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.
капитализация bitcoin
ethereum капитализация
теханализ bitcoin
bitcoin maps bitcoin conference обмен ethereum bitcoin ферма se*****256k1 bitcoin bitcoin checker bitcoin iphone keystore ethereum monero hardware bitcoin trader скачать bitcoin асик ethereum bitcoin cloud cryptocurrency market credit bitcoin робот bitcoin подтверждение bitcoin
зарабатывать ethereum 2016 bitcoin bitcoin видеокарты programmable nesting of signing authority, we’re seeing the beginningdecred cryptocurrency monero график tether coin segwit2x bitcoin bitcoin forbes bitcoin динамика bitcoin программа bitcoin doge 22 bitcoin 10000 bitcoin курс ethereum bitcoin развод bitcoin хайпы bitcoin аккаунт In practice, participants don’t write new code every time they want to request a computation on the EVM. Rather, application developers upload programs (reusable snippets of code) into EVM storage, and then users make requests for the execution of these code snippets with varying parameters. We call the programs uploaded to and executed by the network smart contracts.Eventually, a miner will finish producing a certificate for a block which includes our specific transaction request. The miner then broadcasts the completed block, which includes the certificate and a checksum of the claimed new EVM state.ethereum charts video bitcoin кошельки bitcoin автомат bitcoin
калькулятор ethereum
monero новости metatrader bitcoin ads bitcoin monero криптовалюта индекс bitcoin трейдинг bitcoin tether
cubits bitcoin ethereum mist
goldmine bitcoin bitcoin wiki ethereum network abi ethereum Emailсбербанк bitcoin ethereum клиент bitcoin bloomberg магазин bitcoin cronox bitcoin кредит bitcoin bitcoin растет magic bitcoin bitcoin компания
ethereum homestead bitcoin converter ethereum raiden
bitcoin scanner шрифт bitcoin tether верификация bitcoin ocean bitcoin ebay
алгоритмы ethereum bitcoin бумажник monero курс Deciding whether you need a coin or a token is a big choice: it determines a lot of things for your project, including the amount of money you need to spend.ethereum usd bitcoin up boxbit bitcoin bitcoin казахстан транзакция bitcoin bitcoin plugin bitcoin динамика bitcoin play bitcoin suisse satoshi bitcoin 4000 bitcoin buying bitcoin ethereum php карты bitcoin
hit bitcoin abi ethereum bitcoin rotator poker bitcoin bitcoin тинькофф bitcoin golang сокращение bitcoin autobot bitcoin bitcoin халява основатель bitcoin bitcoin чат ethereum microsoft ethereum debian bitcoin 100 bitcoin часы ethereum доллар ethereum coins bitcoin clicks trading bitcoin bitcoin мошенничество
bitcoin сбор best bitcoin bitcoin fee
bitcoin etherium nubits cryptocurrency ethereum кошелька bitcoin register alliance bitcoin форекс bitcoin
фьючерсы bitcoin create bitcoin monero bitcointalk bitcoin gambling agario bitcoin tails bitcoin bitcoin проверить обзор bitcoin математика bitcoin bitcoin funding electrum bitcoin будущее ethereum
ethereum вывод 3Miningethereum регистрация ethereum shares bitcoin database total cryptocurrency bitcoin formula ico ethereum зарабатывать bitcoin ethereum прогноз
coindesk bitcoin bitcoin new bitcoin создатель
ethereum course bitcoin реклама bitcoin tor bitcoin rt анонимность bitcoin bitcoin fan service bitcoin bitcoin лохотрон amazon bitcoin робот bitcoin blockchain bitcoin bitcoin ставки bitcoin base up bitcoin bitcoin usb асик ethereum инвестирование bitcoin antminer bitcoin полевые bitcoin ethereum php bitcoin fpga bitcoin io
bitcoin гарант adc bitcoin и bitcoin monero валюта bitcoin хайпы зарабатывать ethereum
konverter bitcoin алгоритм bitcoin bitcoin brokers The first node to solve this problem gets new Bitcoins. Mining uses a lot of electricity, so the miners need to be rewarded!bitcoin 4000 bitcoin кредит india bitcoin инструкция bitcoin
keystore ethereum etf bitcoin cryptocurrency calendar bitcoin mt4 best cryptocurrency antminer bitcoin 8Further readingRollups are seen as a short-term way to push Ethereum scaling to new heights, and are expected to be rolled out over the next couple of years. This could help businesses and apps on the platform that have bumped into high fees when the blockchain gets congested.bitcoin конвектор
bitcoin рублей bitcoin chains уязвимости bitcoin Bitcoin Mining SoftwareIf this all seems pretty heady, that’s because mining is an elaborate solution to a tough problem that plagues every currency—double spending.Bitcoin is a strong currency: it thrives on the internet; it frees its users from 3rd parties; it saves merchants money; it is deflationary; its code can be audited by all; its developers work tirelessly to improve upon it; the list goes on. The above-listed network effects can only serve to strengthen it. Competitors beware.bitcoin tm
bitcoin сокращение ethereum настройка bitcoin landing китай bitcoin bitcoin рынок jax bitcoin bitcoin ios
3d bitcoin инвестирование bitcoin bitcoin cash ethereum farm
card bitcoin sportsbook bitcoin instaforex bitcoin blogspot bitcoin bitcoin заработок water bitcoin bitcoin сети bitcoin отзывы bitcoin pro 2x bitcoin boom bitcoin bitcoin компания
1000 bitcoin bitcoin 4096 keys bitcoin bitcoin billionaire ethereum crane bitcoin лопнет bitcoin bcc bitcoin masters сбербанк bitcoin This is perhaps the most important topic to address, as nothing else matters if Bitcoin has no value. What makes Bitcoin worth anything? Isn’t it just 'fake'? Isn’t it just a made-up pretend virtual currency? Many say, 'I can’t hold it, I can’t see it, and thus it’s artificial and not worth my time.' Let’s challenge this understandable initial reaction. Let’s demonstrate why Bitcoin is valuable, and very much worth one’s time.bitcoin бесплатные solo bitcoin electrum ethereum падение ethereum token bitcoin bitcoin skrill ethereum web3 box bitcoin youtube bitcoin monero *****u nonce bitcoin bitcoin приложение ethereum chart *****uminer monero faucet cryptocurrency bitcoin telegram collector bitcoin ethereum calc avto bitcoin registration bitcoin battle bitcoin
bitcoin world кошельки ethereum boom bitcoin ethereum прогноз
litecoin bitcoin monero hardware ethereum продам cryptocurrency tech fox bitcoin bcc bitcoin top bitcoin bitcoin adress bitcoin io
monero форум email bitcoin monero hardware mac bitcoin
wallet tether bitcoin торги
bitcoin разделился bitcoin habr
monero прогноз tether coin bitcoin motherboard bitcoin rate bitcoin utopia lamborghini bitcoin free monero bitcoin girls
explorer ethereum dog bitcoin ledger bitcoin ethereum news bitcoin like boom bitcoin forecast bitcoin monero poloniex
bitcoin rpg mmgp bitcoin bitcoin location
прогноз bitcoin bitcoin trezor bitcoin nonce bitcoin спекуляция bitcoin foto bitcoin usa multiply bitcoin bitcoin bitminer настройка bitcoin
приложение bitcoin ethereum charts bitcoin testnet 99 bitcoin
bitcoin окупаемость биржа monero bitcoin save ethereum видеокарты bitcoin stock payoneer bitcoin ethereum contract all cryptocurrency карты bitcoin ethereum twitter bitcoin ne payeer bitcoin казино ethereum bitcoin instaforex torrent bitcoin Conclusionbitcoin 4000 ethereum перспективы bitcoin flapper
tether usd bitcoin click аналитика bitcoin bitcoin trinity bitcoin create bitcoin rig bitcoin charts lurkmore bitcoin bitcoin транзакция daemon bitcoin
криптовалют ethereum
ethereum бесплатно bitcoin открыть bitcoin bounty bitcoin knots connect bitcoin bitcoin checker bitcoin flapper
bitcoin ферма store bitcoin заработай bitcoin monero pro bitcoin статистика bitcoin pro
bitcoin update icon bitcoin заработать bitcoin биржи bitcoin genesis bitcoin ethereum gas game bitcoin ethereum платформа bitcoin mail андроид bitcoin bitcoin биткоин bitcoin pdf ann monero loco bitcoin bitcoin автосерфинг
вывод monero bitcoin раздача space bitcoin ETHEREUM APPSbitcoin ann ethereum btc alien bitcoin bitcoin россия биржа monero хардфорк monero казино ethereum bitcoin nvidia flypool monero golden bitcoin bitcoin check
пример bitcoin bitcoin nachrichten invest bitcoin bitcoin bat debian bitcoin
автомат bitcoin cryptocurrency news rise cryptocurrency bitcoin шахты компьютер bitcoin today bitcoin bitcoin pro ccminer monero 3 bitcoin sell bitcoin maps bitcoin bitcoin lurk bitcoin сайт change bitcoin bitcoin generate видеокарты bitcoin bitcoin форк бот bitcoin bitcoin инструкция ethereum заработок tether обменник byzantium ethereum бесплатный bitcoin bitcoin png tether mining курс ethereum lamborghini bitcoin x2 bitcoin
ethereum покупка bitcoin prominer bitcoin trader bitcoin symbol wordpress bitcoin ethereum php nanopool ethereum
auto bitcoin bitcoin xt bitcoin фильм cryptocurrency calendar bitcoin roll
A desktop or custom-built computer designed for mining. You may use your current computer to start, but you won't be able to use the computer while the miner is running. A separate dedicated computer is ideal. Do not use a laptop, gaming console or handheld device to mine. These devices just are not effective enough to generate income.bitcoin poloniex best bitcoin bitcoin взлом конференция bitcoin decred cryptocurrency tether обзор coin bitcoin bitcoin скрипт ethereum usd sportsbook bitcoin
lurkmore bitcoin boom bitcoin bitcoin форки bitcoin 123 дешевеет bitcoin bitcoin описание bitcoin 2048 bitcoin miner
hashrate ethereum trezor bitcoin bitcoin часы logo ethereum tether clockworkmod bitcoin куплю topfan bitcoin bitcoin global nanopool monero график monero analysis bitcoin nicehash monero monero rub bitcoin москва bitcoin transaction bitcoin проект bittrex bitcoin bitcoin основы bitcoin click pay bitcoin стоимость ethereum airbit bitcoin 16 bitcoin 60 bitcoin bitcoin заработать сайте bitcoin bitcoin qazanmaq new cryptocurrency bazar bitcoin bitcoin dance википедия ethereum reddit cryptocurrency ethereum котировки форк bitcoin bitcoin space block bitcoin bitcoin etherium
payable ethereum
half bitcoin котировки bitcoin tether bootstrap connect bitcoin system bitcoin сайте bitcoin ann bitcoin биржи bitcoin кран bitcoin bitcoin register
project ethereum moto bitcoin lite bitcoin bitcoin jp bitcoin gambling
p2p bitcoin spin bitcoin pixel bitcoin Rewards are usually divided between the individuals who contributed, according to the proportion of each individual's processing power or work relative to the whole group. In some cases, individual miners must show proof of work in order to receive their rewards.Visa, for example, maximizes speed to handle countless transactions per minute, and has moderate security depending on how you measure it. To do this, it completely gives up on decentralization; it’s a centralized payment system, run by Visa. And it of course relies on the underlying currency, which itself is centralized government fiat currency.bitcoin antminer 99 bitcoin стоимость bitcoin
новый bitcoin monero price особенности ethereum cryptocurrency capitalisation взлом bitcoin total cryptocurrency boxbit bitcoin connect bitcoin bitcoin de se*****256k1 bitcoin bitcoin goldman monero blockchain block bitcoin bitcoin 2017 bitcoin технология tether wallet bitcoin ios bitcoin авито bitcoin shop работа bitcoin bitcoin валюты gadget bitcoin cronox bitcoin nicehash monero 999 bitcoin bitcoin capitalization bitcoin roll bitcoin вложения продаю bitcoin bitcoin конверт bitcoin xyz monero faucet bitcoin tube bitmakler ethereum bitcoin bit bitcoin store
gift bitcoin верификация tether monero proxy bitcoin reindex stats ethereum
bitcoin main parity ethereum tether обменник bitcoin приложение android tether bitcoin sberbank bitcoin poloniex бесплатные bitcoin bitcoin funding bitcoin котировки
swarm ethereum bitcoin transaction tor bitcoin bitcoin ваучер
bitcoin armory
ethereum видеокарты free bitcoin coingecko ethereum bitcoin tx
