7 Misconceptions About Bitcoin
I initially covered Bitcoin in an article in autumn 2017, and was neutral-to-mildly-bearish for the intermediate term, and took no position.
The technology was well-conceived, but I had concerns about euphoric sentiment and market dilution. I neither claimed that it had to go lower, nor viewed it bullishly, and merely stepped aside to keep watching.
However, I turned bullish on Bitcoin in April 2020 in my research service at about $6,900/BTC and went long. It had indeed underperformed many other asset classes from autumn 2017 into spring 2020, but from that point, a variety of factors turned strongly in its favor. I then wrote a public article about it in July when it was at $9,200/BTC, further elaborating on why I am bullish on Bitcoin.
That July article received a lot of press, and the CEO of MicroStrategy (MSTR), the first publicly-traded company on a major stock exchange to put part of its cash position into Bitcoin, stated that he sent that article among other key resources to his board of directors as part of his team education process. It’s written with institutional readers in mind, in other words, in addition to retail investors.
With a price tag of over $15,000/BTC today, Bitcoin is up over 120% from the initial price at my April pivot point, and is up over 60% from July, but I continue to be bullish through 2021. From there, I would expect a period of correction and consolidation, and I’ll re-assess its forward prospects from that point.
Naturally, I’ve received many emails about Bitcoin over this summer and autumn. I’ve answered several of them via email, but figured I would summarize the most popular ones into a quick article on the subject. These are common misconceptions, risks, or questions. All of which make sense to ask, so I do my best here to address them as I see it.
If you haven’t read it, I’d recommend reading my July Bitcoin article first.
Source: Lyn Alden