Connect with us

Crypto

Finding Bitcoin Signal Through The Noise – Bitcoin Magazine

Published

on

Sensationalized media draws page views and attention, but useful Bitcoin content is available to those who are willing to lower their time preference.
I was hit with a little inspiration today when Nathaniel Whittemore covered a couple New York Times hit pieces targeted at Bitcoin in a recent episode of his podcast, “The Breakdown.” The first article attempted to dispute Bitcoin's decentralization by using mining stats from the early days when very few people were mining. A second article by Paul Krugman attempted to disparage Bitcoin by saying it was essentially useless. That coming from a Nobel Prize-winning economist who is infamous for an article about the internet being a passing fad. Why do we trust these people, let alone even care what they think?
The difference between signal and noise is simple, but difficult to see during times of panic like today or euphoria when prices are going parabolic. In my eyes, price in and of itself is noise. Price is made on the margins; buyers and sellers outnumbering each other for short periods of time. It tells you nothing about network strength or long term adoption. Price stories are nothing more than attempts to generate clicks by inspiring fear or greed based on short-term price movements.
Signal, on the other hand, is deeper; a look under the hood, if you will. Stories about hash rate hitting an all-time high, implying the network is more secure than ever. Stories showing unique bitcoin addresses hitting an all-time high, indicating continual growth of users. Stories about a Bank of America poll indicating 90% of Americans plan to invest in bitcoin over the next year, demonstrating continuing adoption and further growth. All of these topics have been covered in the past few days, regardless of the price dip. Signal.
Signal about Bitcoin happens every single day, yet we seem to be inundated with fear, uncertainty and doubt (FUD) hit pieces and crystal ball technical analysis predictions about the end of the world. I’m here to remind you that most media companies are all about the clicks. Clickbait drives engagement and engagement drives advertising revenue. Don’t let these headlines fool you, there is signal hidden everywhere and there are plenty of valuable articles containing much more than meets the eye.
(Screenshot/BTCNews)
I noticed a few days ago that, within minutes, Benzinga had published two articles: one about a whale exchange deposit and the other about a whale withdrawal. Bezinga will often price the deposit in U.S. dollars, while keeping the withdrawal in bitcoin terms. The articles are nearly identical for each type of transaction and will characterize exchange deposits as a bearish signal, while describing exchange withdrawals as a prudent long-term holding technique.
“Why it matters: Cryptocurrency transfers from wallets to exchanges is typically a bearish signal.”
Versus:
“Why it matters: Bitcoin ‘Whales’ (investors who own $10 million or more in BTC) typically send cryptocurrency from exchanges when planning to hold their investments for an extended period of time. Storing large amounts of money on an exchange presents an additional risk of theft, as exchange wallets are the most sought-after target for cryptocurrency hackers.”
Perhaps more interesting, if you take the time to do the math, you can see as plain as day that the exchange withdrawals greatly outweigh the deposits. In this particular snippet, by nearly $200,000,000. Nine whole digits. So where’s the bearish signal here?
They could have aggregated over days or weeks and written a thoughtful article about net whale movements to really dive into actual signal, but they don’t. Because much like the New York Times, the headlines and clicks are all that matter. They simply want the volume.
Technologically-driven deflation, Jeff Booth’s thesis as described in his book, “The Price of Tomorrow,” is playing out right before our eyes. The internet has disintermediated the access and distribution of information. A benefit for billions, but also a double-edged sword which has slashed once-great media companies' financial positions, forcing them to fight tiny publishers like Benzinga for your attention.
It’s one of the reasons I like Bitcoin Magazine so much. They have plenty of articles criticizing Bitcoin. They do it all the time, but it’s fundamentally different in the sense that you won’t find it with a flashy headline to drive engagement alone. I see it as a means to drive the network forward: experts presenting their case to develop conversation with other experts. Not a thinly-veiled hit piece which is easily disproved or obviously biased. Download the Carrot App and Bitcoin Magazine will even pay you to read their articles. Value for value; a mutually beneficial transaction. Can you say the same for Benzinga? The New York Times? I couldn’t even access the New York Times articles because they’re hiding behind a paywall. A convenient little hurdle to reinforce the echo chamber.
Finding real signal through all this noise seems to be getting harder and harder, especially in this perceived bear market. All I can say is, don’t trust the headlines. Especially when they’re shocking or sensational. Media companies follow their incentives just like anybody else. When the incentive is to drive as much engagement as possible, sometimes that juicy headline turns out to be completely opposite of what was actually written.
This is a guest post by Mickey Koss. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.

source

Crypto

Bitcoin Is '100 Times Better Than Gold,' Michael Saylor Says – Here's Why | Bitcoinist.com – Bitcoinist

Published

on

Bitcoin and gold are both valuable assets that can be used to protect against inflation; nevertheless, there are important differences between the two in terms of their history, accessibility, and other sources of demand.
Gold, undoubtedly, has a lengthy history and solid basis, while Bitcoin has barely more than a decade of existence to prove its worth as an inflation hedge.
In November of last year, the price of a single BTC soared beyond $65,000, setting a new record high. This increase was related to the introduction of a Bitcoin exchange traded fund in the United States; while others during the year were due to events involving Tesla and Coinbase, respectively.
As of this writing, BTC is trading at $$19,058.84, down 5.5% in the last seven days, data from Coingecko show, Sunday.
Despite the fact that BTC has lost over 73% of its value since its all-time high in 2021, crypto bull and MicroStrategy co-founder and CEO Michael Saylor is unfazed.
Not only does he think the digital coin will regain its former glory, but he also thinks the cryptocurrency has a lot of room to grow beyond its current high point.
While the value of the most popular cryptocurrency in the world has been falling in recent weeks, MicroStrategy has been buying the dip. With 130,000 BTCs in its vault, it is sitting on nearly $4 billion of the crypto.
“I think that the next logical stop for Bitcoin is to replace gold as a non-sovereign store of value asset and gold is a $10 trillion asset as we speak. Bitcoin is digital gold, it’s 100x better than gold,” Saylor said during the Money Festival hosted by MarketWatch on Wednesday.
Bitcoin has a market cap of around $365 billion, according to data by TradingView on Sunday.
And during the festival’s Best New Ideas segment, Saylor didn’t hold back when he predicted the crypto’s price tag may reach $500,000 within the next decade.
“The half-life of money in crypto is forever. You can move it on billions of computers at the speed of light. So if Bitcoin goes to the value of the yellow metal, it’s going to $500,000 per coin, and I think that happens this decade,” Saylor pointed out.
According to MarketWatch, Saylor has around 17,732 Bitcoins that he purchased for around $9,500. Meanwhile, MicroStrategy’s stock price has fallen almost 65% this year, just like Bitcoin.

For updates and exclusive offers enter your email.
Freelance writing is Jet’s other cup of tea. When not on his computer, he unwinds with a cold bottle of beer and laughs with his son over cartoons. Other than that, he’s just like everybody else who wants to be happy with their life.
Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.
© 2021 Bitcoinist. All Rights Reserved.

source

Continue Reading

Crypto

Cryptocurrency prices today under pressure: Bitcoin falls 3%, ether 6%; Uniswap gains | Mint – Mint

Published

on

  • The global cryptocurrency market cap today remained below the $1 trillion mark

Cryptocurrency prices today came under pressure after the US Federal Reserve delivered another big interest-rate hike and warned of economic pain from the aggressive policy tightening still to come. The Fed’s determination to raise rates to levels that hammer inflation at the cost of sliding asset prices sent a chill across global markets.
Bitcoin, the world’s largest and most popular cryptocurrency, was trading more than 2% lower at $18,627, came close to dropping below $18,000 level. The global crypto market cap today remained below the $1 trillion mark, as it was down over 2% in the last 24 hours at $943 billion, as per CoinGecko. On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, continued to underperform and fell more than 6% at $1,260.
“Bitcoin, Ethereum, and most cryptocurrencies traded lower on late Wednesday after the Federal Reserve raised interest rates by 75 basis points marking the third consecutive time this year. BTC continues to struggle below the $19,000 since bears are more powerful than bulls in the market. The second largest crypto, Ethereum was seen changing hands above the $1,200 level. The price of ETH has been dipping since the Merge took place as miners continued to dump their ETH in the market coupled with macroeconomic factors. If the selling pressure from miners increases, ETH is likely to fall below the $1,000 level,” said Edul Patel, CEO and Co-founder of Mudrex.
Meanwhile, dogecoin price today was also trading about 3% lower at $0.05 whereas Shiba Inu slipped more than a per cent to $0.000011. Other crypto prices’ today performance also declined as XRP, Stellar, Solana, Polygon, Avalanche, Binance USD, Polkadot, Litecoin, Apecoin, Cardano, Chainlink, Tron, Tether prices were trading with cuts over the last 24 hours, whereas Uniswap gained.
Such a backdrop offers little respite for crypto markets. They were already reeling from a $2 trillion plunge from a 2021 record high, an unraveling pockmarked with blowups such as the Three Arrows Capital hedge fund and the Terraform Labs project — whose co-founder Do Kwon is wanted by authorities.
(With inputs from agencies)
 
Download the Mint app and read premium stories
Log in to our website to save your bookmarks. It’ll just take a moment.
You are just one step away from creating your watchlist!
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
Your session has expired, please login again.
You are now subscribed to our newsletters. In case you can’t find any email from our side, please check the spam folder.
This is a subscriber only feature Subscribe Now to get daily updates on WhatsApp

source

Continue Reading

Crypto

Bitcoin's Accumulated Momentum Is Going To Be Hard To Stop – Bitcoin Magazine

Published

on

While "the smartest people in the room" scan the horizon, bitcoiners are out there actually building the future they want to live in.
The below is a direct excerpt of Marty's Bent Issue #1259: "Bitcoin is action. The accumulated momentum is going to be hard to stop." Sign up for the newsletter here.
This morning I listened to a recent Macro Voices podcast with Brent Johnson from Santiago Capital. It was a very good conversation about the state of the global economy, particularly focused on the dollar's relative strength against other currencies and how things may play out as the dollar continues to strengthen as prophesied by the "Dollar Milkshake" theory. Here's a link to the episode for those interested.
Toward the end of their discussion Erik (the host) and Brent make it clear without saying anything explicitly that it is insane that global markets are essentially beholden to the whims of a very select few people, central bankers, out of the billions who are alive on this planet. The fact that the world hinges on the cryptic language of people who are completely disconnected from reality and do not suffer the consequences of their actions is a bit baffling. With that being said, what I'd like to focus on is the fact the Erik and Brent ended their conversation with a brief detour to discuss the next world reserve currency. Both gentlemen acknowledged that it would likely be a cryptocurrency – likely produced by one of the governments or a coalition of governments – and will certainly not be bitcoin.
To your Uncle Marty, this is an incredibly hilarious line of thinking from a couple of individuals who seem to "get it" in regards to the fact that the fiat system is doomed for failure and it's failure is being driven by incompetent central planners. To think that the solution to bad central planning from an incompetent group will be better central planning from the same group via a fresh slate a CBDC or something like it would provide. Even funnier is the fact that they emphatically proclaim that bitcoin most certainly will not become the dominant money in the world while deriding "bitcoin maximalists". This is our edge, freaks.
While "the smartest people in the room" scan the horizon waiting to place their bets on something that hasn't materialized yet and is sure to end in failure if it ever does because it will suffer from the same centralized attributes that doomed the dollar, bitcoiners are out there actually building the future they want to live in. The macro mensches of the world can continue to sit on the sideline and pontificate about what they think will come to market. Bitcoiners will continue to act and bring their distributed, censorship resistant, sound money to market. And the headstart bitcoin has amassed is approaching insurmountable. It is a step-function improvement on the incumbent monetary system in every way.
It's provably scarce and extremely hard to change.
You can send it over the internet.
You can divide more granularly.
It is extremely hard to prevent someone from receiving or sending bitcoin if used correctly.
And, what might be the most underappreciated aspect, it is beginning to become an integral part of the energy sector. And as we're finding out now energy is pretty damn important. Arguably the most important asset on the planet. Bitcoin becoming an essential for energy producers makes it significantly harder to kill from a logistical and political perspective.
We are so early.

source

Continue Reading

Trending

Copyright © Diaily Meta News