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Can we ever see a $20,000 bitcoin again? These factors suggest it can!

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20000 bitcoin price

What to expect in this article?

  • Our views on why a $20,000 is not only possible but inevitable 
  • Our broad views on why this inevitability may never happen!

market crashMarket crashed 50% and people lost their shirts in the market.  Not just those that directly participated in the speculative market but those who took part through indirect mediums like retirement accounts.

No. 

That is not the story of crypto investors, although crypto investors have seen worse, that 50% drop in value was in the traditional stock market.  The good old 401(k) investments lost close to 40% in their value during the 2008 crash.  

According to some studies, people are still recovering from the 401(k) losses from the crash of 2008.

The US Stock market has been breaking one record after the other and has not seen a meaningful correction for close to 12 years now.  

Many studies and financial gurus are warning that a crash is coming and it will be nastier than the last one.  

Naturally, people are looking to move their money from the stock market and onto safe havens.  Gold used to be the safest asset to hold during a crisis, however, things have changed a lot since the last financial meltdown.

Now people have alternative asset class to consider: cryptocurrency. More specifically, Bitcoin.

The crash that cryptocurrency market experienced since 2017 peak of $20,000 to the low $3000s in 2018, people were naturally apprehensive about the space.

Now with bitcoin valuation of over $9000 per coin, the question started to linger in the space ‘will we ever see $20,000 Bitcoin again?’

Of course, no one knows for sure.  

Some speculate that Bitcoin’s price will be a lot higher than $20,000 and while some write it off as having seen its best days in 2017.

In this article, we will look at factors that support a $20,000 or more per bitcoin and factors that support a contrary view point.

Why a 20K bitcoin is easy!

Genesis factor  

How would you like  to own a piece of history?  Better yet, a piece of history on which all of tomorrow will be built on?  And what if I told you that you will probably be among the .0024% if you owned a full piece of that history?  Wouldn’t that make owning this piece even more special? That is what we are dealing with when it comes to Bitcoin.  It is born from the ashes of 2008 crash and has emerged into a powerful phoenix that is well on its way to shake up the financial systems across the world.  If nothing, this genesis factor will always work in favor of Bitcoin’s price as store(y) of value and an antique from the future.

1% factor

Moving from the sentimental aspect to a more ‘hard nosed’ logic.  In an interview by Max Keiser with Mark Yusko of Morgan Creek Capital, Mark states “So the idea that ten years from now we won’t look back and say that as a fiduciary of a pension fund, sovereign wealth, family office, etc. you had to have exposure to this asset, is crazy.”  

“Bitcoin may potentially increase portfolio diversification because of its low correlation to traditional asset classes, including broad market equity indices, bonds and gold,” observes another investment outlook by VanEck titled “The Investment Case for Bitcoin.” 

Coincidentally, both of these viewpoints look at how 1% exposure to bitcoin drastically changes the portfolio performance because bitcoin is considered non-correlated (meaning, it doesn’t act in concert with market factors).  Academic studies support this diversification model, including a Yale Study that recommended 6%. We delved into the question: ‘Should I invest in Cryptocurrency?’ referencing this study.




Scarcity factor

limited bitcoinBitcon is not only limited, it gets scarce by each passing year.  The halving (reduction of number of bitcoins that can be mined per block) has always triggered a rally in bitcoin’s prices.  Many industry experts expect a similar action in 2020. VanEck’s study notes “Given the scarcity induced by halvings, the price of bitcoin has historically increased following halvings.”  

According to some, almost 4 Million Bitcoins are lost forever.  That means, the practical total supply will always hover around 17 Million.  

Store of value

Millennials prefer Bitcoin over gold. And Millennials are a major part of the workforce.  Whenever the working class backs a particular asset, it continues to gain momentum.  With Bitcoin, Millennials look to it as a store of value. Big name investment companies, like Fidelity, are giving the option to invest in bitcoin related investments to millennials based on the interest in this asset class.  There are many reasons why Bitcoin is better store of value than gold. You can read them here in the article titled Top 10 reasons why Bitcoin is better than gold.”

Endorsement from leaders 

Endorse Bitcoin“It looks like it will be something like six months to a year after the halvening that we will cross $250,000 per bitcoin…it is pretty likely we are going to hit $250,000 by the end of 2022 or early 2023.” That exorbitant price goal is not from some Bitcoin fanatics. That prediction comes directly from Tim Draper, who has made over 200 Million on Bitcoin and has successfully invested in projects like Baidu, Tesla, Skype, etc., “Bitcoin is the place to invest your money if you’re a millennial”, billionaire investor Tim Draper told Fox Business.

It is not just Tim Draper who has been advocating bitcoin as an investment of choice for the future, Jack Dorsey, CEO of Twitter, who is not only advocating Bitcoin as a better investment, he is using his resources to make bitcoin one of the best investment assets and best technology out there.  His team is working on Lightning Development Kit to accelerate payments and lower the fees while scaling bitcoin platform for mass transactions.

When people who know the business of business and technology behind technology back bitcoin, it naturally validates Bitcoin’s value.

Halving

Halving is the big elephant in the room, we cannot not talk about it when we talk about price prediction for Bitcoin.  Each time bitcoin went through the halving cycle, its price saw a moonshot. Tim Draper expects that the 2020 halving should take Bitcoin to $250,000 as early as 2022.  Some argue that the current price already factors the impact of Halving while many bitcoin veterans disagree. What will this halving do to bitcoin’s price? If Tim Draper says $250K is feasible, then the $20,000 seems like an easy milestone to surpass!




Innovations coming to Bitcoin 

bitcoin latest InnovationsMany brilliant minds are working with bitcoin to bring many more innovations to the platform.  And the traditional investment giants are looking to bring more liquidity to Bitcoin.

  • RSK is bringing smart contracts to bitcoin
  • Bakkt brought Bitcoin options and Cash Settled Futures
  • Lightning Network is expected to bring scalability, instant payments, lower cost and cross blockchain transaction capability onto Bitcoin
  • Fidelity Digital Assets is building enterprise-grade bitcoin custody and other services for large institutions.

The glowing endorsements, evolving technology, halving, emergence of Bitcoin as store of value and scarcity, all work in Bitcoin’s favor to support and surpass the $20,000 highs. 

Why bitcoin may lose its base and never see $20,000 glory?

Getting off the bitcoin high-horse for a minute here, let us now examine the factors that could thwart bitcoin’s attempt to reach/cross the $20,000 threshold.

Central bank digital currency – specifically Digital US Dollar

Leaving the world of crypto fans and bitcoin maximalists, which doesn’t even constitute 1% of the populace, the rest of the world is blissfully oblivious to Bitcoin and its offshoot cryptocurrencies.  This means, when the US Government comes up with its own Digital Dollar backed by Government guarantee (whatever that means in the fiat world), the general public will happily accept it without ever touching the bitcoin and crypto world.  This could seriously undermine the Bitcoin’s progress in terms of its adoption in the world (although it may not dent the ‘store of value’ aspect).  

Accenture is already part of Digital Dollar Initiative to study the feasibility of a digital dollar.

Government’s have a lot to gain including keeping track of every dollar ever created/spent, citizen financial behavior and elimination of counterfeit. 

Given the numerous benefits it presents, we could soon see a Digital Dollar based on Blockchain technology backed by the US Government.  

Some industry experts claim this to be the ‘kiss of death’ for bitcoin.

While others point to the fact that whether fiat wears the mask of ‘digital dollar’ or it stays as a digit in our bank accounts – the fact that it has no upper ceiling will always keep it inferior to Bitcoin and cryptocurrency as a whole.  

Who is right?  Only time will tell.




Exchange support

While we don’t like Ripple – it has been slowly encroaching into Bitcoin’s dominance as the trading pair on many exchanges.  Along with Ripple, Ethereum, USDT, USDC, etc., have all been added as trading pairs on many exchanges.  While being trading pair is not the whole value proposition of Bitcoin, if it continues to lose its dominance as the trading pair on major exchanges, then in theory, it should reduce the demand pressure on bitcoin’s availability.  This could have a negative impact on 

Sentiment shift to a fork

At one point, Bitcoin Cash threatened to take the dominance of Bitcoin as the king of cryptocurrencies. Then Bitcoin SV gained popularity. Every time a bitcoin fork claims technological superiority – people panic.  

There is no way for anyone to predict if Bitcoin will always maintain its dominance or if a future fork will actually become the better version of Bitcoin to claim the throne?  If that happens, what happens to the value of BTC? And will that crash the bitcoin prices to the oblivion?  

We have to wait and see.  For now, Bitcoin maximalists maintain that Bitcoin will always remain the king of cryptos. 

Conclusion

Personally, we side with Tim Draper and Jack Dorsey when it comes to Bitcoin, and in our opinion we will not only see a $20,000 per bitcoin – it will be but just a small milestone in the many milestones that bitcoin will break in the coming decade.  

Take our opinion as you like it, but there it is. 

Thank you for reading and sharing this article.  You can highlight any text on this page to share on social media.

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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CryptoSpace

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

CryptoSpace

Crypto Roundup: All Your YouTube Influencers in One Place

Published

on

crypto news

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: The United States Just Brought Bitcoin into the National Conversation!! | Cryptocurrency in 2021

Date: 16-Nov-20

  • Former National Treasurer and the new US Senator Elected, Cynthia Lummis, said Bitcoin fits the bill as a good store of value as it is finite and limited, unlike the inflationary fiat currency.

  • Grayscale adds over 7000 more bitcoin in just the last 24 hours.
  • Just over 16% ETH staked for ETH 2.0 launch on Dec 2 2020.
  • Bitcoin Cash hard fork takes place tomorrow.

Crypto Zombie

Video Title: WARNING!!! BITCOIN 2017 BEAR FRACTAL RETURNS!!! BTC WORST CASE SCENARIO…

Date: 14-Nov-2020

  • Institutional money starts flowing into bitcoin.

  • Paypal goes live with its crypto trading platform for eligible customers. They have also raised the buying limits from the initially set $10,000 to $20,000 per week.
  • DIA, an DeFI Oracle provider, integrates with Polkadot.

Ivan on tech 

Video Title: BITCOIN WILL DO SOMETHING INSANE THIS WEEK!!!! -30% DUMP AHEAD vs $20,000 PARTY – Programmer

Date: 16-Nov-2020

  • Bitcoin could make a big move this week, either hit 20K or we may see a 20% to 30% drop
  • Chainlink partners with Etherisc to deliver agricultural insurance in Kenya.

Ellio Trades

Video Title: UNLOCKING $100 TRILLION? This low cap gem seeks to bridge CeFi and DeFi

Date: 15-Nov-2020

  • DeFI could be similar to the ICO craze in 2017
  • Low cap gem: AllianceBlock
  • AllianceBlock is bridging the gap between DeFi and CeFi
  • AllianceBlock Partnership with Orion Protocol and Chainlink.

Chico Crypto

Video Title: WARNING! An “EVIL” Entity Wants Control of BITCOIN…

Date: 15-Nov-2020

https://www.youtube.com/watch?v=45Ac-5y2ofg

  • 90% of Bitcoin’s mining pools are controlled by China based mining pools
  • As the value of bitcoin goes up – there is a threat of push to ‘control’ the network from China
  • Binance is looking to push through the 50% mining share and Chico believes this could be dangerous

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

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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