By Ann Hsu | Chief Index Analyst, Chain Hill Capital
This article was written by Ann Hsu of Chain Hill Capital (Qianfeng Capital), please contact the official account of Chain Hill Capital for reprinting.
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Bitcoin has been killed more than 300 times
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Some cases where Bitcoin was declared dead Source: 99bitcoins
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Network robustness continues to grow
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Bitcoin network computing power source: coinmetrics
The computing power of the Bitcoin blockchain network has experienced several short-term corrections, and then the computing power has hit a new high. Behind the continuous computing power investment of miners is the affirmation of the network consensus and the recognition of future development potential. Computing power is the core of POW cryptocurrency security. The higher the level of computing power, the more miners involved in maintaining the blockchain network, the more difficult it is for the network to be attacked, and the stronger the robustness of the network.
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The user base is steadily expanding
After the end of the last round of bull market, a large number of investors who received orders at high prices were forced to cut their meat and leave the market in the cold winter of currency prices, resulting in a large number of Bitcoin addresses being emptied, and the number of active addresses and non-zero addresses continued to decline. Since 2020, although Bitcoin has fluctuated violently under the influence of the new crown pneumonia and the global financial market, due to the arrival of the third halving and the deteriorating international economic environment boosting the demand for safe haven, more and more investors Flood into the bitcoin market.
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Number of Bitcoin non-zero addresses Source: glassnode
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Value recognition continues to rise
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Grayscale Bitcoin Trust holdings and Bitcoin price Source: pro.bybt.com
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Investor structure of Grayscale Bitcoin Trust in the third quarter of 2020 Source: grayscale
Bitcoin holdings of public companies/institutions Source: bitcointreasuries.org
Bitcoin holdings of public companies/institutions Source: bitcointreasuries.org
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Crisis Rapid Recovery Capabilities
In March 2020, the cryptocurrency market was affected by the resonance of the global financial market, and Bitcoin experienced a short-term rapid drop, falling by more than 40% within 24 hours, becoming the biggest black swan event in the Bitcoin market this year.
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Three types of factors cause the public to misunderstand Bitcoin
Facts have proved that Bitcoin not only did not die as scheduled according to the media's intentions, but developed smoothly. Bitcoin has vividly demonstrated its powerful Nirvana rebirth ability with repeated "death" events. After experiencing regulatory suppression, plummeting, hard forks and various doubts, the robustness of the Bitcoin network has been continuously strengthened, and the consensus group is getting stronger. It is getting bigger and bigger, its value continues to be recognized, and it has the ability to quickly repair in a crisis. These are the manifestations of Bitcoin's anti-fragility. The reason why the public misunderstands Bitcoin can be classified into the following three reasons:
1. Cognitive inertia.We live in a centralized world, most people’s wealth is kept by banks, our credit needs to be proved by a third party, and our knowledge system needs to be proved by school qualifications or skill certificates. Our daily life has become accustomed to relying on the trust of third parties, forming a cognitive inertia that has been accumulated for thousands of years. Once switched to the non-centralized Bitcoin world, many people cannot get out of the existing cognitive inertia.
2. Learning threshold.For ordinary people, the learning threshold of Bitcoin is quite high. The underlying knowledge structure of Bitcoin involves economics, numismatics, computer science, cryptography, game theory, etc. For most people, to have a deep understanding of Bitcoin requires at least an objective understanding of these fields at the same time, learning The bar is pretty high. People are lazy, learning difficult knowledge is suffering, who would not want to be comfortable, so this is anti-human.
3. Investment mistakes or people around you make investment mistakes.About Chain Hill Capital
About Chain Hill Capital
Supported by a professional team with multicultural backgrounds, members of the core departments - Investment Research Department, Trading Department, and Risk Control Department are all from well-known universities and institutions at home and abroad. They have a solid financial background, excellent investment research capabilities, and a keen sense of the market Sensitive ability, highly awe of the market and risks. The Investment Research Department combines rigorous basic research with mathematical and statistical models to obtain investment strategies such as "Pure Alpha" and "Smart Beta", and will soon export institutional-level research reports and project due diligence reports.
Supported by a professional team with multicultural backgrounds, members of the core departments - Investment Research Department, Trading Department, and Risk Control Department are all from well-known universities and institutions at home and abroad. They have a solid financial background, excellent investment research capabilities, and a keen sense of the market Sensitive ability, highly awe of the market and risks. The Investment Research Department combines rigorous basic research with mathematical and statistical models to obtain investment strategies such as "Pure Alpha" and "Smart Beta", and will soon export institutional-level research reports and project due diligence reports.
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