Bitcoin is difficult to trade because the gains come in bunches

What do I mean by that?

Well, bitcoin makes all its gains for the year during the 10 biggest up-days of the year.

In fact, if you exclude those 10 best days, bitcoin actually has negative returns each year.

It loses roughly 25% of value each year excluding its 10 best days:

(Source:

https://twitter.com/fundstrat/status/1178077108729454592
- fundstrat

)

That actually makes a lot of sense!

People like to talk about bitcoin like it is deflationary currency, but it is not.

The supply of bitcoin is growing every single day.

It's just the rate of new emissions that is shrinking over time.

Eventually the supply gets capped at 21 million coins, but for now bitcoin is an inflationary currency just like all the rest.

And when supply is increasing, the only way prices can go up is if the demand coming in exceeds the rate of new emissions.

When things are slow for bitcoin, IE not the 10 best days, there is not enough demand coming in to offset the new supply created every single day.

It may sound like a catchy crypo-bro saying, but HODLing truly is the best play overall.

It makes sure you don't miss one or more of those 10 best up-days.

So, the next time you freak out about bitcoin being down more than it is up, keep in mind that is just normal price action for bitcoin.

Remember, it makes all of its gains in only 10 days out of the year, which is why trading bitcoin is so gosh dang difficult.

If you miss one or two of those days during the year, your returns get crushed.

Stay informed my friends.

-Doc