Plan #05: Bitcoin KPIs to Monitor

Bitcoin is gaining popularity. There’s a new story every minute.

For long-term investors, this is great news as we can look forward to taking profits. As a friendly reminder, start planning your exit strategy if you haven’t already.

And before going further, here’s a glimpse into our new dashboard – https://crypto-ml.com/dashboard/data-hub/.

All paying users will have access to Bitcoin Analytics Data Hub at your current subscription fee, and for free users, we’ll offer upgrade options by Jan 2nd week.

Now let’s have a look at three important KPIs and why they are important.

Bitcoin Halving

It demonstrates the deflationary aspect of Bitcoin.

Bitcoin has a limited supply, precisely 21 million tokens.

As of October 2023, approximately 19.5 million bitcoins are in circulation, with 1.5 million tokens to go.

Essential to note:

New Bitcoin is only introduced in the network via mining rewards. When the Bitcoin halving event occurs (averaged every 4 years), mining rewards are reduced by half.

This reduction in supply rate often leads to an increase in Bitcoin’s price, as the decreased supply, assuming steady demand, can create upward pressure on the market value. It also clearly demonstrates Bitcoin’s deflationary aspect, unlike US dollar, where the US government prints $218 million every hour, or $5.2 billion every day from thin air as debt.

Sources for US per hour debt figures

1. Business Insider
2. US Treasury

Bitcoin Hash Rate

It represents the total computational power of the Blockchain.

The hash rate on 23rd December was 623.90 EH/s (Exahashes per second), which means that the Bitcoin network performs 623.90 quintillion (623,900,000,000,000,000,000) checks every second. Every second!

To put this into perspective, imagine a giant global lottery where everyone tries to guess a winning number. Each guess is one hash, and the world makes 623.90 quintillion guesses every second. Put another way, that is 78.97 billion guesses per person per second. 

A high hash rate, like 623 quintillion, makes it impractical for any entity to initiate a 51% attack, where they try to manipulate the Blockchain and Bitcoin’s fixed supply. 

Link to view historical hash rates.

Bitcoin ETFs

This is where institutions invest large sums of money – in the trillions – into a financial instrument called an ETF. This allows investors to get exposure to Bitcoin without actually owning it directly.

ETFs will allow for more people to start using Bitcoin, and if 5% of all managed assets are put into Bitcoin, that equals 1.94 Trillion dollars coming into Bitcoin, which would have a huge impact on the cost of each Bitcoin.

We explained the math of Bitcoin ETFs in detail in The Five Year Plan. Click here to read more about it.

Market 101: Starting Now With Bitcoin?

Many people think that they’ve missed out on Bitcoin, but that’s not true.

While a 100x return is unlikely, it is possible to create a considerable return in a 5-year timeframe.

Our advice for investors is to never invest a large sum of money all at once.

When prices keep going up, it’s easy to get caught up in the Fear Of Missing Out (FOMO) and make an emotional investment.

If you are just getting started, be mindful of FOMO and instead invest regularly on a monthly basis.

For Seasoned Investors: Key Market Facts

If you have been through a full market cycle (when prices go up, followed by prices going down), you know that the best time to buy is when not many people are buying, and the best time to sell is when not many people are selling.

Don’t go searching for that rare person who is buying while everyone else is selling. You’ll find plenty of users in this email list.

Our 2023 Recap.

Before the holiday season and the start of 2024, we reflected on the past six years and found the following:

1. Our email open rate has remained consistent at 38.5% since we launched this newsletter four weeks ago.
2. From our user base, 1,462 users have logged in an average of 42 times this year.
3. We have been moved by many of you sharing stories and giving us insight into your investing experiences—we are incredibly grateful to be a part of it.

As we head into 2024 with a new positioning as a Bitcoin Analytics Firm, we want to say thank you. You have entrusted us with your time, and we will do our best to keep earning that trust, every single day, for as long as we can.

Whenever you are ready, there are two ways we can help you.

1. Bitcoin Analytics Hub: Your actionable intelligence partner in accumulating Bitcoin. Free to audit till Jan 5th, and available at current subscription fees to existing users. No credit card required till Jan 5th, 24.
2. Bitcoin-OS Waitlist: It simplifies Bitcoin Investing for working professionals. It’s free, actionable, and to the point.
3. Got any thoughts or questions while reading this? Just click here – we’re eager to hear your perspective.