Dilutionproof @[email protected]

This 🧵 contains references to my #Bitcoin related content, which I will keep extending over time - so it is basically my own Proof-of-Work time chain ⛓️

Click on "show this thread" & have fun! 👇

You can soon literally “buy the f***ing dip” in your brokerage account 😂
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RT @EricBalchunas
OMG, it looks like Valkyrie changed their ticker to $BTFD, they must of have listened to Twitter bc that was like all over my replies every time we talked about $BTF. Talk about an instant classic.
https://twitter.com/EricBalchunas/status/1450214934403497989

The #BTC/USD candle just had its highest weekly close ever🥳

I wonder where this is going...? 👀

It took me a bit to realize what @TXMCtrades tried to do here, but now I get it

OI/MC = does open interest grow faster than the value of all #BTC?

OI/RC = (paraphrased:) does futures speculation grow faster than that coins actually realize value?
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RT @TXMCtrades
#BTC Futures Open Interest as a % of Realized Cap, the value stored on-chain, is at the highest level since May.

I often see Futures OI as % of Market Cap, but I prefer it…
https://twitter.com/TXMCtrades/status/1449813538835423240

Am I the only one that doesn’t get why so many folks get riled up about a Twitter Spaces convo with a rich guy that doesn’t get #Bitcoin?

It is completely irrelevant IMO 🤷‍♂️

Just let him be; we can sell him some sats after he realizes he was wrong when price adds a 0 or two 😉

Watching the #bitcoin price go up is fun and all, but when turning it around and seeing the amount of sats that you get for each dollar that you Dollar Cost Average (DCA) into #bitcoin drop, I can't help but feel an urge to keep stacking 😨

With #bitcoin marching towards ATH & bullish sentiments returning, the contango that contributed to last year's bull run is coming back as well

Investors can currently grab a ~14% annualized yield by buying spot #BTC while selling a futures contract that expires in 3 months 👀

This chart was published in my latest column (October 1st), which described how on-chain trends changed around the January local top that also set key support & resistance levels

#bitcoin is up +40% since that last bounce off support 🥳

Read COC#5 here: https://bitcoinmagazine.com/culture/january-on-chain-bitcoin-price-trend

Last month, during the recent #bitcoin price run to $65k, growth of the long-term holder (LTH) supply & the negative exchange flows slowed down

It is likely that the LTH supply growth slows down further after we break ATH, as LTH tend to gradually sell against market strength

It’s funny how NGU Technology works
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RT @joaodealmeida_
Starting to see a surge on volume for retail payments in El Salvador (Food & Basic needs)
Either the Chivo Wallet is working better or people are actually starting embracing Bitcoin as their main mean of payment
https://twitter.com/joaodealmeida_/status/1449082805581873154

Alex is a beast 🔥
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RT @gladstein
1/ My new essay "The Quest for Digital Cash" follows the evolution of eCash to Bitcoin, the career of @adam3us, and the ongoing Cypherpunk struggle to fight for freedom and privacy via open-source code instead of asking the state for permission.

🧵 ☕

https://bitcoinmagazine.com/culture/bitcoin-adam-back-and-digital-cash
https://twitter.com/gladstein/status/1448317332695093251

A short article that introduces a new model that maps the prices of the Market-Value-to-Realized-Value (MVRV) Z-Scores on top of the #bitcoin price chart:

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RT @dilutionproof
1/5 The Market-Value-to-Realized-Value (MVRV) Bands are a new valuation model that iterates upon one of the most popular on-chain metrics in #Bitcoin

Learn how it works by checking out the short 🧵 below or reading the full article at @bitcoinmagazine : https…
https://twitter.com/dilutionproof/status/1448170767657619457

5/5 To summarize; the MVRV Bands represent the #bitcoin price at a certain number of standard deviations from its estimated cost basis

Due to the use of a standard deviation, the bands curl up during 🐂 runs, adopting more lenient price estimations during more volatile times

4/5 Using the same method used to create the #Bitcoin Price Temperature (BPT) Bands before, the MVRV Z-Score can be mapped upon the #bitcoin price chart by calculating the RV+x*MVsd at every point in time, where x represents the z-score that you want to visualize

3/5 Briefly after, @kenoshaking & @MustStopMurad divided the total #bitcoin Market Value (MV) by the RV, creating a groundbreaking metric called the MVRV Ratio

A pseudonym called Awe and Wonder then iterated upon it by standardizing it ((MV-RV)/MVsd), creating the MVRV Z-Score

2/5 The first concept to grasp is that of Realized Value (RV), introduced by @nic__carter & @khannib in 2018

RV is the total value of all circulating coins at the last time they moved on-chain, therefore representing the estimated cost-base of all existing #bitcoin

1/5 The Market-Value-to-Realized-Value (MVRV) Bands are a new valuation model that iterates upon one of the most popular on-chain metrics in #Bitcoin

Learn how it works by checking out the short 🧵 below or reading the full article at @bitcoinmagazine : https://bitcoinmagazine.com/markets/market-value-realized-value-bands-bitcoin

Would you rather store your wealth in a million different assets that you’d have to monitor if they are likely to maintain value and liquidity…

…or in an asset that you know won’t be diluted and is highly liquid everywhere?

Thanks to #Bitcoin, not everyone has to be a VC
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RT @naval
One way to decentralize store of value is to have millions of validating nodes.

Another way to decentralize store of value is to have millions of different …
https://twitter.com/naval/status/1447435096131203079

This is a good dynamic example:
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RT @1e9petrichor
h/t @starfuryflames 👇
https://twitter.com/1e9petrichor/status/1447296579732389893

At $55k, 92.74% of the #bitcoin supply is currently at a profit

When do you think we'll be at 100% (=ATH) again? 👀

#Bitcoin newbie Q&A:

Q: Why use a logarithmic price chart (⚫️)? 🤔

A: Due to exponential price growth, new #bitcoin market tops make historic ones shrink on a linear chart (🔴)

Now you know why news-outlets that refer to #Bitcoin as 'tulip mania' 🌷 always use linear charts 🤫