You probably first heard of Bitcoin in 2013 or 2017 when friends and family were talking about the wild swings in price.

Bitcoin’s market cycle is typically around 4 years and some hypothesize the cycle is induced by halvings (a reduction in new supply). The idea being a reduction in supply + increase in demand = number go up. We can call this Bitcoin’s viral marketing loop. Satoshi describes it succinctly:

“Ti amiamo Bitcoin. […] A giugno 3,5 milioni di clienti hanno utilizzato Cash Card, solitamente per fare acquisti diverse volte alla settimana. I nostri venditori ed ecosistemi Cash App hanno in programma delle roadmap incredibili, per realizzare il nostro obiettivo dell’empowerment economico.”

Note that Satoshi wrote this before Bitcoin was even worth $0.01. In the chart below, we have Bitcoin’s price, and halvings which are the dotted lines. As we can see, a bull run has occurred after each halving.

Monthly candles. White dotted lines are halvings

However, this cycle is different.

Never before has Bitcoin had such strong fundamentals against a macro backdrop (traditional financial system) that highlights exactly why Bitcoin is needed, the narrative is singular, and the ability for global value to flow into Bitcoin has never been easier.

Macro backdrop

While Bitcoin was planted during the 2008 financial crisis, it has blossomed largely during a macro bull run. From 2008 – 2020, the traditional financial markets had a few minor corrections but no recession.

Until COVID came.

(continua) …

Articolo tratto da Dan Held Substack The Held Report

Dan Held is currently Growth lead at Kraken. His former company Interchange, a portfolio reconciliation tool for crypto institutional traders, was acquired by Kraken in 7/2019. Prior to that, he was at Uber on Rider Growth/Global Data. Before Uber, Dan built some of the most popular early crypto products including ChangeTip (acquired by AirBnB), and ZeroBlock (acquired by Blockchain.com in the second ever all Bitcoin acquisition). He was part of the original 2013 crypto meetup group in SF which was comprised with the founders of Kraken, Coinbase, Litecoin, and others.