Crypto Crash: Bitcoin Smashed Most Cryptos Even Worse

Mish

Cryptos were smashed hard today. Bitcoin fell 36% the rest of the top 10 fell more.

Once again I point out the widely believed nonsense that price follows hash rate.

Hash Rate Hits Record

Please consider this January 2, 2020 post Bitcoin Kicks Off 2020 More Secure Than Ever as Hash Rate Hits Record

Bitcoin Hash Rate

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Bitcoin vs Hash Rate

So we are near record highs on the hash rate.

Bitcoin peaked at $19,783 on December 17, 2017.

It is now under $6,000.

Please stop the nonsense that Bitcoin follows the hash rate. Clearly it doesn't.

Hash Rate Projections

Belief in the hash rate is likely what's behind the $1,000,000 projections.

Since people still believe in the million dollar projections they are forced to believe in proven nonsensical hash rate theories.

Misunderstanding Supply

The fundamental issue behind both projections and hash rate theories is a huge misunderstanding of supply.

Contrary to popular myth, the supply of bitcoin rises every day albeit at a diminishing rate.

That does not make bitcoin more valuable, again as proven.

Repeat After Me

  1. The supply of Bitcoin is not falling. It is rising every day.
  2. Price does not follow hash rate.

Discard as trash any article that says something else.

Mike "Mish" Shedlock

Comments (8)
ohno
ohno

Now why can't crap on a computer save you in a financial crash along with a pandemic? I just dont get it. lmao!

RayLopez
RayLopez

They say that bitcoin is the Millennial's gold. As a Boomer, I rather hold gold, it's much more safe to me than a deterministic wallet.

stillCJ
stillCJ

Editor

19:23 PDT Bitcoin trading under $4100.

Mish
Mish

Editor

The chart from Investing.Com had terribly wrong one day percentages.

I notified them and changed the chart

Karl122
Karl122

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