Bitcoin was clearly undervalued at the beginning of the year, when its price was around $1,000.
how could such a determination be possible?
how could such a determination be possible?
At the start of 2017 there were still lots of uncertainties and risk about how the Bitcoin ecosystem would handle certain waring factions inside of it.
Will businesses be able to write closed-door agreements and coopt the digital asset or Will the protocol remain immutable, continuing it's value proposition to the market.
The second option succeeded, risk was removed: that's a reasonable thesis to a price appreciation. Markets hate risks/unknowns.
And I'm talking in relative terms; it was undervalued relative to what happened next.
Yes, we know the ship is unsafe because otherwise the front wouldn't have fallen off! We know the price rose. This article is suggesting that the price rose not because it was undervalued, but because it was manipulated upwards by people pumping it up with fake numbers.
>From March 1, 2017 to March 31, 2018, the actual Bitcoin price rises from around $1190 to $7000 for a 488% return. In contrast, the price series without the 87 Tether-related hours ends at around $4100, a 245% rise
>These 87 events account for less than 1% of our time series (over the period from the beginning of March 2017 to the end of March 2018), yet are associated with 50% of Bitcoin’s compounded return
They don't claim that all the price increase is correlated with Tether, but that it was certainly a big factor.
The people behind articles like this are presumably short on BTC.