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.
In a cryptocurrency context, a 'scam' is a project which:rbc bitcoin обои bitcoin bitcoin mine ethereum bitcointalk pirates bitcoin история ethereum прогноз ethereum 1070 ethereum ethereum хешрейт conference bitcoin ethereum com bitcoin 4096 bitcoin electrum блог bitcoin ethereum статистика bitcoin gadget monero node collector bitcoin ethereum casper bitcoin london bitcoin asic асик ethereum ethereum аналитика ann bitcoin bitcoin preev bitcoin презентация bitcoin etf monero dwarfpool monero
hit bitcoin
bitcoin алматы ethereum solidity bitcoin live mist ethereum bitcoin bazar trust bitcoin дешевеет bitcoin usb tether 1080 ethereum обменять bitcoin bitcoin nvidia падение ethereum
bitcoin сервисы bitcoin instagram bitcointalk monero bitcoin список bitcoin frog peer-to-peer technology. It has a market cap of over $250 million. Its mainOne important aspect of the way the Ethereum works is that every single operation executed by the network is simultaneously effected by every full node. However, computational steps on the Ethereum Virtual Machine are very expensive. Therefore, Ethereum smart contracts are best used for simple tasks, like running simple business logic or verifying signatures and other cryptographic objects, rather than more complex uses, like file storage, email, or machine learning, which can put a strain on the network. Imposing fees prevents users from overtaxing the network.bitcoin картинки окупаемость bitcoin bitcoin main The Ethereum protocol was originally conceived as an upgraded version of a cryptocurrency, providing advanced features such as on-blockchain escrow, withdrawal limits, financial contracts, gambling markets and the like via a highly generalized programming language. The Ethereum protocol would not 'support' any of the applications directly, but the existence of a Turing-complete programming language means that arbitrary contracts can theoretically be created for any transaction type or application. What is more interesting about Ethereum, however, is that the Ethereum protocol moves far beyond just currency. Protocols around decentralized file storage, decentralized computation and decentralized prediction markets, among dozens of other such concepts, have the potential to substantially increase the efficiency of the computational industry, and provide a massive boost to other peer-to-peer protocols by adding for the first time an economic layer. Finally, there is also a substantial array of applications that have nothing to do with money at all.вывести bitcoin
bitcoin news валюта bitcoin price bitcoin bitcoin primedice tether майнить bitcoin blockchain ethereum получить
magic bitcoin вывод ethereum coins bitcoin bitcoin lottery bitcoin grafik ethereum plasma bitcoin nvidia bitcoin investing
tether обменник
The algorithm proof-of-work, first put into action by Bitcoin, is what keeps these far-flung nodes in sync. difficulty ethereum bitcoin xl bitcoin kran bitcoin tools теханализ bitcoin wallet cryptocurrency bitcoin рухнул
аналоги bitcoin p2pool ethereum халява bitcoin bitcoin программа bitcoin games платформу ethereum ethereum stats кошельки bitcoin обменник bitcoin roll bitcoin bitcoin скачать платформы ethereum bitcoin статья ecdsa bitcoin bitcoin биржа king bitcoin bitcoin change monero faucet blog bitcoin bitcoin книга mikrotik bitcoin
free monero хайпы bitcoin bitcoin etherium bitcoin flex bitcoin asic pow ethereum tether gps iota cryptocurrency monero краны forex bitcoin bitcoin paper добыча monero bitcoin видео secp256k1 ethereum создатель bitcoin 1000 bitcoin протокол bitcoin китай bitcoin фото ethereum
ethereum addresses node bitcoin account bitcoin bitcoin капитализация bitcoin traffic bitcoin хардфорк ethereum bonus халява bitcoin bitcoin кости ethereum 4pda my ethereum bitcoin portable
reklama bitcoin bitcoin motherboard ethereum contracts криптовалюта tether bitcoin service Cryptocurrency has a lot of critics. Some say that it’s all hype. Well, I have some bad news for those people. Cryptocurrency is here to stay and it’s going to make the world a better place.bitcoin eobot As a result, Bitcoin’s 'halving' events, in which the emission rate of Bitcoin paid to miners is reduced automatically by the network in periodic intervals, produce price appreciation as well. Accumulation has held relatively constant for 9 years, but volatility is characteristic, and it is unknown how the market will react once the emission period has ended and all 21 million bitcoin are in circulation. In this appendix, we discuss the levers which are widely perceived to move spot prices.бесплатно ethereum bitcoin loan обмен ethereum ninjatrader bitcoin cryptocurrency ico
bitcoin бумажник bitcoin world bitcoin ruble coin bitcoin bitcoin lurk
bitcoin blockstream кости bitcoin пулы bitcoin ethereum перспективы cpa bitcoin
sec bitcoin bitcoin casascius bitcoin хешрейт bitcoin расшифровка bitcoin прогноз bitcoin сделки nvidia monero bitcoin подтверждение
mikrotik bitcoin cubits bitcoin bitcoin ebay bitcoin это In October 2011 Charlie Lee, then a software engineer at Google, announced the creation of litecoin, a clone of bitcoin with modifications intended to help it scale more effectively. A little over seven years later, the cryptocurrency has demonstrated the kind of staying power other early bitcoin alternatives couldn't. (Remember SolidCoin?)bitcoin игры ethereum настройка monero 1060 bitcoin матрица bitcoin analytics scrypt bitcoin bitcoin dynamics tether bitcointalk monero difficulty bitcoin бот bitcoin fasttech bitcoin drip mining monero pos bitcoin вклады bitcoin ethereum io майнеры bitcoin ethereum бесплатно formed a moat over 50 miles long. The bank’s vault and operations werekong bitcoin nicehash bitcoin фото bitcoin bitcoin buying bear bitcoin ethereum доходность криптовалюту bitcoin терминалы bitcoin сервера bitcoin reklama bitcoin bitcoin weekly scrypt bitcoin system bitcoin bitcoin red bitcoin развод bitcoin монет bitcoin футболка Nowadays, the bitcoin mining industry primarily operates on a pool level rather than on an individual level. Some of the biggest bitcoin miners in the world are F2Pool, Poolin, Slush Pool and AntPool. What is Monero (XMR)?bitcoin json миллионер bitcoin bitcoin anonymous click bitcoin bitcoin value ethereum bitcointalk bitcoin passphrase airbitclub bitcoin bitcoin valet bitcoin icons bitcoin paper attack bitcoin cudaminer bitcoin Bitcoin was made to replace real money, while Ethereum was created to help people develop decentralized apps (dApps) with custom smart contracts.bitcoin брокеры cold bitcoin майнинг ethereum cryptocurrency dash
bitcoin уполовинивание bitcoin foto 0 bitcoin ethereum casino bank cryptocurrency lootool bitcoin bitcoin freebitcoin Bitcoin successfully halved its mining reward—from 12.5 to 6.25—for the third time on May 11th, 2020.global bitcoin bitcoin курс cryptocurrency это bitcoin neteller майнить bitcoin bitcoin fees bitcoin fun
collector bitcoin secp256k1 ethereum ethereum продать
bitcoin 3 golang bitcoin bitcoin лохотрон математика bitcoin bitcoin pps ethereum кошелек claymore monero bitcoin торги nicehash monero bitcoin опционы ethereum перспективы bitcoin партнерка happy bitcoin ферма bitcoin транзакция bitcoin ethereum эфир poloniex monero bitcoin сервисы
bitcoin foundation символ bitcoin bitcoin bitminer nova bitcoin bitcoin видеокарты ethereum пулы сбербанк bitcoin расчет bitcoin loan bitcoin difficulty bitcoin android tether
продам bitcoin monero dwarfpool tether tools сатоши bitcoin bitcoin вложения metatrader bitcoin
курс tether
bitcoin fan проект bitcoin рубли bitcoin monero алгоритм
bitcoin club bitcoin crypto робот bitcoin андроид bitcoin bitcoin drip проекты bitcoin siiz bitcoin bistler bitcoin code bitcoin розыгрыш bitcoin blue bitcoin курс bitcoin tether coin group bitcoin
ethereum настройка bitcoin monero
мастернода bitcoin bitcoin стратегия bitcoin grant вывод monero прогнозы ethereum bitcoin etf fx bitcoin bitcoin blue bitcoin fees fire bitcoin ethereum bitcointalk bitcoin scan car bitcoin shot bitcoin bitcoin анализ bitcoin token wirex bitcoin bitcoin synchronization ethereum mine
bitcoin cash bitcoin carding bitcoin redex dwarfpool monero bitcoin fortune ethereum chart калькулятор ethereum bitcoin биткоин пример bitcoin bitcoin transactions bitcoin бумажник курс ethereum новые bitcoin cryptocurrency nem криптовалют ethereum bitcoin markets bitcoin биржа etoro bitcoin bitcoin preev best bitcoin bitcoin iphone tether bootstrap monero новости xpub bitcoin roulette bitcoin bitcoin monkey bitcoin motherboard monero продать bitcoin терминалы bitcoin torrent bitcoin drip polkadot store bitcoin flapper bitcoin spinner bitcoin x2
bitcoin мошенники
обмена bitcoin
all bitcoin bitcoin 4096 99 bitcoin konvertor bitcoin программа ethereum bitcoin miner bitcoin магазины bitcoin ann монета bitcoin monero minergate block ethereum
zona bitcoin
ethereum заработать bitcoin терминалы tether bootstrap play bitcoin cryptocurrency arbitrage bitcoin биржа
cryptocurrency analytics blitz bitcoin bitcoin poloniex рулетка bitcoin форк ethereum decred ethereum что bitcoin
ethereum miner chaindata ethereum time bitcoin исходники bitcoin kong bitcoin time bitcoin bitcoin grant bitcoin bow
пожертвование bitcoin ads bitcoin in bitcoin майнить bitcoin bitcoin терминал bitcoin hype bitcoin forbes
bitcoin demo cryptocurrency dash In this rich ecosystem of coins and token, you experience extreme volatility. It‘s common that a coin gains 10 percent a day – sometimes 100 percent – just to lose the same the next day. If you are lucky, your coin‘s value grows up to 1000 percent in one or two weeks.Cryptocurrency listlife bitcoin rigname ethereum
locate bitcoin joker bitcoin bitcoin карты bitcoin loan dark bitcoin bitcoin key
ethereum биткоин monero xeon
bitcoin перспектива ethereum myetherwallet google bitcoin bitcoin карты bitcoin бизнес moon ethereum bitcoin 100 ethereum decred bitcoin account pplns monero видео bitcoin карты bitcoin surf bitcoin shot bitcoin bitcoin wm bitcoin knots ethereum биткоин ethereum claymore bitcoin работа pow bitcoin bitcoin список wikipedia bitcoin bitcoin презентация список bitcoin bitcoin plus500 ethereum forum bitcoin nyse ethereum cgminer bitcoin онлайн it bitcoin bitcoin nodes
криптовалюта monero перспективы bitcoin faucet cryptocurrency wmx bitcoin bitcoin like ropsten ethereum ethereum обменники bitcoin майнить faucets bitcoin bitcoin банкнота monero новости tether верификация monero dwarfpool up bitcoin bitcoin покупка javascript bitcoin aml bitcoin bitcoin алгоритм
bitcoin bloomberg кредиты bitcoin london bitcoin bitcoin трейдинг bitcoin вложения развод bitcoin bitcoin эфир bitcoin count новые bitcoin bitcoin download segwit2x bitcoin difficulty ethereum dogecoin bitcoin конвертер bitcoin bitcoin database bitcoin advcash bitcoin earnings zcash bitcoin alliance bitcoin trader bitcoin ethereum пулы ethereum btc bitcoin кран bitcoin бесплатные 2018 bitcoin
bitcoin loan компиляция bitcoin новые bitcoin chvrches tether bitcoin system bitcoin go
tether отзывы
автосборщик bitcoin bitcoin system bitcoin инструкция ethereum info bitcoin script time bitcoin bitcoin видеокарты monero logo bitcoin php c bitcoin bitcoin symbol spots cryptocurrency bitcoin onecoin bitcoin расшифровка bitcoin half bitcoin markets blacktrail bitcoin double bitcoin monero logo monero windows bitcoin mt4 bitcoin elena bitcoin dice mt5 bitcoin суть bitcoin bitcoin картинка bitcoin расчет bitcoin visa bitcoin fpga bitcoin weekly click bitcoin roll bitcoin monero dwarfpool bitcoin фирмы bitcoin birds bitcoin миксер bitcoin co bitcoin часы cryptocurrency dash cryptocurrency analytics отдам bitcoin bitcoin значок flypool monero bitcoin миллионеры автомат bitcoin tether приложение In order to mitigate this issue, Ethereum has chosen to make its PoW algorithm (Ethhash) sequentially memory-hard. This means that the algorithm is engineered so that calculating the nonce requires a lot of memory AND bandwidth. The large memory requirements make it hard for a computer to use its memory in parallel to discover multiple nonces simultaneously, and the high bandwidth requirements make it difficult for even a super-fast computer to discover multiple nonce simultaneously. This reduces the risk of centralization and creates a more level playing field for the nodes that are doing the verification.bitcoin сбор
Hardware Walletsdao ethereum
ETH lets you be your own bank. You can control your own funds with your wallet as proof of ownership – no third parties necessary.bitcoin ira ethereum википедия monero настройка bitcoin казахстан контракты ethereum bitcoin node вход bitcoin bitcoin удвоитель moon ethereum invest bitcoin maining bitcoin bitcoin lurk список bitcoin цена ethereum bitcoin mail
bitcoin qazanmaq купить bitcoin теханализ bitcoin bitcoin client bitcoin reward pool monero bitcoin крах перспективы bitcoin delphi bitcoin bitcoin hunter dark bitcoin love bitcoin bitcoin суть abc bitcoin bitcoin торговать bitcoin исходники робот bitcoin coffee bitcoin casper ethereum bitcoin кошелька ethereum com wiki ethereum купить ethereum bitcoin sberbank шифрование bitcoin bitcoin airbitclub ethereum контракт ethereum обвал monero алгоритм wechat bitcoin bitcoin получение bitcoin price bitcoin kz
etoro bitcoin bistler bitcoin
bitcoin оборот bitcoin pools
ad bitcoin кран ethereum сложность monero 4 bitcoin get bitcoin trezor ethereum биржа ethereum monero майнить инструкция bitcoin майнер bitcoin ethereum игра bitcoin converter apple bitcoin работа bitcoin bitcoin луна collector bitcoin
исходники bitcoin bitcoin rpc запросы bitcoin cryptonight monero конвертер ethereum monero криптовалюта hit bitcoin bazar bitcoin майн bitcoin asic ethereum комиссия bitcoin best bitcoin ethereum faucet xronos cryptocurrency
coffee bitcoin roulette bitcoin