looking at the numbers we are DEAD on track for a Three-peat of one of the most exciting trading extravaganzas of the millenium, the 3 year Bitcoin Halving! now the bitcoin halving is magical because not only does it bottleneck supply and cost of bitcoin production causing a price squeeze upward unlike many assets ever see, all of its son and daughter currencies share in the enthusiasm this crypto gold rush brings and several of the stronger coins also experience incredible gains, gains that have literally turned household mining nerds like me from streetside hustlers and gamers into millionaire traders in one of the largest emerging tech industries this world may ever see. That being said, I have hear traders here sadly say things like (and i quote!) - "I dont care about the halving, I dont even know what it is, i assume its something like when a stock halves"
sadly this was not a joke as I directly asked, because as someone who came to trading through mining BTC on gaming consoles before there was even an exchange to trade the asset on I was blown away that someone would scoff at something so intrigul and important to the asset they were offerring advice about trading. SO!! a few words on what the halving is, and MOST IMPORTANTLY, WHAT THAT DOES TO THE MINING OF BITCOIN LANDSCAPE AND SUBSEQUENT COST OF CREATING NEW BITCOINS -
for those who understand blockchain skip down to the conclusion ;) for those who dont I will keep this quick. Bitcoin is an asset that is cryptographically created by computing devices or miners solving complex mathematical solves (hashes) as fast as they can in competetion to be the first to confirm the new block. the first node(device) to complete this hash solve revieves the current block reward (started at 50BTC 10/min, then halved to 25, then 12.5, and now we are halving yet again to 6.75) so every 3 years the amount of new bitcoins being created and sold into the market is cut directly in half, causing a cascade of events.
ONE - as we are allready seeing with record high hashrates the competition leading up to the halving becomes fierce and as more people compete for the same amount of blocks, the cost of producing bitcoins goes up, causing a prehalving bull run usually doubling the price or so before the actual even.
TWO - now when the halving comes the smaller mines and mines operating in places with higher power bill will not be able to comete and many of them fall off, this leads to hashrates fluctuating and difficulties rising and falling dramatically but mostly the difficulty (or relative chances of solving the block first and getting the bitcoin reward) climbs, and as the difficulty climbs so does cost. period. like most assets, as the cost of production doubles and triples and quadruples overnight the cost of the asset skyrockets. as Bitcoin is and may always will be seen as the grandaddy of all crypto currencies, this rush of wealth and money inlux not only drives up the price of bitcoin but all the other strong "alt" coin assets as people hedge their bets by investing in multiple currencies just as they would in any other market (you wouldnt just buy google stock and sit back you DIVERSIFY). so assets in the crypto class soar! I expect the total market cap of all cryptos to soar from a quarter billion to roughly 2.2 trillion dollars by the end of next year depending on several factors but we can talk about that in another revue)
3) Satoshi said that the price of bitcoin will always gravitate toward the cost of production, so as the miners find their production balance and the price action starts to cool prices reach a sharp peak as investors start to pull big positions and flipping their bets to shorts to profit from the rebound back down towards the real cost of production which in this case usually means an 82-64% pullback and as long as you time your shorts right there can be more predictable gains made in this bear side of the market as well... if you know how markets breath you will know when the whales are diving out and its time to flip that bitch short and ride it back down the mountain!
so to say you dont care about the halving and invest in bitcoin in my opinion is about as irresponsible and ignorant as one can be but thats coming from someone who got into investment accidently by mining tens of thousands of bitcoins and then 100s of thousands of ethereum with my geeky friends! so I am obsessed with technicals(also full disclosure I also work on developing newer crypto currencies and fixing computational solves that I believe to improve on the strength of the satoshi vision and intended purpose of bitcoin...
THE FINAL CONCLUSION OF THIS REVUE!!! -- we are right where we were as my weekly chart above shows. in october of 2015 right before the halving BTC ran up from 189$ , to just shy of 400$ and then pulled back about 47% (this year we pulled back 46 ish) then, at the end of october as the mining dificulty rises as it is now the price just rocket ship doubles as the shorts pull out and or are squeezed out (THEY GOT REAL CLOSE ON THE LAST RUN UP TO 8890!) people with big shorts still open thinking we are going to 6 k are just dreaming and hoping they arent wrong but they are going to have to take their cash and run soon, this is a fact, what is borrowed must be bought back and that comes right back up the books as I am sure you all know lol! SO! my conclusion is we are getting very close to the pre-halving double up and I do expect it to double if we dont get hung at the same mid 13k zone we did before... , I have no stops on my positions but I have deep accounts and relationships with whales that assure me the dumping is through and I have been here 3 times before... so I hope that helps some of you WE ARE RIGHT WHERE WE ALWAYS FIND OURSELVES IN RELATIONSHIP TO THE BITCOINS 3 YEAR HALVING CYCLE AND THE BULL RUN THAT REALLY POPS EYELIDS IS STILL 6 MONTHS AWAY! PEOPLE THINK 2017 WAS AN ANOMOLY WHEN IN REALITY IT WAS THE POOREST PERFORMANCE BITCOIN HAS PUT ON YET! 4200% WAS BY FAR THE WORST PERFORMANCE OUT OF BITCOIN WE HAVE YET SEEN! 20K WAS A POOR PERFORMANCE! this year is going to rock worlds and be one of the greatest wealth transfers of our generation and possibly ever depending on how those in the know play it and how much tom foolery the banksters and wallstreet pranksters try to pull on us. that being said, my big longs are wide open with targets in the 9s, and mid 10s for now but I am thinking longer term and none of my personally long held bitcoins being sold for a penny less than 50,000$. bitcoin is far more valuable and scarce than a 50,000$ kilogram of gold, there is NO reason it cannot be traded for FAR more than GOLD big investors just need to wake up to this fact and the fact that this will be run number 4 is going to bring alot of scared old money out because old money hates missing out on big money moves, they cant help but get a taste, and this will benefit us all as i believe bitcoin will achieve its own trillion dollar market cap plus this run! happy hunting!
#trade hard in the peaks #TRADE HARDER IN THE VALLEYS! #CHARTSTALK & #FOMOsWALK!
sadly this was not a joke as I directly asked, because as someone who came to trading through mining BTC on gaming consoles before there was even an exchange to trade the asset on I was blown away that someone would scoff at something so intrigul and important to the asset they were offerring advice about trading. SO!! a few words on what the halving is, and MOST IMPORTANTLY, WHAT THAT DOES TO THE MINING OF BITCOIN LANDSCAPE AND SUBSEQUENT COST OF CREATING NEW BITCOINS -
for those who understand blockchain skip down to the conclusion ;) for those who dont I will keep this quick. Bitcoin is an asset that is cryptographically created by computing devices or miners solving complex mathematical solves (hashes) as fast as they can in competetion to be the first to confirm the new block. the first node(device) to complete this hash solve revieves the current block reward (started at 50BTC 10/min, then halved to 25, then 12.5, and now we are halving yet again to 6.75) so every 3 years the amount of new bitcoins being created and sold into the market is cut directly in half, causing a cascade of events.
ONE - as we are allready seeing with record high hashrates the competition leading up to the halving becomes fierce and as more people compete for the same amount of blocks, the cost of producing bitcoins goes up, causing a prehalving bull run usually doubling the price or so before the actual even.
TWO - now when the halving comes the smaller mines and mines operating in places with higher power bill will not be able to comete and many of them fall off, this leads to hashrates fluctuating and difficulties rising and falling dramatically but mostly the difficulty (or relative chances of solving the block first and getting the bitcoin reward) climbs, and as the difficulty climbs so does cost. period. like most assets, as the cost of production doubles and triples and quadruples overnight the cost of the asset skyrockets. as Bitcoin is and may always will be seen as the grandaddy of all crypto currencies, this rush of wealth and money inlux not only drives up the price of bitcoin but all the other strong "alt" coin assets as people hedge their bets by investing in multiple currencies just as they would in any other market (you wouldnt just buy google stock and sit back you DIVERSIFY). so assets in the crypto class soar! I expect the total market cap of all cryptos to soar from a quarter billion to roughly 2.2 trillion dollars by the end of next year depending on several factors but we can talk about that in another revue)
3) Satoshi said that the price of bitcoin will always gravitate toward the cost of production, so as the miners find their production balance and the price action starts to cool prices reach a sharp peak as investors start to pull big positions and flipping their bets to shorts to profit from the rebound back down towards the real cost of production which in this case usually means an 82-64% pullback and as long as you time your shorts right there can be more predictable gains made in this bear side of the market as well... if you know how markets breath you will know when the whales are diving out and its time to flip that bitch short and ride it back down the mountain!
so to say you dont care about the halving and invest in bitcoin in my opinion is about as irresponsible and ignorant as one can be but thats coming from someone who got into investment accidently by mining tens of thousands of bitcoins and then 100s of thousands of ethereum with my geeky friends! so I am obsessed with technicals(also full disclosure I also work on developing newer crypto currencies and fixing computational solves that I believe to improve on the strength of the satoshi vision and intended purpose of bitcoin...
THE FINAL CONCLUSION OF THIS REVUE!!! -- we are right where we were as my weekly chart above shows. in october of 2015 right before the halving BTC ran up from 189$ , to just shy of 400$ and then pulled back about 47% (this year we pulled back 46 ish) then, at the end of october as the mining dificulty rises as it is now the price just rocket ship doubles as the shorts pull out and or are squeezed out (THEY GOT REAL CLOSE ON THE LAST RUN UP TO 8890!) people with big shorts still open thinking we are going to 6 k are just dreaming and hoping they arent wrong but they are going to have to take their cash and run soon, this is a fact, what is borrowed must be bought back and that comes right back up the books as I am sure you all know lol! SO! my conclusion is we are getting very close to the pre-halving double up and I do expect it to double if we dont get hung at the same mid 13k zone we did before... , I have no stops on my positions but I have deep accounts and relationships with whales that assure me the dumping is through and I have been here 3 times before... so I hope that helps some of you WE ARE RIGHT WHERE WE ALWAYS FIND OURSELVES IN RELATIONSHIP TO THE BITCOINS 3 YEAR HALVING CYCLE AND THE BULL RUN THAT REALLY POPS EYELIDS IS STILL 6 MONTHS AWAY! PEOPLE THINK 2017 WAS AN ANOMOLY WHEN IN REALITY IT WAS THE POOREST PERFORMANCE BITCOIN HAS PUT ON YET! 4200% WAS BY FAR THE WORST PERFORMANCE OUT OF BITCOIN WE HAVE YET SEEN! 20K WAS A POOR PERFORMANCE! this year is going to rock worlds and be one of the greatest wealth transfers of our generation and possibly ever depending on how those in the know play it and how much tom foolery the banksters and wallstreet pranksters try to pull on us. that being said, my big longs are wide open with targets in the 9s, and mid 10s for now but I am thinking longer term and none of my personally long held bitcoins being sold for a penny less than 50,000$. bitcoin is far more valuable and scarce than a 50,000$ kilogram of gold, there is NO reason it cannot be traded for FAR more than GOLD big investors just need to wake up to this fact and the fact that this will be run number 4 is going to bring alot of scared old money out because old money hates missing out on big money moves, they cant help but get a taste, and this will benefit us all as i believe bitcoin will achieve its own trillion dollar market cap plus this run! happy hunting!
#trade hard in the peaks #TRADE HARDER IN THE VALLEYS! #CHARTSTALK & #FOMOsWALK!