We Study Billionaires - The Investor’s Podcast Network BTC017: Bitcoin Onchain Analytics & Timing w/ Charles Edwards (Bitcoin Podcast)
Mar 17, 2021
Join Charles Edwards, quant investor and creator of the Hash Ribbons trading metric, as he dives into the intriguing world of Bitcoin. He discusses how to value Bitcoin, the significance of hash ribbons, and macro factors influencing the market. Edwards explains the concept of contango trade and evaluates Bitcoin's price floor in relation to energy costs. He also shares top investment lessons, the emerging tail risks of Bitcoin, and insights into the cryptocurrency's future amidst economic uncertainty.
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Holistic Bitcoin Valuation
- Consider all available information when valuing Bitcoin, including technicals, fundamentals, on-chain data, and sentiment.
- All these inputs ultimately contribute to the supply and demand calculation that determines price.
Hash Ribbons Explained
- Hash Ribbons identify Bitcoin capitulation by tracking miner behavior. Inefficient miners struggle during price drops, leading to a hash rate decline and a buying opportunity.
Bitcoin Bottom vs. Top
- Bitcoin's bottom is easier to identify than its top due to its limited supply and potentially infinite demand relative to the current price.
- This makes undervaluation easier to spot than overvaluation, driven by emotional factors.
