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Archive for the ‘bitcoin correction’ tag

Jan 15, 2019

BTC Plunge: Why I don’t worry

Posted by in category: bitcoin

Join me for a quick review of the spikes & dips in the Bitcoin exchange rate. This time, it’s all about one very simple chart…

The chart below shows a history of BTC price spikes, dips and recovery. Click to enlarge, then start at the top—and move down.

  • Consider the percent-pullback after each spike (red label)
  • Think about the stellar rebound after each drop (green label)

This is why I do not get too worked up over the plunge in the BTC exchange rate. There are no fundamental flaws in Bitcoin math or mechanisms. The market need for the benefits conveyed by Bitcoin is terrific, and the most popular arguments against Bitcoin are severely flawed. Skeptics and Critics typically say something like this:

“Even if blockchain currencies are beneficial and inevitable, Bitcoin can be displaced by another, better cryptocurrency.”

Continue reading “BTC Plunge: Why I don't worry” »

Dec 13, 2018

BTC plunge: Why I don’t worry

Posted by in categories: bitcoin, cryptocurrencies

Join me for a quick review of the spikes & dips in the Bitcoin exchange rate. This time, it’s all about one very simple chart. [continue below graphic]…

The chart below shows a history of BTC price spikes, dips and recovery. Click to enlarge, then start at the top—and move down.

      • Consider the percent-pullback after each spike (red label)
      • Think about the stellar rebound after each drop (green label)

The table at right illustrates why I do not get too worked up over the plunge in the BTC exchange rate. There are no fundamental flaws in Bitcoin math or mechanisms, the market need for benefits conveyed by Bitcoin is terrific, and popular arguments against Bitcoin are severely flawed. Skeptics and Critics typically say this:

Continue reading “BTC plunge: Why I don’t worry” »

Jan 11, 2018

Say it again, Bitcoin Investors: “Bad News is Good News”

Posted by in categories: bitcoin, cryptocurrencies, economics, government, policy

By now, every interested news-junkie is aware that Bitcoin plummeted from $15,000 to $13,000 (USD exchange rate) on January 11, 2018. This morning, every news outlet and armchair analyst attributes the drop to the Korean government signaling that it will ban Bitcoin trading among its citizens.

With Donald Trump and Kim Jong Un butting heads over nuclear missile tests and the upcoming Winter Olympics, you would think that South Korea has other priorities than banning Bitcoin.

As with all news—except accidents—the Korean plans were known by a few insiders (in this case, government bureaucrats), and so the influence on value was bigger than the drop that occurred after the news story. In the days before this “event”, it was probably responsible for a drop of about $4500 in exchange value.

Listen up Wild Ducks! We have heard this before. On Sept 11, China announced the exact same thing. I wrote about it in the most popular article of my 7 years as Blogger: Bad News is Good News for Bitcoin Investors.

Continue reading “Say it again, Bitcoin Investors: ‘Bad News is Good News’” »

Sep 14, 2017

Bad News is Good News for Bitcoin Investors

Posted by in categories: bitcoin, cryptocurrencies, economics

Bitcoin was hit by a double whammy this week. On Tuesday, Jamie Dimon of JP Morgan declared that Bitcoin is a fraud that will “blow up”. Then, just this morning, a Bitcoin exchange in China announced that it would shut its doors in response to verbal pressure from regulators and an uncertain regulatory environment.

Don’t ya just love it when bad news breaks on Bitcoin? I sure do! It creates a buying opportunity. After all, just look at what happened after the last five bouts of bad news: [updated Oct 2017—Click to reverse colors & enlarge]

In each case, the Bitcoin exchange rate dropped—very briefly—and then climbed higher with renewed vigor. Heck it, doubled from $2400 to $4800 in just the past month! But here’s a the real question: Does either bad news events have legs? Does it spell the end of Bitcoin adoption and enthusiasm, at least for now?

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