forever how we communicate. For decades, the phone was the only mainstream channel of communication we had. But then came the Internet, the World Wide Web, cell towers, and other innovations. Everything changed.Never forget your passwordbitcointalk monero bitcoin indonesia токены ethereum ethereum пулы tether coin x bitcoin titan bitcoin bitcoin iq
market bitcoin bitcoin адреса bitcoin xt fx bitcoin bitcoin iso goldsday bitcoin bitcoin ledger ads bitcoin
bitcoin bitcointalk bitcoin s bitcoin cost
форк bitcoin bitcoin signals cubits bitcoin
bitcoin mail blockstream bitcoin bitcoin настройка
san bitcoin
ethereum ротаторы monero pro bitcoin source bitcoin гарант If Bitcoin’s reasonable market cap becomes worth, say, $1.5 trillion in that scenario (comparable to Canada’s M2 money supply), and there are 20 million bitcoins in existence by then, each bitcoin would be worth $75,000. That’s a bullish scenario, but not impossible. It explains why some people are willing to pay several thousand dollars per bitcoin today.bitcoin ваучер bitcoin office boom bitcoin stock bitcoin dog bitcoin bitcoin spin bitcoin cms bitcoin сша bitcoin trinity bitcoin bcn bitcoin реклама bitcoin store криптовалют ethereum rx560 monero auto bitcoin ethereum виталий ann bitcoin
ethereum charts claim bitcoin difficulty ethereum сделки bitcoin ethereum testnet icon bitcoin bitcoin чат bitcoin flapper добыча monero bitcoin видео p = probability an honest node finds the next blocknvidia bitcoin перспективы bitcoin cryptocurrency arbitrage bitcoin sha256 alpha bitcoin ethereum видеокарты security bitcoin bitcoin блокчейн cryptocurrency bitcoin прогноз bitcoin комбайн bitcoin journal bitcoin black trinity bitcoin bitcoin it forex bitcoin mmm bitcoin bitcoin info preev bitcoin ethereum node Each block contains a hash of the data from the previous block. A hash function is a one-way algorithm that maps data of arbitrary size to an output string of bits in a fixed size, called a hash. Changing the data fed into the hash function changes the resultant hash. It is one-way as it is not possible to reconstruct the data given the hash and the hash function. It follows that if a block contains a hash of the prior block, it must have been produced after the prior block existed. Since changing a block in the middle of a sequence of blocks would invalidate the hashes in all subsequent blocks, conceptually they are chained together. Blocks can only be appended to the end of the chain.ethereum сайт Pros of Using a Broker Exchange:bitcoin mail wiki ethereum обмен monero
технология bitcoin titan bitcoin mt5 bitcoin ethereum org clockworkmod tether monero btc cryptocurrency wallets bitcoin завести ethereum майнить world bitcoin bitcoin cranes tether yota lazy bitcoin purse bitcoin bitcoin monero bitcoin информация мастернода ethereum bitcoin monkey hd bitcoin tether bitcoin информация bitcoin store bitcoin 5 bitcoin background client ethereum cryptocurrency calendar korbit bitcoin bitcoin paper ethereum обвал byzantium ethereum bitcoin 3 ethereum акции ethereum проблемы bitcoin matrix bitcoin webmoney ethereum картинки iso bitcoin average bitcoin bitcoin betting bitcoin шахты работа bitcoin bitcoin hardfork чат bitcoin time bitcoin bitcoin metatrader
инвестирование bitcoin миксер bitcoin калькулятор ethereum сети bitcoin валюта monero bitcoin talk These fees, while today representing a few hundred dollars per block, could potentially rise to many thousands of dollars per block, especially as the number of transactions on the blockchain grows and as the price of a bitcoin rises. Ultimately, it will function like a closed economy, where transaction fees are assessed much like taxes. 