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9 Signs that Bitcoin is metamorphosing from a cult into a religion

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Bitcoin adoption

Most modern religions were cults, at some point in their journey.  

Each of these modern religions were subject to persecution, shame and resistance from establishments.   Whether it’s religious beliefs or modern technology ideas like internet, they are met with resistance by the establishments whose roots are being shaken.

Many cults never go through the process of transformation into a religion, they either continue to exist in their small gatherings or die down with time and forgotten forever.

10 years ago, Bitcoin was a cult that existed exclusively in the realms of the nerd-verse.   Today, the President of the United States is making (uninformed) statements about it.

Every cult goes through phases in the metamorphosing process of becoming a religion of the masses.  These are the signs that must be present for any cult to be recognized as a religion.

While many religions are controlled by few interest groups, Bitcoin is different because it is not governed by people, it is governed by Math.

1. Strength in Numbers

What started with 2 wallets on November 29, 2011 has now crossed over 40 Million wallets.

 

Source: Bitcoin.com

Companies like Fidelity, Bakkt, JP Morgan, etc. are gearing up to make ‘entry’ into Bitcoin seamless.  When these projects become fully operational, we will see these numbers multiply in no time.

When everyone is invested in Bitcoin, whether directly or indirectly, the rhetoric will change from negative to positive to ‘new normal’.

2. Attention from the media

‘There is no bad publicity’.

Fake newsMedia reads that as “there is no bad SENSATIONAL news”.  Most media outlets have stopped caring about ‘journalism’ or ‘passion for truth’;  they are now after only one thing: what’s sensational?

Bitcoin was sensational many times, such as:

  • Silk road fiasco
  • Gox
  • Declaring bitcoin dead 350+ times (that’s 350 sensational pieces)
  • Ban of bitcoin
  • Acceptance of Bitcoin in Japan
  • Bitcoin as the new gold
  • Trump’s uninformed comments
  • Bitcoin projected as ‘national security’ issue
  • Facebook’s Libra and its impact on Bitcoin

The list goes on.

Bitcoin has been providing constant staple of ‘sensationalism’ for 10+ years but more consistently for the past 2 years, ever since Bitcoin reached its all time high and then crashed.

What this conversation has done is it brought Bitcoin to more and more people’s consciousness and that is helping Bitcoin and Blockchain space as a whole. People who are going into blockchain with a mindset of refuting its validity are becoming its ardent fans.

These people would not have looked into the technology if not for the media’s hunger for ‘sensationalism’.

3. Learned join in

bitcoin knowledgeMany people who looked at Bitcoin and blockchain technology were skeptics at the beginning.  They approached blockchain technology to prove its ‘validity’.  When they realized the true potential of this technology – they dove in head first.

We alluded to the exodus of talent from conventional spaces into blockchain space in our Bull Stampede article.

From executives of Goldman Sachs to BlackRock, Facebook to World Bank, people from financial services firms to executives from technology companies, all these individuals have left their secure and high-paying jobs to explore new avenues in the blockchain space.

4. Rich join in

Wherever the talent goes, finance flows.

Bitcoin richesSome of the richest people in the world have directly or indirectly looked into blockchain technology, primarily because of bitcoin.

We have heard numerous stories of people who were skeptics at first and who turned into advocates of bitcoin and blockchain because of its potential for disruption and greater good.

These rich men with their access to capital have largely contributed to the momentum in the space.  Without the involvement of the forces of the rich – bitcoin would not have gained the momentum it has in under a decade.

Everyday there is a new name that gets associated with bitcoin in some shape or form.

5. Outcry from the established religions

Bitcoin RestrictionsWhen a cult starts amassing followers and momentum is at its peak, the established religions that have a lot to lose spread false propaganda to curb the momentum at its roots.

This is usually done by either sanctions, restrictions or outright punishments.

With bitcoin, the establishments that stand to lose a lot are the financial institutions. So they started putting restrictions on what you can and cannot do with your money’.

For instance, even to this day, most credit companies do not let you buy bitcoin and most banks do not allow you to transfer money to a crypto exchange. It seems ludicrous that banks who are nothing more than custodians of OUR money are dictating what we can or cannot do with our money.

Financial institutions know that if they let blockchain technology and bitcoin to proliferate without any hindrances, it will annihilate the very existence of these financial institutions.

For instance, there are examples of transferring 193 millions of dollars in value with 10 cents in fees; compare that to $10,000+ in fees needed to transfer using traditional financial routes with banks.

What do you expect these financial institutions to do when they know that these kind of efficiencies could be the end of their useful life?

6. Copycats sprout

We have around 2000+ crypto projects that are listed on Coinmarketcap.  Of these, there may be 2% projects that will eventually survive and thrive in the blockchain space.  That means, 98% of these projects are bitcoin wannabees.

Whenever a cult gains momentum, there will be 1000s of wannabees and lookalikes that try to emulate the success.

These emulators are an indication of the validity of the original cult that is slowly but surely spreading its roots.  Many of these emulators will eventually decouple from their off-sprout ventures and join the main cult that started it all.

7. Resistance from the Government

Government BitcoinGovernments are in place to establish order. Order is established through power.

The source of this power can be through financial incentive system or through religion.  When a cult tries to demystify religion or dependence on financial system – it rattles the governments.

Bitcoin is unsettling the very core of financial system.

If Bitcoin and Blockchain technology were to be adopted, you can no longer print ‘unaccounted’ money to your whims.  You cannot have a system that facilitates 21 TRILLION dollars of unadjusted funds in Defense spending.

Bitcoin brings accountability to wealth generation and spending, and can help trace how each cent was spent.

8. Turning hardcore non-believers into converts

The last leg of a cult’s transformation into a religion of the masses is the conversion of hardcore non-believers into believing in the new religion.

They don’t immediately start following the new norm but at least they start acknowledging its existence and validity.

That is where we are with Bitcoin. Peter Schiff, who is famously known as ‘Gold Bug’ who talked against bitcoin for so long has recently admitted that he holds bitcoin and that ‘it has value’.

9. Penetrating into lives of the masses

At the beginning of this article, we talked about how within 10 years, 2 wallets turned into 40 million.  This is before bitcoin is the integral part of the lives of the masses.

When a company like Fidelity makes bitcoin available to its 30 million investor base – that marks the real penetration into the lives of the masses.

These companies will carry bitcoin into the homes.

Thank you for reading the article.

Subscriber-Banner-smallIMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

Buy us a Coffee: Keep information FREE. We do not sell what we research. A small tip from you can help us bring you more content like this for FREE.
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About the author

RK Reddy holds two Masters degrees, one in Accounting and another in Business Administration with over 15 years of experience in the financial services industry.

RK Reddy is an ardent fan of Blockchain and Cryptocurrencies. You can see the excitement about this new blockchain technology in every article on Cryptotapas.com. Sometimes this excitement leads to an overly optimistic view. Guilty as charged. RK Reddy says what may seem like an ‘overly optimistic expectation’ today may become an everyday norm in 5-10 years; look at the history of cars or airplanes, Blockchain and Cryptocurrencies belong to a similar frame of reference.”  Of course, that is just his opinion.

 

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All Roads Lead to $100K Bitcoin: Various Perspectives that Support $100K BTC

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Bitcoin to 100K

Bitcoin to 100K

There are a lot of theories in the crypto space that argue that Bitcoin will reach $100,000 before the next halving.  Some even argue that we could reach that price point before the end of 2021.

Here we have compiled a few perspectives that support a higher price point for Bitcoin.

IF we missed any, please let us know and we will be glad to add it for others to read.

Bitcoin’s ability to reward savers

If you saved $100,000 throughout 2017, today its value would have been $94,000, a total loss of 6% due to inflation. That is without considering the fees and hidden charges that institutes charge.

Even if you invested in the S&P 500 for 12 months at $8333 each month throughout 2017, your portfolio value today would have been $110,000.

If you saved $100,000 in Bitcoin throughout the 2017 (prices ranged from $920 through $14,000 during Jan 2017 through December 2017).  For the purposes of this comparison we are using the last week prices from each month as available on Coinmarketcap historical snapshots.

$100,000 invested in equal amounts throughout 2017 would look something like this.

Bitcoin to 100K

Since 2017, Bitcoin price has crashed and rebounded.  At the lowest point of the crash of $3000 per bitcoin, your portfolio value would have been $144,000.

In today’s average price of $16000 per bitcoin, your $100,000 savings would have been worth $770,000.

Due to its increasing demand and reducing supply, Bitcoin is expected to reach $100,000 in the next 4 years. Some models show that bitcoin will be worth $1 Million by 2030.

Only time will tell us whether bitcoin reaches these prices or not, but point being, no other asset of any class has crazy growth predictions like Bitcoin has.

Stock-to-flow ratio

According to Plan B, Gold had the highest stock-to-flow (SF) ratio of 62.  That is, it will take 62 years to produce the gold that is currently in the market.  In other words, you cannot willy-nilly inflate the supply in a year or two due to how scarce gold is and how difficult it is to find and mine it.

Current SF for Bitcoin is 25, however, by the end of 2020 or 2021, this could jump to 50.  By the next halving in 2024, Bitcoin could surpass the SF of gold.

According to Plan B, “The predicted market value for bitcoin after May 2020 halving is $1trn, which translates in a bitcoin price of $55,000. That is quite spectacular. I guess time will tell and we will probably know one or two years after the halving, in 2020 or 2021. A great out of sample test of this hypothesis and model.”

However, following the trajectory of Plan B’s SF analysis, Bitcoin could easily reach $1 Million dollars by 2030, according to some commenters.

Stimulus and unlimited printing of fiat

COVID has exposed another flaw in the fiat system.  It is that governments can print as much money as they wish whenever they wish to do so.

Whenever governments resort to simply print money without having a basis in asset value or growth in GDP, it erodes the value of the fiat in circulation.

This is what happened to Argentina, Venezuela, Zimbabwe and more.  

The US dollar has lost over 99.97% value since 1900.  For instance, whatever you could buy with $1 in 1900 will need $31 today.

COVID has added salt to the wound for fiat.  It exposed the blatant fact that governments can and will print money to their whim without regard to the inflation and impact on savers.

This increased supply in fiat helps stock market and market liquidity which in itself helps people who are invested in the stock market and other vehicles which is generally the wealthier part of the society.

Other factors strengthening the crazy Bitcoin price predictions

  • Institutional FOMO, for instance, Square, PayPal, Grayscale, etc., entering the market
  • Easier onboarding of new retail investors
  • Greater technologies and DApps being built on Bitcoin 
  • Great DeFi services to lend and borrow money
  • Globally accepted single denomination that does not need to be converted in the future (with enough places accepting bitcoin)

What other factors do you think will contribute to Bitcoin’s shooting past the $100,000 barrier?

Let the FOMO begin…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

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Crypto Roundup: All Your YouTube Influencers in One Place

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Crypto Roundup

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: Bitcoin Will Be OVER $20,000 By Christmas 2020! BIGGEST WEALTH SHIFT OF OUR LIFETIME! Cryptocurrency

Date: 19-Nov-20

  • World’s biggest wealth shift of our lifetime is happening right now and no mainstream media is talking about it, except CNBC.

  • Preston Pysh predicted on August 26th that: “Bitcoin should be reaching its all time high by Christmas.”

  • If you are looking to buy a dip, there may not be one.
  • Ricardo Salinas Pliego, a mexican billionaire, has just revealed that 10% of his liquid assets are into bitcoin.

Lark Davis

Video Title: STOCKS HIT NEW HIGHS! WILL COVID VACCINES LEAD TO MEGA PUMP IN 2021? [Are You Ready?]

Date: 19-Nov-2020

  • Stock markets and bitcoin pumps higher on the news of the second successful covid vaccine.
  • There could be more chances for the new stimulus. Means more inflation, more debt and simultaneously pumps stocks, gold and bitcoin.

Crypto Zombie

Video Title: BITCOIN $18.5k TOP!!?! DON’T BE FOOLED!! HODL FOMO BEGINS!!! $TRILLIONS FLOOD!!

Date: 18-Nov-2020

  • Overall sentiment of Bitcoin has changed drastically from ICO craze in 2017 to a time where people are FOMOing to own more bitcoin.

Ivan on tech 

Video Title: BIG WARNING TO ALL HODLERS!!!!!!!!! DO NOT GET REKT!!! BITCOIN $18,500 REJECTED – NOW WHAT?

Date: 18-Nov-2020

  • Ivan expects bitcoin to shoot past $20K resistance before end of this year, giving it 85% probability

Chico Crypto

Video Title: World’s Most Powerful Turn BULLISH on BITCOIN

Date: 19-Nov-2020

  • All those who hold big bags of Bitcoin will come out of the shadows to talk up the Bitcoin rally, a $20K bitcoin could be on the cards before the end of this year
  • Ethereum mining could act as a big catalyst for Ethereum’s price
  • Big companies like google could play a bigger role in mass adoption of crypto

Let the FOMO begin…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Lessons from the Veteran HODLERS to the Newbies!

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Lessons in Crypto

For all those who entered the crypto market after the 2017 bull run – here are few lessons from the HODLERS from the last bull run(s).

This is our attempt at making all you newbies aware of the mistakes veteran cryptoers did.

Let’s get started…

Don’t FOMO in to all the hype

FomoIt’s hard not to FOMO in crypto.  The trick is to make sure you don’t lose your shirt in crazy bets.  Always limit your bets to what you are comfortable losing.

The common ways you can become victim of FOMO are:

  • Following your favorite YouTuber without actually doing your own research on the project.
  • Investing into projects at the top.
  • Believing in promises of 100x or 1000x without any substance behind those claims.

HODLing far too long

Remember why you are into crypto – to make the money.

Never fall in love with your crypto, and HODL the tokens even when they are 10x and more.

Have a strategy to take your capital out before you become a HODLer.  

If you believe the project really has what it takes to go beyond 100x and more, just sell in instalments so as to not miss the ride.

One of the best ways to HODL is to take your capital in full and profit in tranches.

This rekt story will give you a right perspective of what it looks like, it’s one of many:

Don’t put all your eggs in one basket

Never go all in on one project. No matter how strong the project may look, even the projects with strong fundamentals don’t do well sometimes. 

And, you will be kicking yourself watching other projects go up and your portfolio just doesn’t seem to make a move.

And don’t over do it and have a portfolio with over 100 projects either. It is very difficult not to have invested in more than 15 projects but anything less than 20 is a good way to go, in our opinion. 

Put aside the share of Profits for Taxes.

One way you can get a good night’s sleep is by paying taxes. 

Always keep a habit of putting aside a % of your profits in USDT or other stable coins, as a reserve to take advantage of market volatility and also to meet your tax obligations. 

Exchanges are more evil during bull run

Foreign ExchangesDon’t trust exchanges. Yes we already know that, but they play more games during bullrun, some intentional and some technical. 

Many exchanges tend to go under maintenance when the prices shoot up too high too soon (Coinbase?), and you can’t sell. 

And the shady exchanges scam out before you know.

Regulators seem interested when the market cap of these projects goes through the roof, which then adds FUD around the project crashing the prices.  

Exchange may freeze funds pending investigations when such issues arise.

Take for example OKEx. Users are unable to withdraw their assets from the exchange for almost a month now, not certain if they ever will, and all that started with the legal dispute.

Never fall for Arbitrage gains

Arbitrage is when you buy in one exchange at a lower rate and sell on the other for a higher rate to take some profits. 

Some shady exchanges show a lot higher prices than the other genuine exchanges and when you deposit your assets to sell at those prices there won’t be actual volume to execute the trade. You may be stuck with either a high fee for withdrawal or other funky rules to take your own money out. 

Remember, there is no free Giveaway

Free CryptoScammers rise with the rising market.  

When the crypto market buzzes with all time highs – scammers cash in big time on newbies.

The most lucrative scam in crypto is ‘Free Giveaway’. Whether it be through YouYube ads or discussion groups and wherever they can get your attention.  Read this article on various sophisticated scams that are being deployed.

We hope these lessons help you through your trades and crypto life.  Stay safe and always DYOR.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

Continue Reading

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