Five Reasons Bitcoin Investors Should Not Be WorriedHere 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 HighA 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!— Hans HODL (@hansthered) September 26, 2019
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
2. Hash Rate Near All-Time HighDespite 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 FallThe 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 TrackAll 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 GitHubAlthough 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 LineAccording 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.
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.
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
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.