Why is it so difficult to understand what Bitcoin involves?

Because it affects various mental models.

Thread.

Inflection Point / Critical Mass:

The increase in the liquidity of the FED in 2020 due to Covid has generated a turning point in the BTC.

Investors have gone from thinking of BTC as a risky asset to thinking that the risk is not having it, increasing confidence towards it.
Compound Interest / Velocity:

The BTC has gone from $400 to $40k in 5 years, which represents an annual return of 150%, 15 times more than the average stock market return.

This has been one of the largest and fastest creations of wealth in history.
Scarcity / Supply and Demand:

The greater the scarcity of an asset, the greater its value.

As BTC becomes popular, its demand increases, while its supply does not vary. Which makes the price go up.
Cooperation:

The BTC is decentralized.

Their trust is not based on the authority of a central bank, but on the cooperation of the population.

The greater the cooperation, the greater the trust and therefore the greater the value.
Opportunity cost:

More and more investors think that the opportunity cost of not having BTC is greater than having it, and therefore they buy it and its price continues to increase.

MOFO thinking increases.
Social-Proof Tendency / Feedback Loops:

We are social animals.

The more popular BTC is, the more we think we should buy it, and this increases its popularity and its price, making more people want to join and buy.
Network Effects:

In network-based systems, the first participant usually has a definite advantage over the followers.

There are other currencies similar to BTC, but its popularity means that the more people are connected to BTC, the more powerful it will be.
Incentives / Principal-Agent Problem / Inclusive Economic and Political Institutions:

Fiat currencies are issued by the agent (central banks), who don't have the same incentives as the principal (the population), devaluing the currency.

Especially relevant in corrupt countries.
Black Swan / Antifragility / Resilience:

Globalization increases the impact of unforeseeable events. Covid in 2020 is a good example. Faced with all these events, safe haven assets increase in value.

The greater the crisis, the greater the value of the safe haven assets.
Creative Destruction / Historic Recurrence:

For there to be progress, old models must be destroyed.

The monetary standard has changed throughout history, from salt to the dollar, to silver and gold.

Many think that BTC will be the new monetary standard.
If you want to think from mental models, get your copy:

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More from Crypto

Excited to share our 2020 #Bitcoin review.

2020 will be remembered as the year the long fabled institutions finally arrived and #Bitcoin became a bonafide macroeconomic asset.

Below are the top highlights of each month for Bitcoin’s historic year.

1/


Bitcoin is now at all-time highs capping off an extremely successful year.

But it was by no means stable ride up.

2020 was a historically volatile year.

@YoungCryptoPM and I provided a detailed overview of every month of 2020 in all its

Jan.

3 days into the new year the US assassinated Iran’s top general Soleimani.

BTC surprisingly reacted to the events behaving like a safe haven as the risk of war increased.

The events provided the first hints of BTC potentially having graduated to a legitimate macro asset.


Feb.

COVID-19 reached a tipping point causing markets to crash.

BTC’s correlation with the S&P 500 reached an ATH in the following weeks.

This is when everyone learned BTC was not a recession hedge, it was a hedge against inflation and loss of confidence in fiat currencies.
https://t.co/JB7dJ3qp6M


Mar.

Financial markets in free fall.

The liquidity crisis was so severe BTC experienced one of it’s worst days ever.

Now known as Black Thursday, on March 12, BTC plummeted as much as 50% to below $4,000 at its lowest point on the day.

BTC closed the day down 40%
A primer on how to use @coingecko for your crypto data/research/trading needs.

Share it with a friend who needs it!

1/ Getting started with crypto and want to check prices/projects? https://t.co/LFnk4vukxj has info on just about every crypto you'll need :)


2/ Search over 6000+ cryptocurrencies available on the market. You can see what's trending in the space as well.

Researching by categories? Filter (left side) -> Select categories -> DeFi, DOT ecosystem, Exchange-based tokens, NFTs - anything!


3/ Lets say you're looking at #Bitcoin
https://t.co/g205lj03pG

At a glance you get:
- Price
- Mkt Capitalization (valuation)
- Circulating/Total supply
- 24h trading volume
- Links to websites, social media, block explorers
- Calculator

Next - check valuation?


4/ Market cap is used to rank coins, and we'll show you how its calculated - Hover over Circulating Supply (?) for breakdown.

Note: used @chainlink as example here - https://t.co/Jc46fe79Ag

While MC is important also consider product fit, narrative, team, community etc.


5/ If you're trading on AMMs like @Uniswap or @SushiSwap, you can copy the contract address directly to your clipboard.

Using @metamask_io? Add the token directly so it shows as one of the "Assets" that you own in the wallet.

See: https://t.co/94XihMf5oz

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Following @BAUDEGS I have experienced hateful and propagandist tweets time after time. I have been shocked that an academic community would be so reckless with their publications. So I did some research.
The question is:
Is this an official account for Bahcesehir Uni (Bau)?


Bahcesehir Uni, BAU has an official website
https://t.co/ztzX6uj34V which links to their social media, leading to their Twitter account @Bahcesehir

BAU’s official Twitter account


BAU has many departments, which all have separate accounts. Nowhere among them did I find @BAUDEGS
@BAUOrganization @ApplyBAU @adayBAU @BAUAlumniCenter @bahcesehirfbe @baufens @CyprusBau @bauiisbf @bauglobal @bahcesehirebe @BAUintBatumi @BAUiletisim @BAUSaglik @bauebf @TIPBAU

Nowhere among them was @BAUDEGS to find