3 Reasons for Bitcoin Optimism
Bitcoin is in a slump, no doubt. Will it keep going down below $6,000? Or will it rise to greater heights again? There are some reasons for optimism. Don't give up on bitcoin just yet.
A recent CNBC Faster Trader show was presented as the "Bitcoin Funeral". It dealt with cryptocurrency investor Brian Kelly's discussion of bitcoin's fall as a correction and it's future price trend. Kelly provided 3 reasons why bitcoin will recover in the mid-term, back to a support level of $10,000.
They are:
- Negative sentiment from investors signaling imminence of a bottom
- Positive development within the Japanese cryptocurrency exchange market
- Mt. Gox liquidation of bitcoin postponed to 2019
Source: pixabay
When the market is extremely bullish and optimistic, it's better to sell. That's when the price is high and the hype is on, which signals it will soon reverse. Then you look for the time and opportunity to re-enter when the market is overly pessimistic.
That's how the market cycle works, and why it goes up and down. If people didn't play this game, there would be no ups and own for some to win and others to lose. Buy low, sell high, and repeat. It's all about money, and nothing to do with whether the product or company is any good.
Kelly says the cryptocurrency market will bottom out in the near future, so all the negativity from investors will likely be short lived. He gives 2-3 months for the mid-term rallying and bull run to start up in Q4 2018.
As Japanese and possibly other governments begin to tighten regulations on the cryptocurrency market to "clean it up" and legitimize the crypto sector, this will turn into a positive in the ling turn for more investors to dip their toes into. Less scams and more security will give potential investors more to trust about the market and cryptocurrency exchanges.
"Japanese exchanges were ordered to improve business conditions [by the government]. It's actually a good thing. Short run it's going to be a little tough because they're stopping new accounts from coming in but actually they're cleaning up the system. They're making sure it's more robust. Making sure it's better for people."
The South Korean government is another that's preparing a cryptocurrency regulatory market. Cryptocurrency exchanges are going to be regulated like banks to prevent hacking and money laundering. This will legitimize the cryptocurrency sector to protect investors, setting an industry standard for businesses.
The last point is that there is no more liquidation of bitcoins from Mt. Gox, at least for now. In 2018, Mt. Gox sold-off tens of thousands of bitcoin, and helped precipitate the bitcoin crash from it's meteoric height. Any momentum that was being pushed from other buyers was countered at this time, possibly influencing more people to sell.
With Mt. Gox delaying more selling of bitcoins until early 2019, this creates a favorable factor for bitcoin optimism. A major factor of market sell-offs is off the table for the mid-term rally potential.
"Mt. Gox is going into rehabilitation and they're going to distribute the rest of the $1 billion worth of bitcoin. But here's what is great about that, they're not going to distribute it until quarter 1 of 2019. All of the sudden everyone thinks there is going to be a wave of selling. Not happening now"
These three factors could make the bitcoin and cryptocurrency market boom again in time for the mid-term, and create the next rally and bull run into 2019.
Thank you for your time and attention. Peace.
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I read an article today about the central bank in Switzerland that is 60% owned by the central banks of the world. It is essentially their central bank. They released a 25page report about how unsustainable bitcoin was because of how much power the mining consumes.
I subscribe to the top newsletters focusing on blockchains and their cryptos. The Editor shot such a big whole in the nonsense of the report... He listed the amount of power used by ATMs globally. Its a lot more than what is used for bitcoin mining. He gave the amount of power all the banks of the world use for their servers, desktop computers, heating and cooling. Yep, you guessed it. Many more times the size of power required by blockchain mining. His conclusion was that this kind of bunk reporting is simply another industry trying to protect their existence. It's another example of the loud and obnoxiously titled articles we see everyday on why Bitcoin will die.
I have news... There is far too many governments and industries in the background figuring out how to position themselves in blockchain technology. The savings alone will drive the adoption of blockchain. The banking industry in the US alone has calculated a saving of $39B a year.
Another technology newsletter writer recently attended the Token Summit and the conclusion was what I've told dozens of people over the past year. In 2-4 years, all stocks, bonds, ETF, funds, real estate, etc. will be tokenized and trade 24/7 just like the cryptos do today. Trust me. The blockchain future is incredible. People can either listen to the nonsense in the news and miss this opportunity or they can ignore the noise, make some investments and watch their financial lives dramatically change over the next 10 years. The market is now projected to be as large as $20T. Today it sits at $250B. Ponder on that opportunity for a minute.
By the way, nice post.
That's good to know about the power differential, bitcoin uses a lot, but not as much as legacy banking ;) Predicting the future is hard, but the trend seems to be going that way as you say. Are you buying more bitcoin now in anticipation of the future? Thanks ;)
Predicting the future is definitely hard and there is no shortage of talking heads doing just that. There was recently two billionaire Wall Streeters that put out $40T and $100T. Based on what, I don't know. But my newsletter editor was a VP for a big bank and then a hedge fund manager for 28 years. He is making his prediction using the internet as an analogy.
Boy do I wish I had more cash to invest. I'm managing my monthly cash flow to add more each month. If I had $1M cash, I would put at least 1/2 into cryptos right now. I say that based on what is happening in the background and the positioning that is happening with institutional investors, the wealthy and governments.
you are right, i am a banker and i can see all the great benefits of bitcoin over the old way banking and payment system going from Cards to ATMs to POS and merchant solutions, and overvalued shits... In the other side you have to know that the bitcoin network, infrastructure will eat a lot of peoples banking jobs and duties, which is creepy for them
The fiat system is failing day by day!
There will be a panic buying into cryptocurrrencies before the end of the year!
Gold and silver will also do very well!
Yeah, it's failing, but it's all upheld by faith and trust. Gotta get into people's mind to get them faith to go ;)
I think people who read the ongoing reports and news on trade wars and see finanicial reports with all the graphs or indicators would be able to see the dire consequences.
Those banksters are using well hone psychological tricks to affect fear and hopelessness in people’s mind!
The majority of people don’t use their reasoning, they depend on their emotion. So they will become the victims in the end! It’s diffucult to save all of them.
But it would be good to be able to help those sitting on the fence and bring a bit confused because they lack facts and information!
You are doing great work! Many thanks.
Cheers.
Yes, many potential Investors are not entering into the market not because Crypto don't have potential but because at this moment they are not feeling the secure and if more and more Governments will showcase interest in Crypto then these Institutional Investors can enter.
Yes, it's all about the profit game and it's the process of buy at dip and sell at high and we have to face these situations if we are entering into the Financial Market because no matter what every person wants to earn profits.
In my opinion Scams are the biggest issue of the Crypto Market and it's wrongly influencing the Crypto market and Crypto Project Teams and users have to be more vigilant to tackle the potential scams.
And the most important aspect in the situation of Red Market is controlling the mood swings and emotions because sometimes we drive ourselves in too much emotions and sometimes that will lead us to take some negative actions.
Thanks for sharing this post with us and wishing you an great day. Stay blessed. 🙂
Thanks for your optimism. I still vote for you because I am sure that you are one of the best witnesses. I've writen this post about adding steem dollar to binance and I think it's important for all the community. I voted for you as a witness two months ago and I hope for your support, thanks.
Thanks. It would be good to get it listed there, do it Ned ;)
I guess the strengthening of the security of the exchanges in Japan and Korea is great news for us.
This is casuing a bear but a bull run is coming up,big institutional money is cooming in and its why the exchanges have to be very secure!
Assume a scenario where a wall street investors come in with $200 m and a week later texchanges are hacked(with all this money just put in)...it would really bring more bad news for crypto!
Let the regulaations continue for the next 2 months as we wait for constitutional money .
Yup, it should boom, I guess I better buy in now ;)
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Thank you @krnel this amazing post.
for those of us with the smallest asset in BC is optimistic, because there is no significant loss in the small value of assets.
We remain a good audience to watch market movements.
Some of the coins need to die for others to live and proper. There are way too many coins in the market now.
Let's be careful. I heard this same logic from one of my favorite resource (mining) analysts this past week. He is assuming that all of the cryptocurrencies are actual currencies. This is ignorance. The number of coins are simply to the number of blockchain projects proposed, launching, developed or are simply scams. These are not like the currencies of every country. There are hundreds of useful and incredibly enabling blockchain technologies behind many of the cryptocurrencies. Sure some will fail because they are trying to do what another one is trying to do. Some are pure scams. But there is not a reasonable argument to support there being too many coins in the market. That would be like saying there are too many companies listed in the stock market and we need less of them.
There's is a difference between stocks and cryptos. Stocks have a tangible asset behind it and we practically own part of it. Coins are not share. Company owes investors nothing.
The real issue here is when it will hit rock bottom.
Besides that, it's not the first time cryptos goes down and then up again. I remember a similar slump back in 2014, and let's not forget the first time BTC got to the news as a currency used on the Deep Web.
But after all, we have to remember, this is NOT an investment instrument. Prices will go up and down.
I'm not sure what you mean "this is NOT an investment instrument."