Bitcoin is going to mirror the price action of Gold back when its ETFs launched
If bitcoin mirrors the path of gold when ETFs were introduced, we could have a very good next 2 years.
Rewind the clock with me back to 1980.
At this time gold was trading for $800 an ounce.
Over the next 20 years gold basically was in a bear market.
Making lower lows and never again sniffing new highs.
A chart of that price action can be seen here:
(Source: https://twitter.com/hashtag/bitcoin)
Then, all of sudden, prices started going up...
Around the year 2000 something changed.
We had the first couple of gold ETFs introduced in 2003 and shortly after prices started going up again.
This marked the first time ever that institutions could buy large quantities of gold, via ETFs, and not have to worry about storing it.
Buying tons of gold was not practical for any fund, but buying thousands of GLD shares was.
How does that relate to bitcoin?
Well, for my money, I think we get a bitcoin ETF launched at some point within the next 2 years.
There is simply too much demand for one not to get through.
When that happens, it will solve the same problem that prevented gold from being more widely held by institutions...
The problem of custody.
Once institutions can buy bitcoin exposure just by purchasing shares in their regular brokerage account, they are going to move into the space in droves.
Look at a chart of bitcoin today and see if see some similarities to that of gold right before ETFs launched:
(Source: https://twitter.com/styt12332/status/1097862332288589824)
Do you see what I see?
For those clamoring about how it took gold 20 years before it started going up again... I would reply with saying markets are night and day compared to what they were then.
For one, the internet didn't even really exist for most of that bear market.
People could not just click a button to buy or sell something, they had to look up the price in a newspaper then call their broker and tell them they wanted him to buy or something for him.
As you can imagine, things move much much faster today.
For that reason I think the current bear market in bitcoin, on the eve of bitcoin ETFs, looks eerily similar to what happened in the gold market from about 1980 through 2000.
Get your popcorn, it's going to be a fun next couple of years!
Stay informed my friends.
Follow me: @jrcornel
forget the popcorn get the champaigne and beer and hard booze lol
the bottom was in when we talked about how it might be the bottom a while back
cant remember which post
hope all is well and its goin to be a great two years i believe
Yep, $3,100 is looking more and more like it might have been the bottom.
its a beautiful thing lol
Where do you see prices going?
i see once regulation comes and bankers can print all they what i dont see a price of how high it can go if institutions adopt and media supports which is actually starting to happens and bitcoin machines
its really quite unstoppable if you stand back and look at the entire picture
have a great day man and keep up the articles
Popcorn
Something like that!
Hope you are correct Sir 🧐
The crypto world is starting.. BTC and companies will go to the moon, soon!
Which ones?
BAT, Stellar, BTC, Tron, Ripple and others... be patient, bro..
look at bitcoin..
What about steem?
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The potential is definitely there given the scarcity of bitcoin and the uncertainty of how supply can constrained by holders if not incentivized to sell by higher prices. We have seen that it doesn’t take much capital to get prices moving higher!
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You think it repeats what gold did?
I think it will although the product that will eventually be approve will have some constraints to control the price in some way... For example, it will probably allow for fractional reserving through futures which mean that their could be more money in the bitcoin ETF than the market cap of the real asset. This happens in gold and silver and is why their price can be controlled (IMO).
Posted using Partiko iOS
Yep, but does the positive of having a derivative like an ETF outweigh its negatives? I think yes.
Short term yes, but longer term the arbitration could lead for it to be controlled by institutions rather than retail which undermines the original purpose. Only time will tell!
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Very good point.
According to some YouTuber like @roadtoroota; Bix Weir, gold are plentiful. Bitcoin are very limited and trustless. I guess you don’t have to worry about JPM and friends to steal yout bitcoin. IMHO
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