Part II. The Parabolic Supertrend in Bitcoin— FCV and the Bitcoin Trifecta
More nuts and bolts on valuing Bitcoin
In my previous post on this topic, I described what I felt to be a useful imagery to have in mind when examining Parabolic Trav’s supertrend chart, which looks like this figure.
If you haven’t read it, a quick summary of that previous article is that I proposed the imagery of bacterial growth. The three phases of bacterial growth, repeatedly sequenced together, mimics the Bitcoin supertrend. There is a lag phase, during which the bacteria are acclimatizing to the conditions in a Petri dish; an exponential phase, where the bacteria are growing through rapid, exponential multiplication, and phase of stagnation, where the bacteria exhaust the resources in the Petri dish and cannot grow any further. Left in that state, the fourth phase of retardation would then ensue. However, if more resources are provided, say by way of a larger Petri dish, the process continues anew. The parallel to the Bitcoin supertrend are easy to imagine.
Since that view may sit as somewhat too deterministic, in this post, I want to provide some of the nuts and bolts, and explore some other features of the Bitcoin ecosystem that Parabolic Trav and I have been exploring.
