3 Tips to understand the Bitcoin Misery Index
The world is slowly getting used to cryptocurrencies. Every day we see a new application or a new way to trade with cryptocurrencies.
There are too many signs that a war it is actually taking place on financial markets between cryptocurrencies and central banks. It seems cryptocurrencies are winning.
One of those signs is the Bitcoin Misery Index or BMI a proxy developed by Tom Lee Fundstrat Global Advisors´ to keep track of bitcoin´s ups and downs.
1 What is the Bitcoin Misery Index?
It is a numerical index that allows you to study how long bitcoin it is been going up and what has been the price in such time and also shows the low price/time, theoretically allowing you to make a projection on future movements.
2 How does it work?
It works similar to other equity technician´s indexes such as Relative Strength Index or Moving Average Convergence/Divergence (MACD), used to detect if a stock is oversold or overbought.
3 What, a stock?
Yes. It seems financial markets are assuming cryptocurrencies as stocks, the same way central banks have stockholders, the world is the stockholder for cryptocurrencies.
The could represent a tipping point in the way financial markets work, allowing almost everybody to play a part on the world´s economic play. It is also proof that financial markets are getting tired of anachronistic regulations, proven to benefit more those in regulatory positions (IMF, WB, and Bilderberg Club).
Finally, a warning is in order. Cryptocurrencies are regulations free, meaning you are playing a game with no rules, and even if you learn how to make projections using BMI, there is no assurance that the outcome it will be as projected.