I think something shifted in the market -- and active investors & traders would do well to adjust their mindset.
1/ We've reached a critical inflection point in bitcoin's adoption curve.
A moment wholly unique in the history of markets.
Are you ready for what comes next? 👇
#Bitcoin
I think something shifted in the market -- and active investors & traders would do well to adjust their mindset.
If they want this asset: they'll have to hustle, compete with the masses and FOMO in above ATH's.
Against a backdrop of scarcity unlike anything they've ever seen.
Their bots will not stop buying.
There isn't enough supply for all of them, and they know it.
How much appetite will strong hands have to market sell, just to run stops?
In the opening hours of the greatest bull market of their lives.
In a liquidity crisis.
This is why I think #Bitcoin goes to $35k-$40k, before a shakeout much worse than anything we've seen so far.
I’m not saying we teleport to $40k instantly.
Just small gains, pretty much every day, for many weeks.
But this scenario would not be unprecedented:
This same thing happened in 2017, when #BTC broke previous ATHs after multiple tries.
*Don't* throw risk mgmt out the window -- because we can't know for sure if I'm right.
Buy gradually -- on small pullbacks, at the weekly TWAP, BTC's time-weighted average price.
https://t.co/DSutfD4HXP
TWAP stands for Time Weighted Average Price. It is de rigeur among institutions when accumulating an asset whilst there's an absence of OTC block sellers with whom to directly match.
— Su Zhu (@zhusu) December 4, 2020
The guarantee of fill and privacy of overall size are certainly also plus points.$BTC
I will look to two metrics:
(and neither one is funding -- funding will be useless if this scenario plays out).
I consider this the alpha metric on-chain for finding local #BTC tops.
I want to see STH-MVRV print above a 1.5, then make lowers lows.
On Gemini exchange: this metric was never wrong in 2020.
Gemini whales are #Bitcoin 's secret bellweather.
(Data from @cryptoquant_com)
More from Crypto
"Blockchain technology is energy-intensive..." => No, it doesn't have to be.
Let's look at Proof-Of-Stake, an alternative to the energy-intensive Proof-Of-Work algorithm.
🧵🔽
1️⃣ A Quick Recap On Proof-Of-Work
A Proof-Of-Work algorithm requires miners to do a certain amount of work that is compute-intensive to gain access to a service or the right to do something. This algorithm, by design, also requires that the work done shall not ...
... be reusable for anything else than what it was performed for. This lies at the core of the security concept of a blockchain. To gain the right to append a new block to a chain and to get some currency as a reward, there is work to be done, and this work must be verifyable.
That work is a race between different miners. Many miners try to compete and to be the first to find the answer to a problem presented to them. This implies that a lot of energy is wasted as only the first correct solution is accepted.
You can find a more detailed thread on Proof-Of-Work
Let's look at Proof-Of-Stake, an alternative to the energy-intensive Proof-Of-Work algorithm.
🧵🔽
1️⃣ A Quick Recap On Proof-Of-Work
A Proof-Of-Work algorithm requires miners to do a certain amount of work that is compute-intensive to gain access to a service or the right to do something. This algorithm, by design, also requires that the work done shall not ...
... be reusable for anything else than what it was performed for. This lies at the core of the security concept of a blockchain. To gain the right to append a new block to a chain and to get some currency as a reward, there is work to be done, and this work must be verifyable.
That work is a race between different miners. Many miners try to compete and to be the first to find the answer to a problem presented to them. This implies that a lot of energy is wasted as only the first correct solution is accepted.
You can find a more detailed thread on Proof-Of-Work
Proof-Of-Work is the name of a cryptographic algorithm that is used for some blockchains when new blocks are to be appended to the chain.
— Oliver Jumpertz (@oliverjumpertz) April 3, 2021
Let's take a higher-level look at how this one works, shall we?
\U0001f9f5\U0001f53d
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brew / bru : / to make (beer, coffee etc.) / verb: begin to develop 🌱
A place for you to enjoy premium content while supporting your favorite creators. Sort of like a ‘Consumer-facing Patreon’ cc @jackconte
(we’re still working on the pitch)
3/ So, why be so transparent? Two words: launch strategy.
jk 😅 a) I loooove doing something consistently for a long period of time b) limited downside and infinite upside (feedback, accountability, reach).
cc @altimor, @pmarca
4/ https://t.co/GOQJ7LjQ2t domain 🍻
It started with a cold email. Guess what? He was using BuyMeACoffee on his blog, and was excited to hear about what we're building next. Within 2w, we signed the deal at @Escrowcom's SF office. You’re a pleasure to work with @MichaelCyger!
5/ @ycombinator's invite for the in-person interview arrived that evening. Quite a day!
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