The Last Trade E020: Building the Bloomberg Terminal for Bitcoin with Alon Shvartsman
Oct 6, 2023
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Alon Shvartsman, an expert in building the Bloomberg Terminal for Bitcoin, joins the hosts to discuss the development of a new Bitcoin terminal and the value of fundamental metrics in understanding the state of Bitcoin. They explore changes in Bitcoin mining, Lightning Network, Bitcoin node distribution, and non-mainstream metrics available on the terminal. Building a Bitcoin terminal, the difficulty estimator in Bitcoin mining, and the importance of accurate data in the cryptocurrency industry are also discussed.
Bitcoin mining activity remains strong despite price volatility, demonstrating the anti-fragility of the network.
Companies holding Bitcoin on their balance sheets show a long-term commitment to Bitcoin as a store of value.
The 'Never Look Back Price' chart emphasizes the historical upward trajectory of Bitcoin's price and rewards long-term holders.
The New Hedge Terminal consolidates various Bitcoin metrics, providing a centralized platform for data-driven decision-making.
Deep dives
Bitcoin Mining Thriving Despite Price Volatility
One of the main insights from the podcast episode is that Bitcoin mining activity has been thriving even in the face of price volatility. Despite the price dropping by 50-60% from its all-time high, mining hash rate and difficulty have reached all-time highs. This indicates that miners are doubling down and putting a strain on the network, even as their revenues decrease. This resilience and determination of miners to continue mining and pushing the network forward demonstrates the anti-fragility of the Bitcoin network.
Bitcoin Treasuries Hold Steady as Price Fluctuates
Another key point discussed in the podcast episode is the growing trend of companies holding Bitcoin on their balance sheets. The amount of Bitcoin held in public and private company treasuries has reached 1.6 million BTC, valued at $44 billion. This shows a strong conviction in Bitcoin as a long-term store of value. Despite the price fluctuations, these treasuries have remained largely unchanged, indicating a commitment to holding Bitcoin for the long term.
Bitcoin's Resilience Reflected in Never Look Back Price
The podcast also highlights the concept of the 'Never Look Back Price', which shows the Bitcoin price over time with the noise removed. This chart demonstrates the long-term upward trajectory of Bitcoin's price, with periods of temporary dips or red zones. It serves as a reminder that even during bear markets or moments when it may seem like Bitcoin is dead, history has shown that the price eventually recovers and continues on its upward trajectory, rewarding long-term holders.
New Hedge Terminal: A Comprehensive Bitcoin Data Solution
The podcast episode introduces the New Hedge Terminal as a comprehensive Bitcoin data solution that consolidates various metrics and provides a centralized platform for accessing key insights. The terminal offers a range of metrics including mining activity, Bitcoin treasuries, derivatives data, and more. It aims to provide investors and enthusiasts with a focused and efficient way to access high-quality data and engage in community-driven discussions. The social aspect of the terminal allows users to chat, share insights, and access research articles, enhancing the overall user experience.
Bitcoin terminal offers dedicated Bitcoin data
The podcast episode discusses a new Bitcoin terminal that provides curated Bitcoin-only content along with in-depth Bitcoin analytics. The terminal aims to filter out noise and provide high-quality data and metrics for Bitcoin enthusiasts and investors. It offers various charts, including difficulty estimators, mining epochs, and monthly transaction data, which highlight Bitcoin's growth and adoption over time. The terminal also allows users to sign up and create profiles, set dynamic alerts, and explore a legality map showcasing the regulatory landscape of Bitcoin across different countries. The podcast hosts express optimism about the role of the terminal in supporting the Bitcoin ecosystem and facilitating data-driven decision-making for smart money.
Integration and future plans
The podcast episode delves into the integration potential of the Bitcoin terminal with other platforms, such as the on-ramp terminal. They discuss the possibility of incorporating the terminal's metrics and data into different terminals and websites to provide users with valuable Bitcoin information. They highlight the importance of stickiness and user utility in creating a base for Bitcoin projects to build upon and emphasize the need for accurate data and metrics in the Bitcoin industry. The hosts also touch upon the idea of creating personalized PDFs or slide-based reports to condense and share relevant terminal insights with users, amplifying the value and reach of the data.
Bitcoin analytics and the future of the industry
The podcast episode concludes with a focus on Bitcoin analytics and the direction of the industry. They highlight the significance of metrics related to halving cycles and monthly transactions, demonstrating the increasing efficiency and growth of the Bitcoin network. The hosts mention the potential for hash rate derivatives and forward contracts as the mining industry matures and profit margins slim. They also discuss the importance of data-driven decision-making and the utility of Bitcoin in merchant transactions, debunking misconceptions about Bitcoin's usage. Lastly, they envision a future where the Bitcoin terminal becomes a central meeting point for the Bitcoin community, fostering collaboration and innovation among various Bitcoin projects.
The Last Trade: a weekly, bitcoin native, interactive podcast covering where Bitcoin and traditional finance meet on a macro scale. Hosted by Marty Bent, Jesse Myers (Croesus), Michael Tanguma, and a special weekly guest host.
Join us as we dive into what Bitcoin means for how individuals & institutions save, invest, and propagate their purchasing power through time. It's not just another asset - in the digital age, it's the Last Trade that investors will ever need to make.
Check out the terminal: https://terminal.onrampbitcoin.com/
0:00 - Intro
0:30 - Texans can’t drive
3:11 - Alon’s journey & creating Newhedge
10:16 - Discussing the current era of Bitcoin
19:41 - Looking at the data
21:21 - China mining ban
26:31 - Node map
31:41 - Rainbow chart and Bitcoin treasuries
36:21 - Never Look Back Price
38:50 - Profitable days
41:25 - BTC futures open interest
45:43 - Social forces
54:35 - Bitcoin-only signal
1:03:05 - Difficulty estimator
1:11:08 - Legality map
1:14:44 - Newhedge integration
1:25:13 - More metrics
1:32:18 - Wrapping up
Schedule time with the link below if you would ever like to learn more about Onramp and please sign up for weekly Research and Analysis to get access to the best content in the ecosystem weekly:
https://www.onrampbitcoin.com/contact
https://www.onrampbitcoin.com/research
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