7/28 ANDY HOFFMAN (CryptoGoldCentral.com): Strong Hands, Scarcity and the 2020 Bitcoin Halving

Now that INSTITUTIONS are entering the Bitcoin market, the volumes that will be accumulated in the coming years will be ASTRONOMIC. I’d guess the average new Bitcoin buyer in 2017 held less than 5 BTC; but in 2019, when the bull market is in full swing – likely, with ETF’s trading - 20+ BTC wouldn’t surprise me. Hey, I think I’ll Tweet that out.

https://twitter.com/Andy_Hoffman_CG/status/1023164564756520965

To that end, we’ve been trading above the “Hoffman $100 billion (market cap) line” for eight months now; including a brutal seven month bear market, in which hundreds of thousands - if not millions – of Bitcoin changed hands from small, weak-handed retail investors to large, strong handed “whales” and institutions.

https://steemit.com/andyhoffman/@andyhoffman/7-25-andy-hoffman-cryptogoldcentral-com-the-meister-crypto-dividend-and-the-hoffman-line

Think about it. Bitcoin reached a $100 billion market cap faster than any asset class in history, but commenced a nasty bear market less than two months after achieving this monumental achievement…and held this valuation through seven months of relentless selling pressure, on the entire cryptocurrency space. This, my friends, is the DEFINITION of strong-handed accumulation! Hey, I think I’ll Tweet that out, too.

https://twitter.com/Andy_Hoffman_CG/status/1023166414440394758

Through bull, and particularly, bear market cycles, more and more Bitcoin is HODLed, by increasingly large, strong-handed holders – with no better example than the 50-100,000 BTC offloaded by the Mt Gox Trustee…at fire sale prices, ABOVE $100 billion. This time around, it’s fair to estimate that several million Bitcoin were locked up in online wallets and offline storage devices – before the BIG institutions have even entered the space. Let alone, the ETFs, which WILL come soon – and WILL NOT be exclusive to the U.S.

Simple math, and rudimentary analysis, tells us that of the 17 million Bitcoin ever mined, one million is likely forever lost in Satoshi’s wallet; another 3-4 million to user error; and 5-7 million to HODLers who will NEVER sell. Thus, just 5-7 million are floating – and thus, available-to-buy by an increasingly large pool of buyers…who at an increasingly rapid pace, are realizing how valuable Bitcoin has the potential to be. And then there’s the 2020 halving, barreling at us like a runaway train!

To wit, we are more than halfway between the July 2016 and May 2020 halvings – the latter of which, financial markets will start to discount sometime in 2019…likely, catalyzed by the positive impact the August 2019 Litecoin halving will likely have on LTC.

When all that new buying collides with a halving of supply, the laws of economic say a BIG upward price adjustment will occur – just as it did in early 2016, when Bitcoin commenced a two-year rocket ship ride, from $400 to $20,000. Only this time, Bitcoin will not just be a microcap curiosity with scaling and security issues – but a full-fledged, rock-solid, unchallenged institutional asset class!