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@dyehuthy
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Thread ๐Ÿงต (1/2)

Many people believe that Bitcoin's "volatility" is driven by Derivatives like Perpetual Futures, but they are wrong! ๐Ÿคฆโ€โ™‚๏ธ

Perpetual Futures are fully "cash-settled" (including liquidations, stablecoins) bets between traders, with no actual Bitcoin (collateral) involved in the trade. ๐Ÿ‘‡๐Ÿป๐Ÿ‘จ๐Ÿปโ€๐Ÿซ
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Jul 14, 2026 ยท 10:29 PM ยท 12 views ยท Commons
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@dyehuthy
@dyehuthy ยท Jul 14, 2026 ยท 10:32 PM
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Thread ๐Ÿงต (2/2)

What really drives Bitcoin's Volatility and its 4-year cycle is its fundamental scarcity: supply versus the monetary system's supply.

This means the liquidity and credit cycles that drive the business cycles ๐Ÿ‘จ๐Ÿปโ€๐Ÿซ

- Other asset classes, e.g., gold, have relative scarcity (supply)

- Bitcoin has absolute scarcity (supply, only 21M forever!)
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