Five Reasons Why Bitcoin Investors Shouldn’t Be Worried

With every sudden Bitcoin price collapse, there are always those that come out of the woodwork to claim that Bitcoin is ‘finally dead.’ At the very least, they seem to imply that Bitcoin’s dominance is living off of borrowed time. However, fundamental indicators tell us a different story.

Five Reasons Bitcoin Investors Should Not Be Worried

Here are five reasons why Bitcoin HODLrs shouldn’t panic over the recent price drop. It all comes down to fundamentals, brought to you by researcher Hans HODL (@hansthered).

1. 365-MA for Transactional Output Is at All-Time High

A chart showing the moving average for Bitcoin’s transactional output over the last 365 shows that we are currently at an all-time high. In fact, there has been a significant uptick in 2019 alone.

Apparently some people are worried about Bitcoin? I don't know if I can help, but let's look at some data!

Here's a chart of the 365 daily moving average of the number of transactions on the Bitcoin network. Looks like we're at an all-time high… pic.twitter.com/apvQgthZuJ

— Hans HODL (@hansthered) September 26, 2019

2. Hash Rate Near All-Time High

Despite the controversy over the recent blip which caused a supposed hash rate drop, it recovered almost immediately and is currently back near its all-time high. Bitcoin is undisputedly the more secure network in the entire cryptocurrency industry.

Ok, let's check the hash rate. Maybe the miners quit mining or something? No, actually that's at an all-time high as well. pic.twitter.com/Vx3Ao4sUNP

— Hans HODL (@hansthered) September 26, 2019

3. Bitcoin’s Inflation Continues to Fall

The point needs to be made clear that Bitcoin will only become more scarce over time. Bitcoin’s deflationary pressure is right on schedule and below Hans HODL graphs it on a logarithmic scale.

What about the inflation rate? Did we suddenly increase the supply? Hmm, right on schedule and falling in log scale over time as expected. pic.twitter.com/PQNPFKZ00V

— Hans HODL (@hansthered) September 26, 2019

4. Bitcoin’s Price Logarithmically Is Still on Track

All long-term estimations of Bitcoin’s price movements should be tracked on the log scale. This allows us to more clearly see the different price waves, going as far back as 2011. Using this metric, Bitcoin is soaring. 

Maybe the price is the issue? No, that's increasing in log scale too… pic.twitter.com/V2ng43NSVD

— Hans HODL (@hansthered) September 26, 2019

5. Bitcoin’s Still Very Active GitHub

Although people may forget, Bitcoin’s GitHub is still quite active. Over the last 30 days, there were 144 Pull Requests merged and around 40 closed issues.

Did the developers stop writing code? No, 114 Pull Requests merged in the last 30 days… pic.twitter.com/s2wvpeZU9T

— Hans HODL (@hansthered) September 26, 2019

The Bottom Line

According to Hans HODL, Bitcoin’s fundamentals don’t match the panic surrounding its future right now. The suggestion is for traders and holders to step outside of the noise for a bit and look at Bitcoin objectively. Using these metrics, we can see that major indicators for Bitcoin remain positive — and are even getting better.

I don't know what to tell you guys, from a fundamental perspective Bitcoin looks great. I guess it's back to HODLing!

— Hans HODL (@hansthered) September 26, 2019

Turns out it was much panic over nothing.  Time to go back to HODLing, indeed. Do you agree with these 5 fundamental indicators? Are there more you would add? Let us know your thoughts below in the comments.