BTCUSD at the weekly view.
The media and talking heads announced the end the of Bitcoin... for the 415th time in the past 10 years. That last part is not a joke or sarcasm. That number probably went higher as I typed this post.
Why was Bitcoin created? The long story short, Bitcoin was created from the distrust of big banks, big government, and the infinite "money printing." How so?
Back in 2009, big banks were getting bailed out and it was near the beginning of the quantitative easing program. If anyone remembers back in 2008, that's when banks were selling below investment grade (subprime) bonds/debts and advertising them with an AAA grade. Instead of being reprimanded, governments bailed out the banks with "money printing" during the recession while the average person was getting laid off. Millennials (I am one) remember that unfair treatment and that anger lived onto today such as the Gamestonk event.
Satoshi Nakamoto (not his real name) distrusted this new era of money printing and excess money supply. He thought that this will continue to grow which turned out to be true. So, he created Bitcash (predecessor of Bitcoin) as a rejection or distrust from the current financial system. Bitcoin would be limited unlike infinite money printing. Now that banks can credit people with the stimulus check, that is a double edged sword. If banks can credit people's accounts, what can stop them from taking money away if the person is a political enemy?
Essentially, Bitcoin's purpose has a libertarian element behind it. It's why the original investors were passionate about it and held onto it. It was a political statement against big banks and big government. What gives one person or entity the right to judge the fate of an entire population?
This is not my opinion. I am presenting the philosophical background behind it.
What is Bitcoin? To put in simple terms, I have to use an analogy. Think of Bitcoin as a digital version of vaults (black boxes). You can load up all the financial information of accounts that are floating in the dark web which as secured in these encrypted "vaults." Each "vault" or black box is kind of like a treasure box which is loaded with financial information. One then could transfer this form of cash within a matter of minutes without banks or government intervening. Banks' revenue tends to derive from either interest from debt or from transaction fees. With crypto's invention, essentially, these crypto transfers prevent banks from collecting these transfer fees revenue. That and the rates to transfer crypto were cheaper too. If you want more details, the white papers are available.
Now where did all this propaganda against crypto come from? Well, if you look at the strategy, you can see something similar to gold. In 1933, Executive Order 6102 banned the ownership of gold. At the time, the perception was to fight against hoarding and criminal activities. In truth, this was to remove the limit of money printing back then. Does this sound familiar? Meanwhile, the banks back then were collecting gold while the people could not. Today, the top holders of gold are the big banks. Ethically, that act was dirty. However, it was also strategically brilliant.
Are the big banks interested in Bitcoin too and taking advantage of this current bearish sentiment on the media? Is that a similar strategy as employed back in 1933? The article below should give you a clue. Is it nefarious? No, not really. It's just the big boys taking advantage of people's emotional reactions which is what the best traders do anyways.
www.businesswire.com...ell-and-Hold-Bitcoin
Those that think crypto is just a fad are usually people who 1) do not know what it is, but want to make an opinion anyways or 2) do not understand what it is, but ego prevents them from admitting it... or 3) both. Just ask very basic questions about what crypto is and why it was created, then you can definitely see the cracks in their argument and holes in their knowledge. Or they are just permabear who is just shorting everything since March 2020.
No, I do not think Bitcoin is going away anytime soon. These boring periods of consolidation are when big wallets accumulate. From a very big view, Bitcoin's big channel is an uptrend. To compensate for the volatility, I had to use the logarithmic scale since that scale is specifically used to account for volatility over a long period of time. I am in the camp that this will be an extended cycle for Bitcoin. More shake outs and consolidation to crush bullish sentiment. People will likely chase gold and silver while Bitcoin consolidates for the next move up.
The crypto market is a separate market from equities. The two things that link them together are 1) broad market liquidity levels and 2) broad monetary policies such as interest rates and financial leverage. Remember, crypto is about chess, not checkers. It does crash every 4-5 years. If so, I'll be buying more around the 200 week SMA. I literally gave my wife my hard wallet and told her to store it away from me for a year. It's because the volatility will mess up your view of the big picture and make you panic sell. I can see that was the right decision. In the next cycle's crash, I'll be doing that again and pretty much force patience upon myself. It's like locking the junk food away when on a diet.
The media and talking heads announced the end the of Bitcoin... for the 415th time in the past 10 years. That last part is not a joke or sarcasm. That number probably went higher as I typed this post.
Why was Bitcoin created? The long story short, Bitcoin was created from the distrust of big banks, big government, and the infinite "money printing." How so?
Back in 2009, big banks were getting bailed out and it was near the beginning of the quantitative easing program. If anyone remembers back in 2008, that's when banks were selling below investment grade (subprime) bonds/debts and advertising them with an AAA grade. Instead of being reprimanded, governments bailed out the banks with "money printing" during the recession while the average person was getting laid off. Millennials (I am one) remember that unfair treatment and that anger lived onto today such as the Gamestonk event.
Satoshi Nakamoto (not his real name) distrusted this new era of money printing and excess money supply. He thought that this will continue to grow which turned out to be true. So, he created Bitcash (predecessor of Bitcoin) as a rejection or distrust from the current financial system. Bitcoin would be limited unlike infinite money printing. Now that banks can credit people with the stimulus check, that is a double edged sword. If banks can credit people's accounts, what can stop them from taking money away if the person is a political enemy?
Essentially, Bitcoin's purpose has a libertarian element behind it. It's why the original investors were passionate about it and held onto it. It was a political statement against big banks and big government. What gives one person or entity the right to judge the fate of an entire population?
This is not my opinion. I am presenting the philosophical background behind it.
What is Bitcoin? To put in simple terms, I have to use an analogy. Think of Bitcoin as a digital version of vaults (black boxes). You can load up all the financial information of accounts that are floating in the dark web which as secured in these encrypted "vaults." Each "vault" or black box is kind of like a treasure box which is loaded with financial information. One then could transfer this form of cash within a matter of minutes without banks or government intervening. Banks' revenue tends to derive from either interest from debt or from transaction fees. With crypto's invention, essentially, these crypto transfers prevent banks from collecting these transfer fees revenue. That and the rates to transfer crypto were cheaper too. If you want more details, the white papers are available.
Now where did all this propaganda against crypto come from? Well, if you look at the strategy, you can see something similar to gold. In 1933, Executive Order 6102 banned the ownership of gold. At the time, the perception was to fight against hoarding and criminal activities. In truth, this was to remove the limit of money printing back then. Does this sound familiar? Meanwhile, the banks back then were collecting gold while the people could not. Today, the top holders of gold are the big banks. Ethically, that act was dirty. However, it was also strategically brilliant.
Are the big banks interested in Bitcoin too and taking advantage of this current bearish sentiment on the media? Is that a similar strategy as employed back in 1933? The article below should give you a clue. Is it nefarious? No, not really. It's just the big boys taking advantage of people's emotional reactions which is what the best traders do anyways.
www.businesswire.com...ell-and-Hold-Bitcoin
Those that think crypto is just a fad are usually people who 1) do not know what it is, but want to make an opinion anyways or 2) do not understand what it is, but ego prevents them from admitting it... or 3) both. Just ask very basic questions about what crypto is and why it was created, then you can definitely see the cracks in their argument and holes in their knowledge. Or they are just permabear who is just shorting everything since March 2020.
No, I do not think Bitcoin is going away anytime soon. These boring periods of consolidation are when big wallets accumulate. From a very big view, Bitcoin's big channel is an uptrend. To compensate for the volatility, I had to use the logarithmic scale since that scale is specifically used to account for volatility over a long period of time. I am in the camp that this will be an extended cycle for Bitcoin. More shake outs and consolidation to crush bullish sentiment. People will likely chase gold and silver while Bitcoin consolidates for the next move up.
The crypto market is a separate market from equities. The two things that link them together are 1) broad market liquidity levels and 2) broad monetary policies such as interest rates and financial leverage. Remember, crypto is about chess, not checkers. It does crash every 4-5 years. If so, I'll be buying more around the 200 week SMA. I literally gave my wife my hard wallet and told her to store it away from me for a year. It's because the volatility will mess up your view of the big picture and make you panic sell. I can see that was the right decision. In the next cycle's crash, I'll be doing that again and pretty much force patience upon myself. It's like locking the junk food away when on a diet.
Comment:
Hashcash... not bitcash.