This article was first published on PIVX
For members of the general public, cryptocurrency can be viewed as either succeeding or failing based only on recent price movements. For example, when bitcoin dropped from it’s all-time high to $10,000, members of the media claimed that this was evidence that bitcoin was “dying”, had already died, was a fraud, and so on. Conversely, when we look at the recent price increase from the $4000s to the $8000s, the media is once again touting that bitcoin is taking off once more, and is seeing a glorious rise.
But why is it that we consider the $10,000 price point failure, and an $8000 price point a victory? Join me as I go over why short-term price analysis means nothing – only the long-term matters.
If one were to look at bitcoin prices from their first appearance on price charts to today, draw a single point at the starting price and the single point at today’s price and draw a straight line between them, you will see a very clear and steady upward trend.
The point of this exercise is not to claim that bitcoin will inevitably go up. Instead, it is merely a means of demonstrating that over long time scales, bitcoin and most of the major cryptocurrencies (including PIVX) have seen a historically continuous upward trend.
But simply drawing a line between the start point and today’s value ends up hiding a lot of movements both upwards and downwards. Most importantly, it essentially erases the entire 2017 bull run since it appeared and deflated so quickly. This exercise also demonstrates that bull runs like the one we saw in 2017 don’t have a significant impact on long-term prices. While they may cause short-term fear, greed and turmoil, they do not necessarily spell the victory or demise of ...
To keep reading, please go to the original article at: