Bitcoins - about to hit $5,000 per coin today!

[obsidian]

This guy makes a good point about Charles Hoskinson hyping up Cardano but where are the DAPPS?!

[obsidian]

Here's Charles Hoskinson's take on the future of Cardano, he's trying to work with African governments to use ADA:

https://zycrypto.com/millions-of-africans-to-benefit-from-cardanos-expanding-ecosystem/

Millions of Africans to benefit from Cardano’s expanding ecosystem

Cardano is making more headlines as it scores points in getting allies in Africa. So far, Africa has been largely untouched by most blockchain-based tech companies, but Cardano seems to have identified quite an opportunity in the continent. The news was broken by IOHK CEO, Charles Hoskinson, in a short YouTube video.

According to Hoskinson, Cardano is working with various African governments to develop digital entities that will open the gates for millions of people to benefit from the expanding Cardano ecosystem.

Forming New Markets

Going on, Charles opines that this move will greatly contribute to helping millions of Africans that have had no prior access to digital resources and services in setting up with these long-awaited growth opportunities. These benefits will include the creation of digital identities that can be linked to rich metadata, digital wallets, and payment systems.

Granted, this is likely to result in the emergence of a new larger market based out of the digital age. Charles estimated the new market in Africa to total around $5 trillion, something that makes this a high priority for the Cardano ecosystem as a whole.

Africa is Not Poor

Charles Hoskinson doesn’t believe that Africa is a poor continent as mostly portrayed on the global stage. According to him, it’s the lack of proper resource utilization that has stunted its growth.

With a new, more advanced system, the African economy will get the chance to prevent bad decisions and curb mismanagement. This way, the real wealth in Africa can be accessible to all since there will be more accountability.

Lessons From China

In Charles’ opinion, Africa’s current economic status is a parallel to China’s a few decades ago when most people on Wall Street thought of China as a poor country.

Once China put in place measures to facilitate smooth wealth utilization, the country’s economy sprung out and has achieved steady growth for decades. China is now one of the largest economies in the world.

Yeah well we know how corrupt those African nations are. Not sure if this is a good or bad thing. But kudos to him for working with them. I hold Cardano and thought about converting more ETH to ADA. But I also remember holding ADA back in 2018 when it completely crashed to the bottom. It is not immune to pump and dumps either. I guess all cryptos are at risk of pump and dumps. Even stocks have this issue. Amazon stock had major 30% price corrections also back in the day.

[Bindare_Dundat]

This guy makes a few good points talking about the fundamentals of ETH. For ETH to go to 10K it would need an inflow of +/- $950 billion. That would give it a market cap of $1.15 trillion. Of course that would require the crypto space to grow by a few trillion dollars because not all of it would go to ETH. It sounds crazy but look how far we've come already in 2020 / 2021.

I cant watch this right now but judging from what you wrote calls for 20k ethereum this year are never going to.materialize. neither will 10k.

[obsidian]

I cant watch this right now but judging from what you wrote calls for 20k ethereum this year are never going to.materialize. neither will 10k.

Go look at Bitcoin's price history in 2017.

It traded below $2,000 for almost half the year. Even in July 2017 it dipped below $2,000. Then in November - December it went from $6,000 - $19,253.

Many people would agree 2017 was a wild bull run. Well 2021 could very well exceed that. Sure BTC has a smaller supply so for Ethereum to match that would require a much bigger market cap. I am not going to say it is impossible judging by the past history of crypto. And the dollar is now different than it was in 2017. A lot more of it has been printed. Will ETH hit 10k or 20k before the end of the year? I don't know. Nobody knows. Is it impossible? No.

[Mayday]

This guy makes a few good points talking about the fundamentals of ETH. For ETH to go to 10K it would need an inflow of +/- $950 billion. That would give it a market cap of $1.15 trillion. Of course that would require the crypto space to grow by a few trillion dollars because not all of it would go to ETH. It sounds crazy but look how far we've come already in 2020 / 2021.

100B inflow would probably generate a market cap of 1T.

Market cap is last sale price x coins. It doesn’t reflect total capital investment, therefore less capital is required to jack the price. With such low market participation in a short time frame we probably only need 100B if that to jack the price of ETH to 10k+. It will also dump just as fast when money flows out.

The other one is scarcity vs price. The majority believe scarcity drives price, the more scarce something is, the higher the price. Supply/demand.

My argument is the market participants determine the value at any given point in time. At some price point they will also determine it no longer becomes more valuable regardless of scarcity which sets a ceiling on the asset market cap.

Models using scarcity as the primary driver will break at some point. There are always sellers in a market and there is a reason assets classes max out. Diamond supply is held back in order to control price but that is a reaction to the market deciding the peak value of diamonds. If they made them more scarce it wouldn’t drive up the price, people would simply buy less.

The market sets the price ceilings. Hence markets can overheat and the bulk of participants stop buying and it’s only a small last few who pump it up, then the market corrects to where the majority are happy to buy.

[Mayday]

For ETH:
330k x 0.031 is 10k
220k x 0.05 is 10k
The bet is the ratio increases as per previous years.


Meanwhile, I watched my first bitboy clip on YouTube and that dude has NFI. He is a prime example of not understanding scarcity and price.

Bitcoin is not running out. Owning a full Bitcoin is limited opportunity but there are 100M satoshis per coin (21,000,000,000,000,000 supply) which is 21 Quadrillion Satoshi supply. Price ceiling will be set when the market determines ultimately what 1 BTC is worth but we will always be able to buy Bitcoin in satoshi sizes. Price then increases by the money supply.

So onto my post above about scarcity vs price, at some point the market decides the price ceiling for 1 BTC. We can consider the largest market caps in existence and calculate price.

BTC 1T          —-> 60k
Silver 1.4T.     —> 84k
Apple 2T         —> 120k
Forex —> 6T per day
Gold 10T          —> 600k
Dow Jones 24T. —> 1.44M
Bond market 100T —> 6M
Real estate 100T. —> 6M

Silver, gold, forex, bond markets are the most likely to bleed capital into Crypto.

[El Diablo Blanco]

You guys do know that Russia controls Etherium

[Gitur]

bitcoin will definitely sky rocket again but so will eth and other cryptos. Its just a matter of time.

The issue is people go into the investment telling themselves they will wait it out as a long term investment but end up having no patience whatsoever and keep moving shit around.

most of these people dont have alot in the bank and are anxious to make a profit. imo dont play with more than you are willing to lose, too much stress. just invest and hold.

[epic is back]

pump pump pump

then dump

[gib]

With your belief in Bitcoin unicorn farts, you are much more like the milkman than me.

Dude, you can buy now, and enjoy a 10x return if BTC his 500K.

Or you could be like Mr Anabolic, and fight a futile resistance, and miss out on a 10x return (as he did by refusing to buy at 5K...). *In fact he actually was even defiantly refusing to buy at $300. Imagine, you have it all handed to you on a place. Your are part of a community that gives you a heads up on an opportunity. And you live in a 1st world with access to money where you can actually still secure your future. Instead you piss it away, talking about unicorn farts, while your opportunity slips away to Billions of other hungry humans who will soon scramble for piece of BTC en mass.

[Griffith]

Dude, you can buy now, and enjoy a 10x return if BTC his 500K.

Or you could be like Mr Anabolic, and fight a futile resistance, and miss out on a 10x return (as he did by refusing to buy at 5K...). *In fact he actually was even defiantly refusing to buy at $300. Imagine, you have it all handed to you on a place. Your are part of a community that gives you a heads up on an opportunity. And you live in a 1st world with access to money where you can actually still secure your future. Instead you piss it away, talking about unicorn farts, while your opportunity slips away to Billions of other hungry humans who will soon scramble for piece of BTC en mass.

If it does reach that amount, what timeframe do you see BTC hitting 500k?

[Bindare_Dundat]

If it does reach that amount, what timeframe do you see BTC hitting 500k?

Next week.


Joking obviously. 

I'm going to go out on a limb and say we won't even hot 100k this year so if that gives you a better time frame.

[Mayday]

If it does reach that amount, what timeframe do you see BTC hitting 500k?

500k will assume multiple peaks as no way will that happen in a single move without a major correction. Timeframe for multiple peaks is year end or start of 2022.

If we have a single peak it’ll most likely be over by end of June.

[obsidian]

100B inflow would probably generate a market cap of 1T.

Market cap is last sale price x coins. It doesn’t reflect total capital investment, therefore less capital is required to jack the price. With such low market participation in a short time frame we probably only need 100B if that to jack the price of ETH to 10k+. It will also dump just as fast when money flows out.

The other one is scarcity vs price. The majority believe scarcity drives price, the more scarce something is, the higher the price. Supply/demand.

My argument is the market participants determine the value at any given point in time. At some price point they will also determine it no longer becomes more valuable regardless of scarcity which sets a ceiling on the asset market cap.

Models using scarcity as the primary driver will break at some point. There are always sellers in a market and there is a reason assets classes max out. Diamond supply is held back in order to control price but that is a reaction to the market deciding the peak value of diamonds. If they made them more scarce it wouldn’t drive up the price, people would simply buy less.

The market sets the price ceilings. Hence markets can overheat and the bulk of participants stop buying and it’s only a small last few who pump it up, then the market corrects to where the majority are happy to buy.

Ok that's interesting thanks for clarifying. How does that work? Why would only 100B needed to move Ethereum's market cap from 200B to 1T?

Bank of America strategists suggested to Bloomberg that the price of BTC can be moved 1% for just $93 million. And it is estimated $40 billion dollars of the $1.9 trillion stimulus could find it's way into cryptos!

https://finance.yahoo.com/news/bitcoin-could-boom-430-ethereum-133606997.html

[Mayday]

Ok that's interesting thanks for clarifying. How does that work? Why would only 100B needed to move Ethereum's market cap from 200B to 1T?

Bank of America strategists suggested to Bloomberg that the price of BTC can be moved 1% for just $93 million. And it is estimated $40 billion dollars of the $1.9 trillion stimulus could find it's way into cryptos!

https://finance.yahoo.com/news/bitcoin-could-boom-430-ethereum-133606997.html

Say you bought ETH for $500. If someone buys today for $1,800 Do you receive $1,300? No. Only the person they purchase the ETH from receives the $1,800.

Lets create 1M gibcoins and he has all of them. I determine they are valued at $1ea and I buy 500k. The market cap is now 1M with a capital injection of 500k (2x). You then come along and you determine they are worth $10ea and you buy 100k for 1M. Market cap is now 10M with a 1M capital injection 10x).

That’s how it works. Same with the sharemarket. Volatility is inverse to liquidity where high volatility results from low liquidity and vice versa. It’s why bond markets are the most liquid in the world and also have the lowest yield. Big money flattens yield curves but increases liquidity.


The above also leads  into my posts about scarcity vs price.

We are seeing a ‘scarcity’ valuation reaction to Bitcoin right now.

Coins leaving exchanges = price is too cheap (what we are seeing currently)
Coins entering exchanges = price is high and a great time to get out

Supply has been leaving exchanges for longer than any previous crypto history. Even at 60k, coins were still leaving exchanges and decreasing supply. At the point where we see that trend reverse and supply increases, we will have a short period of lag before the market cycle top.

Does that help?

[OneMoreRep]

Bitcoin is taking a beating today.

Seems like a lot of media outlets are ganging up on it and Jerome Powell's latest statements aren't helping.

"1"

[Mayday]

Bitcoin is taking a beating today.

Seems like a lot of media outlets are ganging up on it and Jerome Powell's latest statements aren't helping.

"1"

They are wrecking anyone going long of late. 138M liquidated in 10mins yesterday. People don’t learn. Don’t go 10x margin then go to bed lol.

[Bindare_Dundat]

Bitcoin is taking a beating today.

Seems like a lot of media outlets are ganging up on it and Jerome Powell's latest statements aren't helping.

"1"

Well the media is certainly a source i trust. What did Powell say this time 

[OneMoreRep]

Well the media is certainly a source i trust. What did Powell say this time

The media is effective because it induces fear by way of misinformation. That's their best talent.

Powell said: "Crypto assets are highly volatile - see bitcoin - and therefore not really useful as a store of value"  "They're not backed by anything. They're more of an asset for speculation."

Now, I think our FIAT currency is just as volatile and losing value by the minute, but Powell needs to preach the sermon of the powerful dollar, as he holds the keys to the printing press. His description of BitCoin as an asset for speculation is harmful, as it makes investors worry that their money can disappear overnight, which in some instances it has when BitCoin drops by > 10%.

"1"

[Bindare_Dundat]

The media is effective because it induces fear by way of misinformation. That's their best talent.

Powell said: "Crypto assets are highly volatile - see bitcoin - and therefore not really useful as a store of value"  "They're not backed by anything. They're more of an asset for speculation."

Now, I think our FIAT currency is just as volatile and losing value by the minute, but Powell needs to preach the sermon of the powerful dollar, as he holds the keys to the printing press. His description of BitCoin as an asset for speculation is harmful, as it makes investors worry that their money can disappear overnight, which in some instances it has when BitCoin drops by > 10%.

"1"

Thanks for the summary.

[gib]

The fact that Powell even mentions Bitcoin in a testimony should be a telling sign to its future importance.

[gib]

Poor. Old. Mr Anabolic...

[obsidian]

It is always useful to have a second opinion on matters. The dollar is losing value though. So would people really want to get out of cryptos back into an asset like the dollar that's being devalued? I am not so sure about that. I sell all my cryptos what now? Oh shit I have dollars! What the fuck am I going to do with it? I either better spend it asap or invest it. In what though?!

[gib]

Well that's exactly what happens. Anyone who buys fiat with Bitcoin suddenly realizes they are holding in inferior asset destined to decline in value. So they often then quickly cash out of fiat and get back into the security of Bitcoin again. Its best just to HODL in my view...

[Mayday]

Your view changes depending on what your money can do for you vs what holding in crypto can do.

Life happens.

Just keep in mind that in a few weeks from now we will see the supply on exchanges begin to increase as the whales start to dump their holdings. Yes we will have a bull mad bullrun but we will have a massive dump afterwards.