$BTC may fall with markets in the short term, but dollar debasement and Treasury intervention in the bond market make the long-term case
Everybody knows that inflation is bad. The cost of the things that you buy has gone up and it continues to go up. Does it really matter to you if CPI, PPI, PCE are 2 or 2.5 or 3.4 or 3.1, or what the data inputs are? Or does it matter to you your steak costs more today than it did a month ago. Yes, in the very short term, Bitcoin may move down with the rest of the markets, which are obviously all dumping today on this news. But what's more important is the very phenomenon behind it. We know that eventually the government is going to have to be irresponsible and print more money. We know that the Treasury is intervening in the bond market, that is the actual long-term case for Bitcoin. All of these fabricated news headlines and numbers are actually the reason that you should buy and hold Bitcoin in the long term. I'm old enough to remember last week when we were talking about the cooked numbers that meant that they could cut rates. Now we get to talk about the slightly cooked numbers that are probably not as bad as they seem that could make them continue to raise rates.
#Bitcoin #Inflation
Everybody knows that inflation is bad. The cost of the things that you buy has gone up and it continues to go up. Does it really matter to you if CPI, PPI, PCE are 2 or 2.5 or 3.4 or 3.1, or what the data inputs are? Or does it matter to you your steak costs more today than it did a month ago. Yes, in the very short term, Bitcoin may move down with the rest of the markets, which are obviously all dumping today on this news. But what's more important is the very phenomenon behind it. We know that eventually the government is going to have to be irresponsible and print more money. We know that the Treasury is intervening in the bond market, that is the actual long-term case for Bitcoin. All of these fabricated news headlines and numbers are actually the reason that you should buy and hold Bitcoin in the long term. I'm old enough to remember last week when we were talking about the cooked numbers that meant that they could cut rates. Now we get to talk about the slightly cooked numbers that are probably not as bad as they seem that could make them continue to raise rates.
#Bitcoin #Inflation
4
Coinbase says Bitcoin should start preparing for a quantum upgrade now, but getting everyone to agree on it may be the hardest part
Something that's not bringing in new investors is fear of quantum. On October 13th, Coinbase released a technical post that said preparation should start before a quantum threat becomes certain, because network changes and wallet migrations can take years. The discussion in this paper includes flexible strategy, security designs, and staged migration. They ask the difficult questions, what to do about abandoned or inaccessible coins like Satoshi's wallets. So the real story here is that they're saying that quantum is going to be an issue. We don't know how big, and now is the time to get prepared. What I find interesting here in the whole quantum debate is that Bitcoin's hardest upgrade may actually be getting everyone to agree that it needs an upgrade. You have a lot of people who say the quantum threat is nonsense. And then there are a lot of people who think that you should sell your Bitcoin right now because quantum is going to destroy it. It's sensible to do exactly what Coinbase is, which is prepare for the worst and hope for the best. Get ready for it. It may be an issue. If it is, we will be prepared.
#Bitcoin #Quantum
Something that's not bringing in new investors is fear of quantum. On October 13th, Coinbase released a technical post that said preparation should start before a quantum threat becomes certain, because network changes and wallet migrations can take years. The discussion in this paper includes flexible strategy, security designs, and staged migration. They ask the difficult questions, what to do about abandoned or inaccessible coins like Satoshi's wallets. So the real story here is that they're saying that quantum is going to be an issue. We don't know how big, and now is the time to get prepared. What I find interesting here in the whole quantum debate is that Bitcoin's hardest upgrade may actually be getting everyone to agree that it needs an upgrade. You have a lot of people who say the quantum threat is nonsense. And then there are a lot of people who think that you should sell your Bitcoin right now because quantum is going to destroy it. It's sensible to do exactly what Coinbase is, which is prepare for the worst and hope for the best. Get ready for it. It may be an issue. If it is, we will be prepared.
#Bitcoin #Quantum
5
Bitcoin's round trip from $83K to $81K and back leaves leveraged bulls liquidated despite calling the direction right
Overnight reporting put liquidations at approximately $800 million across a rolling 24-hour window in crypto, with roughly 86% of those involving bullish positions. So first of all, people getting liquidated on a move from 83 to 81 just to see Bitcoin bounce right back to 83 is completely nonsensical and should show you the wild risks of using leverage. You can be entirely right about the direction, which is that Bitcoin may go up, but you're restricting yourself to an extremely tight timeframe, funding, and obviously an increased risk of being liquidated because you've used that leverage. Some people use 100x leverage, meaning that a 1% move in Bitcoin, which happens any given hour, liquidates your position entirely. It dropped all the way to 81, liquidated all those people and went right back to the same price. Those people could have had Bitcoin at the exact same price without leverage. They end up getting liquidated with no position while they were sleeping, just to wake up and see that Bitcoin is the exact same price as where they started.
#Bitcoin #Leverage
Overnight reporting put liquidations at approximately $800 million across a rolling 24-hour window in crypto, with roughly 86% of those involving bullish positions. So first of all, people getting liquidated on a move from 83 to 81 just to see Bitcoin bounce right back to 83 is completely nonsensical and should show you the wild risks of using leverage. You can be entirely right about the direction, which is that Bitcoin may go up, but you're restricting yourself to an extremely tight timeframe, funding, and obviously an increased risk of being liquidated because you've used that leverage. Some people use 100x leverage, meaning that a 1% move in Bitcoin, which happens any given hour, liquidates your position entirely. It dropped all the way to 81, liquidated all those people and went right back to the same price. Those people could have had Bitcoin at the exact same price without leverage. They end up getting liquidated with no position while they were sleeping, just to wake up and see that Bitcoin is the exact same price as where they started.
#Bitcoin #Leverage
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