{"id":85794,"date":"2018-12-13T12:19:20","date_gmt":"2018-12-13T20:19:20","guid":{"rendered":"https:\/\/lifeboat.com\/blog\/?p=85794"},"modified":"2018-12-14T08:09:10","modified_gmt":"2018-12-14T16:09:10","slug":"btc-plunge-why-i-dont-worry","status":"publish","type":"post","link":"https:\/\/lifeboat.com\/blog\/2018\/12\/btc-plunge-why-i-dont-worry","title":{"rendered":"BTC plunge: Why I don\u2019t worry"},"content":{"rendered":"<p class=\"mentions-texteditor__content\">Join me for a quick review of the spikes &amp; dips in the Bitcoin exchange rate. This time, it\u2019s all about one very simple chart. <sub>[continue below graphic]\u2026<\/sub><\/p>\n<p><\/p>\n<p class=\"mentions-texteditor__content\">The chart below shows a history of BTC price spikes, dips and recovery. Click to enlarge, then start at the top\u2014and move down.<\/p>\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\n<li class=\"mentions-texteditor__content\">Consider the percent-pullback after each spike (red label)<\/li>\n<li class=\"mentions-texteditor__content\">Think about the stellar rebound after each drop (green label)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><a class=\\'blog-photo\\' href=\"http:\/\/awildduck.com\/wp-content\/uploads\/2018\/12\/BTC-spikes-dips.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-5773\" src=\"http:\/\/awildduck.com\/wp-content\/uploads\/2018\/12\/BTC-spikes-dips-300x300.jpg\" alt=\"\" width=\"258\" height=\"258\" \/><\/a>The table at right illustrates why I do not get too worked up over the plunge in the BTC exchange rate. There are <em>no fundamental flaws in Bitcoin math or mechanisms<\/em>, the market need for benefits conveyed by Bitcoin is terrific, and popular arguments against Bitcoin are severely flawed. Skeptics and Critics typically say this:<\/p>\n<blockquote><p>\u201cEven if blockchain currencies are beneficial and inevitable, Bitcoin can be displaced by another, better cryptocurrency.\u201d<\/p>\n<p>\u2014Or\u2014<\/p>\n<p>\u201cA viable crypto may emerge\u2014but it will be one that is backed by a tangible asset or issued\/sanctioned by government.\u201d<\/p><\/blockquote>\n<p>These arguments are false. They are made by individuals who don\u2019t yet fully appreciate a distributed, consensus mechanism and, especially, its relationship with trust, value, government and free markets.<\/p>\n<p>What Bitcoin currently lacks is education, familiarity, standards, simple commercial tools (built upon clear analogies), definitive best practices, a widespread understanding of multisig &amp; security, and limited recourse for certain commercial &amp; retail transactions. But Bitcoin is still an infant, just like the early TV or the early telephone. All of these are under development\u2014without a hint of significant obstacles. Even the messy process of democracy among the various stakeholders is heading toward harmony (miners, developers, vendors, exchanges and consumers).<\/p>\n<p>Of course, I am bullish on Bitcoin, and this may color my analysis. But, I try hard to keep an open mind. There have been moments in its history where I have questioned the market need or the potential for a setback in politics, legislation, or the mechanism itself. Those doubts are in the past. Bitcoin has demonstrated the elegance and value of the blockchain\u2014and the ability to evolve beyond the blockchain with SegWit and Lightning Network. It has achieved a fluid, robust and growing two-sided market.<\/p>\n<p>No one holding assets likes to see a big price pullback. It\u2019s natural to look at the market as if we each got in at the peak\u2014and then tally the \u201closses\u201d. But I, for one, am not glancing toward the exit. I see the future and I sleep well at night. I am comfortable participating in the Bitcoin era.<\/p>\n<hr \/>\n<p><p class=\"ui_qtext_para\"><span style=\"font-size: 9pt\"><em><a href=\"http:\/\/bitcoinreferee.com\/\" target=\"_blank\" rel=\"noopener\">Philip Raymond<\/a> co-chairs <\/em><a href=\"http:\/\/crypsa.org\/\" target=\"_blank\" rel=\"noopener nofollow\"><em>CRYPSA<\/em><\/a><em>, hosts the <\/em><a href=\"http:\/\/vanquish.com\/_domains\/crypsa\" target=\"_blank\" rel=\"noopener nofollow\"><em>Bitcoin Event<\/em><\/a><em> and is keynote speaker at <\/em><a href=\"http:\/\/www.cryptocurrencyexpo.com\/\" target=\"_blank\" rel=\"noopener nofollow\"><em>Cryptocurrency Conferences<\/em><\/a><em>. He advises <a href=\"https:\/\/www.eventbrite.com\/e\/the-disruption-experience-sneak-peek-tickets-50106332389?aff=eand\" target=\"_blank\" rel=\"noopener\">The Disruption Experience<\/a> in Singapore, sits on the <\/em><a href=\"https:\/\/lifeboat.com\/blog\/author\/phil-raymond\" target=\"_blank\" rel=\"noopener nofollow\"><em>New Money Systems board<\/em><\/a><em> of Lifeboat Foundation and is a <\/em><a href=\"https:\/\/www.quora.com\/profile\/Ellery-Davies\" target=\"_blank\" rel=\"noopener nofollow\"><em>top writer<\/em><\/a><em> at Quora. <\/em><a href=\"http:\/\/bitcoinreferee.com\/\" target=\"_blank\" rel=\"noopener nofollow\"><em>Book a presentation<\/em><\/a><em> or consulting engagement.<\/em><\/span><\/p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join me for a quick review of the spikes &amp; dips in the Bitcoin exchange rate. This time, it\u2019s all about one very simple chart. [continue below graphic]\u2026 The chart below shows a history of BTC price spikes, dips and recovery. Click to enlarge, then start at the top\u2014and move down. Consider the percent-pullback after [\u2026]<\/p>\n","protected":false},"author":353,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1318,1761],"tags":[2161,2867,3219,2815,3220,3221,3222],"class_list":["post-85794","post","type-post","status-publish","format-standard","hentry","category-bitcoin","category-cryptocurrencies","tag-bitcoin","tag-bitcoin-correction","tag-bitcoin-price-pullback","tag-btc","tag-btc-correction","tag-btc-price-drop","tag-price-plunge"],"_links":{"self":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/85794","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/users\/353"}],"replies":[{"embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/comments?post=85794"}],"version-history":[{"count":3,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/85794\/revisions"}],"predecessor-version":[{"id":85822,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/85794\/revisions\/85822"}],"wp:attachment":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/media?parent=85794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/categories?post=85794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/tags?post=85794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}