The two types of Altcoins, an investor's view

This is a thread on altcoins, first published on Twitter.Altcoins are nuanced. We have:Protocol coinsUtility tokensSecurity tokensNon-fungible tokensBut to an investor, there's only 2 types. Oscillators and Degenerators. You can spot them on this chart of the entire market. The vast majority of alt-coins are Degenerators. Their price…

Experiments on Cumulative Destruction

Two approaches to bring bitcoin-days-destroyed into the price domainOkay, so this article is now well overdue given the recent price action. BTC never rests! The last few months have been very productive in terms of discovering new valuation metrics based on on-chain analytics. The recent proposals using coindays destroyed by…

On peak indecisiveness

Summing Bitfinex's margin BTCUSD long and short positioning charts gives us an indication of speculator decisiveness. You can pull this chart up on TradingView with "BTCUSDLONGS+BTCUSDSHORTS". To be clear this is a view into speculator margin trade activity, in essence the volume they are borrowing from funders in order…

Fees paid to Bitcoin miners by year

If the Bitcoin network was a payments startup this chart would track its annual sales.  Total fees paid to miners by year: 2010: $3.8k 2011: $33k 2012: $66k 2013: $2.2m 2014: $2.5m 2015: $2.3m 2016: $13.6m 2017: $555m 2018: $296m…

Utility is a red herring, look for organic store of value

This article was first tweeted in short form on 9th Jan 2019.Store of value properties is what gives crypto networks value, utility is overrated for the purposes of investment appreciation. Utility is a red herring for investors. In the case of Bitcoin, its real utility is really just a…

Why HODL?

Why HODL? It allows you to capture the gains of the market. Trading lets you beat it. In that zero-sum game, 10% of participants win, 90% lose. Are your skills in the top 10%? If not and you're still winning it's due to luck. Unfortunately being on the right side…

Overheard in a chatroom: Forecasting vs predicting

I think of TA [technical analysis and charting that traders do] in exactly this forecast context. Veteran traders like Peter Brandt are forecasters. He's had decades of trading, he's removed much of his personal bias. He looks at chart setups more objectively.…