December 07, 2021

[Editor's Note: Bitcoin's volatile nature was in full display ans BTC crashed 20% in 30 minutes. While the overall belief of All ABout Bitcoin editors is bullish, we are keenly aware of its volatility. Everyone needs to invest with a longer term horizon (2-3 years).

Now with the news...

UK Government Explains Investing In Bitcoin

To understand bitcoin prices, I believe it is useful to understand the '4-year cycle'. The long-term cycle of bitcoin price movements centres around the 'halving event'.

The halving event is when the reward for mining bitcoin transactions is cut in half. This consequently halves the rate at which new bitcoins come into circulation. As stated in the table below, the last halving event occurred in May 2020 and the next is expected in early 2024.


Epic Crash Hits Crypto Markets As Bitcoin Plummets to $43,500 in Matter of Minutes

A rough weekend for crypto traders is underway, with Bitcoin crashing more than 16% from $52,000 to $43,500 in the span of about thirty minutes. The top cryptocurrency bounced off the bottom and is now at $47,190 at time of publishing.


Money at the Speed of Thought: How 'Fast Money' Will Shape the Future

Around 2008, an ambitious startup decided to dig a tunnel from Chicago to New York. It would be an arduous and expensive task, with a final price tag of $300 million. But the tunnel would move spectacularly valuable payloads at unprecedented speeds, and customers would pay handsomely for the privilege.

The tunnel was not, however, for a new highway, or a high-speed rail line, or a gas pipe. It would not move goods or people or raw materials. In fact, a tall person would have a hard time standing up in it.


Macro Guru Raoul Pal Says Crypto Bull Market Will Take the Path of Most Pain - Here's His Outlook

"Everybody's kind of got in their heads that the cycle finishes in December because that's what it did in 2013, and that's what it did in 2017, so my guess is we probably have a sell-off and then it rips again because that is the path of most pain and markets tend to have the path of most pain.

Why is it going up right now? Because the institutions aren't in and there's no ETF (exchange-traded fund), so retail aren't in. The path of most pain is it going up while people aren't in, but the path of most pain would be a bunch of people sell out thinking they're being clever and the market goes up."


Why Have Both Bitcoin and Stocks Crashed? (14 minute video)

This video discusses how the Fed's more hawkish rhetoric is causing a sell-off in stocks, Bitcoin, and other "risk assets." Jerome Powell (Fed Chairman) has been given a free pass, through his renomination to the Fed, to pursue a more hawkish policy, in an effort to keep gas prices and rents from exploding further, causing political fall-out. It's unlikely that this will be able to continue for very long before something in the system blows up. Perhaps it's a stock market crash (that hurts tax receipts and consumer spending), or perhaps it's a back-up in Treasury yields while stocks are still selling off.

Either way, the Fed will be forced to reverse course and start up the money printers again on full throttle in order to clean up the mess. The financial system is too levered to be able to handle tighter monetary policy, as it still could in 1980 under Paul Volcker, when debt/GDP levels were only 30%.

Bitcoin will continue to grow and take market share, regardless of Fed policy.


Need Cool Gifts For Kids? This Video Shows What Kids Really Want!

Bitcoin Corrections Are Normal During Bull Runs (30 min. Video)

Bitcoin is a volatile asset. Every rise includes massive sell offs. And those who buy on margin (leverage) get wiped out...and often they repurchase. This video is from CryptosRus.


Here's What Led to the $500 Billion Crypto Market Mayhem Saturday

The crypto market recorded its worst day in six months as the majority of cryptocurrencies bled out in double digits. The crypto market mayhem saw the biggest liquidation day in 15 months as over $2.5 billion worth of leveraged positions got liquidated over the past 24-hours. The overall market cap fell by nearly 20% with over $500 billion getting wiped out in a matter of couple of hours.


Why Does An Increase In BTC Price Also Increase Demand For It?

[Editor's Note: This is a could description of something called a *Venlen Good*. Most things experience a decrease in demand as the price increases. But there is a category of goods that demand increases as the price increases. Learn why in this article or watch the video that the article is based.]


El Salvador's President Tells Peter Schiff Benefit of Switching Gold Reserves to Bitcoin

The president of El Salvador, Nayib Bukele, has revealed that his country holds 44,106 oz. of gold in its reserves that has lost some value over the past year. He told gold bug Peter Schiff that if El Salvador had sold its gold and bought bitcoin last year, it would now be worth $125 million more.


Bitcoin Doesn't Work as a Form of Payment, According to Celsius CEO Alex Mashinsky - Here's Why

I'd much rather be in a scenario where the dollar remains as the reserve currency but Bitcoin continues to do very well...

The dollar is a phenomenal form of payment. It's a horrible store of value and Bitcoin is a phenomenal store value, but it's a pretty bad form of payment."

Mashinsky highlights that it is not a great idea to use Bitcoin to pay for goods and services as he says that people who have done so in the past often regret making the transaction.

"If you fell for Elon Musk's deal where he gave you a Tesla for two or three Bitcoins, obviously you hate driving that Tesla because you would in a second go back and take those three Bitcoins and return the Tesla, which lost value during the same period of time. Anything you bought with Bitcoin in the last 10 years, you rather have the Bitcoin back and would have paid in US dollars. That's really the crux of the matter that you cannot use it as a form of payment or cannot use it in a way that makes you happy about the transaction."