Just Ignore the Media and Buy Cryptocurrency

In a Barron’s article about bitcoin, editor Randall Forsyth wrote that basically all it takes to kill a good rally is for two people to talk about it on the train.  

It’s surprising that Barron’s would even be writing about bitcoin, but Forsyth’s opinion is not surprising. He sees the bitcoin rally as nothing more than another instance of the Dutch “Tulipmania.” Here’s what he wrote in the May 27 edition of Barron’s: 

Bitcoin’s fans claim it is a technology and not something that can be valued like a stock, which probably echoes conversations in Amsterdam coffee houses in the 1600s to rationalize paying any price for tulip bulbs. 

He’s talking about the tulip bulb craze in Holland in 1636–37. At its peak, a tulip bulb could get you a mansion. At the bottom, a tulip bulb could only get you a flower. 

Forsyth narrated a story about two people on a train excitedly talking about bitcoin and likened it to a similar conversation he had heard about tech stocks just prior to the end of the tech-stock bubble in the late 1990s. He says that because bitcoin and other cryptocurrencies have begun to soar, they have caught the public’s attention and  imagination just like soaring dot-com stocks did before 2000. Who knows, maybe Forsyth wrote his article on an original Royal typewriter.  

Two days later, Bloomberg piled on with a follow-up article on May 29 listing five reasons to be skeptical about bitcoin. The Dutch tulip craze was mentioned again.  

Note the timing of these articles (May 27 and 29). Bitcoin’s price peaked on May 25 at $2,764. About 48 hours later, it plunged to $1,856—a 33% drop. Soon thereafter, the negative articles started coming out.  

While bitcoin has already rallied above the May 25 high to $2,800, this resiliency seems to be doubted. People are wondering, “Is it different this time?” 

Let's look at two reasons why the cryptocurrency rally is far from over. And in fact, for skeptics, I’ll expose the one question you need to ask yourself in order to put things in perspective … and begin profiting from the cryptocurrency bull market.

 Ignore the Skeptics -- Listen to These Guys Instead 

The main stream media still has no clue about cryptocurrencies. When the bitcoin correction started, Teeka Tiwari warned that bitcoin doubters would start getting loud. But he explained that bitcoin had been declared dead more than 125 times -- before the latest obituaries from Barron’s and Bloomberg. 

As Mark Twain put it, “The story of my demise has been greatly exaggerated.” 

The true experts in cryptocurrencies, who really know what’s going on, are the folks to listen to. Last month, at the Consensus 2017 blockchain conference in New York, presentations were given by some of the greatest leaders in the cryptocurrency space. And none of them likened bitcoin to tulip bulbs. They said exactly the opposite.  

One revealing comment was by Michael Moro, the CEO of Genesis Global Trading, which is an institutional trading firm that has traded over 1.5 million bitcoins. (Calculate that at today’s dollar value!)  Here’s Michael Moro’s view: 

In the last six weeks, I’ve gone from having millionaire conversations to billionaire conversations. There’s plenty of money still left to be deployed. 

This is serious. His institutional clients in 2016 and early 2017 who were interested in bitcoin were millionaires. Today, the people interested in buying bitcoin are billionaires. 

Then there's Brian Kelly, who founded Brian Kelly Capital Management (BKCM). He expressed a similar view at the conference:  

Six months ago, we started getting interest from family offices. Now we’re getting interest from venture capitalists and smaller institutions. And I think in three to five years, we’ll be getting interest from pension funds. We are still in the first innings. I would use any price pullback to buy; there is a wall of money coming. Just 1% of institutional money and we would see an explosion of prices. 

The influx of new institutional money is significant. Hedge funds alone have $3 trillion in assets under management. If a small percentage of those funds are invested in bitcoin, it could lift prices to over $4,000. 

But institutional money isn’t the only thing pushing bitcoin higher. Governments in many parts of the world are essentially making the cryptocurrency “legal tender.”

Japan Leads the Way 

Just look at what’s happening in Japan. On April 1, the country authorized bitcoin as a legal method of payment. Now the results of this action are becoming apparent. 

Major Japanese companies are starting to enter the cryptocurrency exchange market. And “major” means major. These companies have market caps in excess of $1 billion-plus. 

One example is SBI Holdings, a $3 billion financial conglomerate, which is creating SBI Virtual Currencies – an exchange between the Japanese yen and cryptocurrencies. SBI manages $1.7 billion in assets. 

Other examples are Money Partners Group and Kabu.com Securities. Money Partners Group is a foreign exchange margin-trading business with over 270,000 client accounts. And Kabu.com Securities earned nearly $24 billion in revenue last year. 

Why is this important? Because these are the companies that are setting up major infrastructure to process the wave of money flowing toward bitcoin. 

And the money is coming. Consider one more comment made at the conference by Brian Kelly: 

Japan’s regulation is big news. Japan does $10 trillion in foreign exchange trading quarterly. That liquidity is coming to cryptocurrencies. 

What’s happening in Japan will soon be happening across the world. Are you ready?

What You Need to Ask Yourself 

If you know some skeptics, just show them this question – which is for them to ask themselves. Tell them that if they answer NO, they should go out and buy some bitcoin. 

QUESTION: Is it too late to start using the internet? 

I doubt anyone would answer yes – not if they are smart enough to know a steemer. And besides, it’s obvious that the internet is a useful technology. It makes life easier. People who were once skeptical of it are now users of it. 

What the internet did for information, bitcoin and blockchain technology will do for money, contracts, and trade. Money is just the first application. There are lots more. 

Tell your friends, if they have a few bucks in their savings account, they should buy some bitcoin and take that first step into the new world. 

The foregoing was gleaned from information published by PalmBeachGroup, which I highly recommend.

In my next article, I will focus on whether Bitcoin is standing in for Gold, since Gold is a manipulated market.

Regards,  

Wizzin