Merry Christmas Eve everyone, I was suppose to do this episode yesterday but a few things delayed me. I hope everyone enjoys the holiday season.
Getting down to business, currently writing this Bitcoin is at $23,500. It has been one hell of a month for Bitcoin breaking its all time highs multiple times, while not correcting heavily. This past month the value of bitcoin has soared by $4350 as I’m writing this. In previous episodes I have discussed the driving forces behind the bullishness of Bitcoin but today I would like to share with you a 6 year old article from Forbes list.
I dug this gem of an article up written in December 6 years ago. I would like to summarize and give my opinion also on each of the phases.
(1) Experimentation Phase. (2009–2010)
* No real value associated with Bitcoin. Hackers and developers playing around with the source code. Experimenting with Bitcoin as a medium of exchange.
(2) Early Adopters Phase. (2011–2013)
* Interest from investors and entrepreneurs started to grow with substantial press coverage in the wake of the Silk Road bust. First generation of Bitcoin-related companies (exchanges, merchant processors, wallet providers, etc.) started. Potential began to shine through poor management.
(3) Venture Capital Phase. (2013–Present)
* World-class VCs started investing in Bitcoin companies and rapid ramp-up is already outpacing the early days of the Internet. VCs poured more than $90 million into Bitcoin-related businesses in 2013 and more than $300 million in 2014 (compared to $250 million invested in Internet-related businesses in 1995).
(4) Wall Street Phase. (2015?)
* Institutional investors, banks, and broker-dealers begin moving money into Bitcoin. Rising price and volume (in addition to development of derivatives) become the catalyst for mass adoption as retail investment follows.
(5) Global Consumer Adoption Phase. (?)
* Only happens if (i) companies continue to innovate and make it easier for consumers to buy, hold, and spend Bitcoin, (ii) volume expands dramatically so that large merchants can start accepting payment in Bitcoin, and (iii) Bitcoin awareness continues to rise with these developments.
Being 6 years old, this was forecasting the future perfectly in my eyes. We are currently in phase 3 of 5 heading into phase 4. The VC’s and the big money from institutional vehicles are heading into play. I believe this along with the halving is why we are seeing such a high price increase. I was reading the greed and fear index for Bitcoin and it’s lower than it was a week ago. Pricing at $23,500 would usually be charted around 95+ extreme greed, today its at 86/100. With institutional money waves coming into play I believe bitcoin will see a 5x-10x from where it is right now.
As a reminder, only invest what you can. Always do your own research. Don’t take my advice without doing any homework and try not to let me persuade you to buy. I only am here to inform and educate. If you enjoyed this, please share with the next person as they may learn something. Listen twice and learn twice as much, Merry Christmas everyone talk to you guys Monday.
