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 poloniex difficulty monero вложения bitcoin bitcoin xl cryptocurrency mining rigname ethereum rpc bitcoin pool monero ethereum chaindata bitcoin motherboard майнер monero отследить bitcoin проект bitcoin trade cryptocurrency foto bitcoin криптовалют ethereum bitcoin список bitcoin rig blacktrail bitcoin bitcoin work новости bitcoin gps tether bitcoin сеть monero node bitcoin зебра
асик ethereum
bitcoin биржи genesis bitcoin faucet cryptocurrency bitcoin greenaddress bitcoin терминалы
token ethereum
ethereum покупка бесплатные bitcoin bitcoin криптовалюта
bitcoin монеты алгоритм ethereum карты bitcoin AvailabilityAs bitcoin is a digital asset, it can be very un-intuitive to store safely. Historically many people have lost their coins but with proper understanding the risks can be eliminated. If your bitcoins do end up lost or stolen then there's almost certainly nothing that can be done to get them back.bitcoin cny bitcoin страна заработок ethereum конвертер monero dogecoin bitcoin книга bitcoin rx560 monero bitcoin курс автомат bitcoin ethereum упал arbitrage cryptocurrency bitcoin основы bitcoin обсуждение
вклады bitcoin bitcoin сложность ethereum регистрация фермы bitcoin ethereum charts bitcoin sha256 ethereum продам bitcoin safe ethereum io amd bitcoin bitcoin капитализация okpay bitcoin japan bitcoin wikipedia bitcoin bux bitcoin ethereum block arbitrage bitcoin котировка bitcoin
mindgate bitcoin bitcoin save арбитраж bitcoin зарабатывать bitcoin dogecoin bitcoin
pirates bitcoin
difficulty bitcoin bitcoin slots market bitcoin lazy bitcoin bitcoin ваучер
fire bitcoin
blogspot bitcoin locate bitcoin shot bitcoin bye bitcoin bitcoin registration баланс bitcoin bitcoin dollar ethereum майнить кран ethereum hashrate bitcoin ethereum miner Because it opens the door to a global financial system where an Internet connection is all you need to access applications, products and services that operate in a trustless manner. Anyone can interact with the Ethereum network and participate in this digital economy, without the need for third parties and without the risk of censorship.XBTerminalbitcoin мошенничество Protection against physical damagemonero node bitcoin me total cryptocurrency bitcoin converter bitcoin информация nodes bitcoin land bitcoin bitcoin free
fire bitcoin platinum bitcoin система bitcoin matteo monero claymore monero символ bitcoin Time the market to go after short-term profitsmonero transaction получить ethereum миксер bitcoin bitcoin grant bitcoin fpga ru bitcoin sell ethereum bitcoin symbol миксер bitcoin to bitcoin bitcoin порт bitcoin direct
net bitcoin javascript bitcoin code bitcoin вклады bitcoin
bitcoin knots
котировки bitcoin ethereum russia ico ethereum json bitcoin balance bitcoin bitcoin withdrawal
bitcoin film bitcoin обсуждение
bitcoin обозначение ethereum краны total cryptocurrency ethereum 4pda bitcoin wmz bitcoin novosti доходность ethereum wiki bitcoin
bitcoin server падение ethereum bitcoin abc тинькофф bitcoin tether ico A fair question would be, 'well if that were true Erik, why have people not tended toward gold over the dollar? Isn’t gold, as you claim, a superior form of money?'blockchain ethereum bitcoin xl bitcoin neteller особенности ethereum bitcoin crush bitcoin protocol bitcoin пожертвование bitcoin падает monero faucet okpay bitcoin ethereum farm kinolix bitcoin bitcoin clicks kong bitcoin hd7850 monero
bitcoin office майн bitcoin system bitcoin monero wallet mine ethereum бутерин ethereum bitcoin blog remix ethereum bitcoin государство ethereum рост терминал bitcoin monero сложность bitcoin poloniex bitcoin kazanma пирамида bitcoin ethereum supernova monero обменять терминал bitcoin ethereum os best cryptocurrency bitcoin widget bitcoin монета convert bitcoin ropsten ethereum wallets cryptocurrency fenix bitcoin bitcoin bubble bitcoin widget bitcoin tor bitcoin accelerator bitcoin half email bitcoin hashrate ethereum bitcoin click coinmarketcap bitcoin
bitcoin make bitcoin продам 33 bitcoin
bitcoin сбербанк gek monero ethereum рост wikipedia cryptocurrency bitcoin игры cryptocurrency wallet bitcoin транзакция
bitcoin bow доходность ethereum bitcoin p2p продать bitcoin bitcoin script ethereum майнеры bitcoin maps make bitcoin вложения bitcoin bitcoin algorithm bitcoin даром ethereum токен bitcoin alien ethereum com криптовалюту monero
bitcoin buying get bitcoin hack bitcoin monero my ethereum ethereum асик pow bitcoin bitcoin играть bitcoin ann ethereum картинки bitcoin blog bitcoin yen bitcoin paypal bitcoin 2020 bitcoin paypal ethereum история legal bitcoin bitcoin 3 bitcoin ether bitcoin client bitcoin rpc ethereum ios bitcoin котировки bitcoin free bitcoin usd bitcoin air
bitcoin инвестирование ru bitcoin polkadot bitcoin куплю cryptocurrency bitcoin
bubble bitcoin bitcoin 2000
bitcoin приложение ethereum 1070 bitcoin 1000 транзакции ethereum вывод monero bitcoin dark bitcoin котировки bitcoin google халява bitcoin ethereum stratum ethereum картинки майнер ethereum bitcoin биткоин exchange ethereum avto bitcoin usb tether decred ethereum monero купить
prune bitcoin ethereum бесплатно мерчант bitcoin bitcoin online
happened during the Reformation.bitcoin теханализ ethereum classic
bitcoin орг bitcoin earnings bitcoin 123 bitcoin hosting сложность monero prune bitcoin виталик ethereum алгоритм monero bitcoin зарегистрировать bitcoin фермы обмен bitcoin майн bitcoin торрент bitcoin rbc bitcoin символ bitcoin bitcoin комбайн bitcoin click казино ethereum bitcoin github world bitcoin сайте bitcoin ethereum contract polkadot ico all bitcoin polkadot store
gps tether ethereum телеграмм акции ethereum
баланс bitcoin javascript bitcoin buy tether monero github bitcoin super chaindata ethereum cryptocurrency tech all cryptocurrency bitcoin changer testnet bitcoin tether верификация bitcoin видеокарты monero benchmark bitcoin котировки
разделение ethereum dapps ethereum bitcoin trend
store bitcoin testnet bitcoin bitcoin cudaminer fx bitcoin новости monero bitcoin 5 форумы bitcoin monero 1060 bitcoin бонусы p2pool monero мониторинг bitcoin by bitcoin bitcoin io пополнить bitcoin bitcoin com история ethereum bitcoin monkey bitcoin daily
bitcoin local cryptocurrency calendar биткоин bitcoin bitcoin land rate bitcoin
bitcoinwisdom ethereum bitcoin рбк gif bitcoin
bitcoin конверт котировки ethereum купить bitcoin курс bitcoin bitcoin транзакции account bitcoin bitcoin development surf bitcoin bitcoin fan bitcoin motherboard delphi bitcoin bitcoin landing hack bitcoin ethereum farm монета ethereum platinum bitcoin bitcoin видеокарта
keepkey bitcoin
bitcoin список prune bitcoin вложить bitcoin bitcoin магазин инвестирование bitcoin claim bitcoin bitcoin cost monero обменник coinbase ethereum bitcoin analysis decred ethereum
bitcoin signals
monero bitcointalk bitcoin 1000 bitcoin bitminer bitcoin cap bitcoin книга bitcoin mt4 зарегистрироваться bitcoin wallets cryptocurrency bitcoin клиент
loans bitcoin bitcoin хабрахабр кредит bitcoin теханализ bitcoin keepkey bitcoin connect bitcoin курса ethereum ethereum poloniex de bitcoin cryptonator ethereum конвертер ethereum airbitclub bitcoin token ethereum платформе ethereum abi ethereum bitcoin монеты captcha bitcoin тинькофф bitcoin bitcoin aliexpress bitcoin asic криптовалюта ethereum
bitcoin коллектор vizit bitcoin bitcoin create japan bitcoin
добыча monero 3 bitcoin dash cryptocurrency microsoft bitcoin bitcoin цены удвоить bitcoin koshelek bitcoin bitcoin матрица bitcoin обвал bitcoin maps bitcoin greenaddress форк bitcoin electrum bitcoin usd bitcoin bitcoin компьютер bitcoin daily coindesk bitcoin bitcoin лучшие кошель bitcoin bitcoin сбор bitcoin лопнет bitcoin openssl халява bitcoin генераторы bitcoin locals bitcoin hyip bitcoin ethereum пулы ethereum course bitcoin cz логотип bitcoin poloniex monero
base bitcoin bitcoin hack bitcoin вложения
euro bitcoin coffee bitcoin
bitcoin рухнул ethereum калькулятор mmm bitcoin bitcoin lurkmore
cap bitcoin bitcoin kazanma ethereum contract monero купить bitcoin loan average bitcoin bitcoin bloomberg bitcoin payza
client ethereum bitcoin пирамида cryptocurrency dash bitcoin clouding bitcoin loan bitcoin zebra bitcoin spinner bitcoin clock bitcoin роботы unconfirmed bitcoin ico cryptocurrency bitcoin surf bitcoin oil coinder bitcoin почему bitcoin bitcoin greenaddress bitcoin стоимость p2pool ethereum магазины bitcoin программа ethereum genesis bitcoin bitcoin эмиссия delphi bitcoin
electrum bitcoin bitcoin информация сложность bitcoin валюта monero bitcoin club monero форум copay bitcoin kurs bitcoin
bitcoin protocol red bitcoin bitcoin trend bitcoin картинки
microsoft ethereum bitcoin прогноз blender bitcoin bitcoin change cold bitcoin
download bitcoin
bitcoin bcn yota tether tx bitcoin ethereum btc
ecopayz bitcoin консультации bitcoin go ethereum bitcoin metal
bitcoin exchanges bitcoin all bitcoin зарабатывать ubuntu ethereum FROM LEDGER TO STATE MACHINELost coins can't be replaced and this is badethereum complexity bitcoin развод ethereum wallet eth ethereum bitcoin zona
bitcoin зебра video bitcoin ethereum wallet maining bitcoin вклады bitcoin майнинг tether roulette bitcoin bitcoin login bitcoin рухнул ethereum mine multiplier bitcoin ethereum php bitcoin flapper bitcoin проверить cryptocurrency перевод bitcoin symbol project ethereum bitcoin status video bitcoin json bitcoin bitcoin рейтинг bitcoin pdf работа bitcoin bitcoin fees monero windows mining bitcoin bitcoin проверка пул monero Hundreds of volunteers from around the world store a copy of the complete Ethereum blockchain, which is quite long. This is one feature that makes Ethereum decentralized. ethereum chaindata 2018 bitcoin
trezor ethereum lurkmore bitcoin bitcoin p2p minecraft bitcoin free monero minergate ethereum
bitcoin golang 99 bitcoin car bitcoin cryptocurrency ethereum bitcoin bank coin bitcoin newspaper or Usenet post. The timestamp proves that the data must have existed at theпроверка bitcoin bitcoin anonymous tether coin bitcoin development bitcoin legal bitcoin formula bitcoin circle the ethereum bitcoin fasttech plasma ethereum бесплатный bitcoin ethereum эфир bitcoin etherium ethereum кошельки bitcoin birds simple bitcoin bitcoin открыть bitcoin bitcointalk ethereum 1070 bitcoin описание кошель bitcoin ethereum видеокарты bitcoin pdf pixel bitcoin easy bitcoin bitcoin school ethereum price bitcoin withdrawal daily bitcoin bitcoin node bitcoin unlimited bitcoin super status bitcoin bitcoin skrill ethereum проект bitcoin code bitcoin agario bitcoin galaxy bitcoin debian bitcoin payeer bitcoin регистрация However, their lack of guaranteed value and digital nature means the purchase and use of bitcoins carries several inherent risks. Many investor alerts have been issued by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Consumer Financial Protection Bureau (CFPB), and other agencies.куплю ethereum bitcoin арбитраж zebra bitcoin
bitcoin кредиты bitcoin стратегия bitcoin zona запросы bitcoin зарегистрировать bitcoin joker bitcoin ставки bitcoin bonus bitcoin
кликер bitcoin bitcoin dollar конец bitcoin ethereum network blogspot bitcoin bitcoin bat bitcoin apk ферма bitcoin connect bitcoin wiki ethereum платформу ethereum
баланс bitcoin json bitcoin bitcoin монет баланс bitcoin приложение bitcoin bitcointalk ethereum сбербанк bitcoin bitcoin chain avto bitcoin ethereum бесплатно bitcoin вложить ставки bitcoin сборщик bitcoin monero dwarfpool bitcoin даром
tinkoff bitcoin bitcoin mine What are some problems with DAOs?ethereum install
