Humble Bitcoiners!
Thank you for joining us for yet another glorious Bitcoin Magazine newsletter. Sit down and get ready for your daily dose of Bitcoin signal! |
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Today's Rundown: - Manipulation Resistant: How futures market is used to manipulate the price, and how it won't work against Bitcoin long term.
- Hyperinflation:Â In the cusp of hyperinflation, Bitcoin is dilution proof.
- HODL Meme:Â Eight years ago, "HODL" was born in Bitcointalk.
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Bitcoin Futures Markets Explained And The Defense Against Bitcoin Price Manipulation
By Arman The Parman Futures markets in any asset can be used to manipulate it’s spot price, especially if the perpetrator has an infinite (or huge) source of cash. Basically, someone could sell futures contracts at a loss, using their unlimited amount of fiat currency as collateral, and wait patiently for the spot price to move in their favor due to arbitrage, as traders would prefer to buy those contracts rather than the asset itself, because, ultimately, they are a promise for the asset.Â
This scheme has been very successful in suppressing gold’s price. Most people prefer, or can only trade paper gold, because moving and storing real gold is complicated, hence, the amount of future claims on gold exceeds by far the total real gold available and, as long nobody asks for that gold physically, paper gold can always be created and sold at any price. This strategy is likely being used by exchanges (or external entities) trying to manipulate Bitcoin’s price, however, it might not be that effective long term as Bitcoin can be transacted instantly and stored easily. Do not keep Bitcoin at exchanges, it allows them to manipulate the price.Â
"While this manipulation is effective against gold, it won’t work for long against Bitcoin. This is because bitcoin is easy to take into custody and to spend directly, peer to peer, to anyone in the world, instantly. Gold isn’t. Of course, I’m not saying you can’t take custody of gold – you can, but it’s not commonly done." Arman The Parman |
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Hyperinflation Will Change Everything, But Bitcoin Is Dilution Proof
By Leo Now, more than ever, It is important to acknowledge what inflation is and what you can do to protect yourself from it. Governments have been very successful in convincing their people that inflation is inevitable and in some cases even good for the economy, however, it has always ended badly for any society submerged in it. Hyperinflation has always led to a wider gap between the rich and the poor, crime increase, rebellion and in some cases, even the collapse of an entire civilization.Â
Even though the official inflation rate of 6.8% specified by the government is grossly underestimated (14% if calculated with the 1980s CPI basket), it is still the highest in over 30 years and everything indicates that it will continue deteriorating since the main reason for it is the expansion of the money supply, thing that won’t stop any time soon because we have reached a point where the government can’t operate without it. To protect ourselves we must own hard assets resistant to money printing, such as Bitcoin.Â
"To put it simply… the more the money printer goes brrr, the higher the inflation." - Leo |
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1. Luxor, the software company, has introduced a new version of its Hashrate Index, which provides insights into the bitcoin mining industry.
2. Over 80% of the young millionaires own bitcoin and cryptocurrency, and 53% have at least half their wealth in such assets.
3. Bitcoin offers an incredible advantage for America as we head into the future — and the opportunity cannot be squandered.
4. Compute North bitcoin miner quickly powered down part of its data center to provide needed relief to Nebraska’s energy grid.
5. Lamar Wilson sit down to discuss Bitcoin, onboarding new users and freedom from censorship.
6. Recreating legacy systems on top of bitcoin is not the goal — designing to engage individuals in new ways should be.
7. The bill, which does not make bitcoin legal tender in Paraguay, will be discussed by the country’s Chamber of Deputies in 2022.
8. What the ratio of short-term bitcoin holders to long-term bitcoin holders can tell us about the market. |
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Eight Years Since The Meme Was Born, We're Still Hodling Bitcoin
By Mark Goodwin This weekend marks eight years since the famous meme "HODL" was born. In a post inspired by whisky on BitcoinTalks, Gameyuubi, wrote a piece stating why he was not selling and decided to "hodl" instead.
“In a zero-sum game such as this, traders can only take your money if you sell.” - Gameyuubi.
At the time when it was written, the price was experiencing huge volatility swings. Bitcoin found itself on a downtrend after having euphorically risen up tp over $1,100 for the first time in history. Times of volatility can be difficult for the players as it is not usual to experience hard price swings in traditional markets. The "HODL" strategy, came out as a necessity to become a movement of people who constantly accumulate encouraging others to do the same and stop trading or having their assets under custody.
The strategy brings sanity for many participants helping them not turn into traders or even gamblers trying to beat a market full of short term manipulation or experienced bigger players. Since wealth is health, the "hodl" strategy simply finds a perfect balance between exposure to health volatility.
“...HODLing bitcoin is very simple, but it's not easy, it's f----ing difficult.” - American Hodl |
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By Bitcoin 2022
Bitcoin is a deep rabbit hole, some times it even feels as a never ending curse, but in general it leads to find hope in the possibility to fix the broken monetary system we all live in.
Keep stacking. |
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