Why is Bitcoin gaining $300.00 to $1,000.00 a day? Is this growth sustainable? Is this growth speculation? Is BTC being manipulated by a few key Whales? Well let us consider a few points and try and find out these answers.
Unlike the fall of 2017 run up of BTC and the other alt coins, this run up is different. In 2017 the run up of BTC was mostly individual investor speculators. The entire year of 2017 was full of exciting ICO's (initial coin offering) and great crypto currency coin run ups. I do believe that most of the interest in crypto's back then was people interested in 10X and 100X gains. Few people invested in crypto's for belief in the blockchain and decentralized ledger technology. Most people in 2017 got on the crypto bandwagon and hoped to make quick profits from crypto gains and turn it into Fiat profits. For some, this strategy may have worked. Many however, bought crypto's in the height of the run up (fall of 2017) and lost their shirt in the great "Crypto Winter" that would start in January 2018 and run until March of 2019.
During the Crypto Winter, most all of the weak hands were shaken out of the market. It is most likely that those same weak hands never came back into crypto's at this point. So who is buying crypto's now? Most likely it is institutional investors and commercial investors. In other words, not the small guy but big guys. BTC and other key alt coins have advanced much more since the fall of 2017. They are all better and have more advanced features. Corporations and institutions see the value of blockchain, smart contracts, atomic swaps, lightning networks and more. Many of these global corporations know that the future economy will be run on the blockchain and utilize smart contracts that are decentralized.
Is the current growth sustainable? Yes it is. In fact the current growth can and most likely will be sustainable for 30 plus years. Yes, I said over 30 plus years. Can you imagine that? BTC will be well over $1 Million dollars and approach $100 Million Dollars within 30 years from now. Remember, over $210 Trillion dollars of global assets will be converted onto the blockchain. It will take decades to complete this transfer. Big institutional investors know this fact and are positioning themselves for the next 30 year technological trend.
Owning a full BTC is most likely out of the reach for the common Joe. $12,000 plus BTC is now in the realm of corporate investors. Crypto currency whales can still manipulate the market. For years there will always be a threat of BTC whales being able to manipulate the market. My advice, is to just be cautious. As far as how low could BTC go, just remember this point. BTC will never go below mining costs for very long. Right now the cost of mining a BTC is a little over $7,000.00. When the halving comes in May of 2020 how much will the cost be then? Perhaps $12,000.00 or more? So as the cost of mining increases the lows of BTC will not go below that mining cost.
In conclusion, look for more global unrest. Look for unstable global economies, negative interest rates and quantitative easing (money printing) to infinity. There are only so many safe harbors to store wealth. Out of these few avenues, which can not experience confiscation? Which can be transported beyond boarders easily? Which can be safely stored in your memory? Which have a verifiable limited supply? Which asset will be absolutely needed 30, 50, 100 years from now? We know the answer. Bitcoin
image from: youtube channel crypto- bit brothers
