1/ If you're new, here are some must-read resources on bitcoin, ethereum, defi, web 3.0, and the future of crypto.

Tools to join the revolution. 👇

#Bitcoin has completed a Zig Zag formation from it's inception.
Break below Orange Trendline would confirm the termination.
Post that it can correct to the shaded zone by the given time frame.
It's been a major surprise that it all transformed into a Zig Zag and not an Impulse.

Other Technical factors:
• An H&S breakdown
• Break below Anchored VWAP from March 2020 Lows
• Volume Distribution

1/ The Price of Bitcoin

- Why price is entirely what matters
- How the price helps build Bitcoin

A thread👇

2/ Marketing viral loop

“A viral loop is a mechanism that drives continuous referrals for continuous growth.

It’s how you drive your existing customers to refer others to your brand, and in turn, get those new customers to tell even more people about you." - @ReferralRock

3/ Most of us heard about Bitcoin in 2013, 2017, when friends and family were talking about the rapid price increase. It’s through this viral loop that Bitcoin grows in adoption.

4/ The price is that signal to folks that Bitcoin is interesting, solves a problem, and that others are recognizing it as a new money. If Bitcoin’s price had stayed at $100 none of us would be here. While there is volatility, we keep seeing higher lows = long term trend upwards.

5/ Satoshi built a viral loop into Bitcoin.

“As the number of users grows, the value per coin increases. It has the potential for a positive feedback loop; as users increase, the value goes up, which could attract more users to take advantage of the increasing value.” - Satoshi

Here’s my thoughts with BTC lending as this cycle heats up. During the previous cycle we saw BTC prices jump from 10,000 to 20,000 in 16 days. This means that if the borrower overcollateralized with an LTV of 50%, their escrow will be liquidated (unless margin is met)...1/

within half a month. Now, what happens if this cycle produces growth that keeps running at double the price action in another 16 days from there? Well, it means those that just met the previous margin calls, now only have 4 days to respond to the next. So what does 2/

this mean for spreads? It means borrowers start to disappear from the market...which also means the spreads in the derivative market don’t get market makers to service the short-side of the trade. For lending/borrowing platforms that are completely overcollateralized, there 3/

shouldn’t be any problems for the depositors, but if lending/borrowing platforms are cutting corners for some of their borrowers (and they aren’t overcollateralized), the borrowers ability to meet margin calls due to counter-party risks in other parts of their portfolio mix ...4/

could cause systematic risk for all participants of the borrowing/lending platform. This is why transparency on borrowing/lending platforms are paramount to long-term trust and growth in the industry. I suspect the risk to lending/borrowing platforms is actually....5/