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
Bitcoin vs Hash Rate
So 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
Believe 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.
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
- The supply of Bitcoin is not falling. It is rising every day.
- Price does not follow hash rate.
Discard as trash any article that says something else.
Mike “Mish” Shedlock