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Author: Admin | 2025-04-27
I’ve received many emails about Bitcoin over this summer and autumn. I’ve answered several of them via email, but figured I would summarize the most popular ones into a quick article on the subject. These are common misconceptions, risks, or questions. All of which make sense to ask, so I do my best here to address them as I see it.If you haven’t read it, I’d recommend reading my July Bitcoin article first.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.This linear price chart goes from the beginning of 2016 to the beginning of 2019, and shows how it looked like a classic bubble:Chart: StockCharts.comMaybe 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.Chart Source: Chart Source: PlanB @100trillionUSD, with annotations added by Lyn AldenEach 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
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