Kapoor Kshitiz
Kapoor Kshitiz

@kshitizkapoor_

10 تغريدة 4 قراءة Jun 01, 2023
#Bitcoin : " Thread on the #cryptocurrency 🧵🧠"
Talking about:
1. What is #BTC ?
2. Medium of exchange: #Gold vs #Fiat vs #bitcoins
3. $BTC's economics: Inelastic supply and demand.
4. The 4 year #halving cycle.
5. Advantages of #bitcoin in the global #economy
What is #Bitcoin ?
#btc is a #P2P version of e-cash that allows online payments to be sent directly from one party to another without going through a middlemen.
The brainchild of #SatoshiNakamoto is extensive research in the field of cryptography and distributed systems.
#Satoshi managed to create the following four major innovations, #United into one powerful combination:
1. Proof of Work Algorithm (#POW).
2. Rules for verifying transactions and emissions.
3. #decentralized #P2P network.
4. Public ledger of transactions (#Blockchain).
Let's compare #Bitcoin with #Fiat and #Gold as the medium of exchange (#money) .
There are many properties to focus on and below image depicts the ones I believe are vital for the comparison.
Do you think #btc wins it or not?
#Bitcoin's economics: "#Supply and #demand"
1. #btc supply is certain (21 million) and demand is not.
2. The rate at which $BTC is mined is highly predictable.
3. $BTC's supply is perfectly inelastic.
4. No matter how high the price rises, miners will never produce more.
#Bitcoin halving cycle: "#fundamentals"
#btc's halving is the bisecting the payment to miners for adding a block to the #Blockchain. Block has info on transactions (10 min.), hash, amounts and addresses.
Halving controls #inflation making $BTC a deflationary #asset.
#Bitcoin halving cycle: "Technicals"
#btc tends to move in a cycle of #BullMarket, #bearmarket and a reaccumulation phase. One cycle is completed in 4 years.
It is a supply shock which occurs due to halving of $BTC. This increases the demand thus pushing the price up.
#BTC, #Bitcoin : "Phases"
Jul 10 - Jun 11 :🟢
Jul 11 - Oct 11:🔴
Oct 11 - May 11: Accumulation
May 11 - Nov 13 :🟢
Nov 13 - Jan 15:🔴
Jan 15 - Jan 17: Accumulation
Jan 17 - Dec 17 :🟢
Dec 17 - Nov 18:🔴
Nov 18 - Jul 20: Accumulation
Jul 20 - Nov 21 :🟢
Nov 21 - present:🔴
Advantages of #bitcoin in the #global #economy:
1. Shifts in global #investments
2. Separates transactions from #Dollar
3. Eliminates the middlemen
4. Open ups the #credit system
5. Opens new emerging market
6. New era of #crowdfunding
7. #btc favors Environmentalism
I have done extensive research on this #Thread.
Please #like and #retweet the first tweet of the thread if you enjoyed reading.
#Bitcoin #BTC #finance #Economics #Banks

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