This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. An inside joke in the Bitcoin community is that crypto time passes far more quickly than time in the “real world.” 6 months or a year can feel like an eternity, likely resulting from the rapid pace of development in the crypto space. In the brief 13 years that Bitcoin has existed, distinct eras have emerged with their own stories of parabolic price increases and ever-evolving narratives. A major contributor in distinguishing these stages is the programmed halving encoded into the Bitcoin block reward and its repeated catalyzation of a subsequent bull run. By understanding the past stages of Bitcoin, investors have a better shot at predicting the future. Below is a brief history of Bitcoin. A Tainted PastThe earliest days of Bitcoin were an exodus of coins leaving the hands of Satoshi and finding homes in the wallets of cypherpunks and cryptographic experts. Also, at this time, early contributors to the code stockpiled their own coins, creating some of the massive whales that we see in the market today. Not much happened from 2009-2011, until the explosion of the Silk Road. Bitcoin was the currency of choice for the underground platform, allowing users primarily to buy drugs. This was the first real use case for the currency, one that has tainted its reputation to this day but largely been wiped clean with passing time. The demand for Bitcoin, driven by a first real use case, shot the value up to $31 per coin. This was an astronomical rise considering the coin initially had a value of $0. In the very beginning, the minimal network and low interest meant people were giving away coins in the thousands, just to spread the supply of their thought experiment. There was even a Bitcoin faucet website in the early days that rewarded users 5 Bitcoin for solving one captcha. Bitcoin’s role in the Silk Road proved Bitcoin could be used as a currency and infused libertarian philosophies into the early narratives. Early AdoptersSilk Road was shut down in 2013, the same year that the first halving occurred. This marks the second stage of Bitcoin, which can be defined as adoption from the early Silicon Valley crowd. The Winklevoss twins learned about Bitcoin back in 2013 and began to connect with other movers and shakers like Charlie Shrem, Erik Voorhees, Chamath Palihapitiya, Roger Ver, Vitalik Buterin, and more. These men were the early investors in Bitcoin, facilitating its transition from an underground drug currency to an emerging asset on the forefront of a new financial system. It was at the top of this cycle bubble that Bitcoin underwent some of its toughest tests. Mt. Gox was hacked, which was the platform that handled about 70% of the total Bitcoin transactions, causing a +50% drop in price, China cracked down on the currency, and the U.S announced the introduction of capital gains taxes for traders. Through this devastating bear market that hit over the next couple of years, Bitcoin built tremendous resiliency and began to attract retail for the first time.The Retail MovementBefore the retail bubble burst in late 2017 and early 2018, a war brewed in the Bitcoin community. Forking the blockchain became a hotly divisive conflict separating the community into different camps that remain divided today. With a growing user base, it rapidly became apparent that Bitcoin does not function akin to “cash” as the white paper described it. Accommodating the influx of retail meant forking the code into a scalable Bitcoin, one that the majority of the community to this day fundamentally disagrees with. As the war came to an end and Bitcoin underwent its first fork, the retail market was growing in full force, attracting speculators, traders, and investors around the world. This led up to an epic price pump to $20,000 on some exchanges. It was a combination of greed, misinformation, and late arrival that left primarily the retail market holding their bags for a devastating 2+ year bear market that we are now finally out of. Through this crypto winter, the largest breakthroughs in innovation occurred. DeFi began to pick up steam, exchanges popped up left and right, and overall accessibility to the markets drastically improved. Many retail bag holders held their bags so deep that they were practically living down the rabbit hole, growing the community over the terrible winter that took place until the market finally turned around.The Institutions Are ComingThis is the story of today. For years people have talked of a day that institutional adoption would arrive. Historians will probably look back at MicroStrategy being the company that drew the line in the sand to carry us into the 4th era of Bitcoin. A no-name software company took the largest leap of faith ever recorded in the crypto community, with a $250M Bitcoin purchase to add to their balance sheet. Michael Saylor, the CEO of MicroStrategy, continued to buy more, becoming a thought leader and advocate for the space, paving the way for other companies to follow suit. Since his purchase, Square, Tesla, MassMutual and others have joined the movement, adding Bitcoin to their balance sheets. Simultaneously, PayPal, Venmo, and MasterCard are all heavily invested in mainstream adoption. This is still the beginning, but we will likely see more than just a handful of large companies jumping on board. Following suit could be a do or die decision. Beyond the companies of the world lie the governments of the world, Bitcoin’s final boss to prove itself as the 21st-century store of value.Government AdoptionThis story is largely unwritten but is beginning, as El Salvador has already made Bitcoin legal tender. It seems inevitable that either. more governments add Bitcoin to their reserves or the currency fails. Stopping the trajectory of Bitcoin in the middle of the journey makes less sense than either achieving nation-state adoption or becoming a worthless digital asset. This era lies on the horizon for Bitcoin, but seems like the inevitable next step before Bitcoin swallows the world financial system.In This Issue:Where Is Bitcoin Today?Bitcoin Thoughts And AnalysisAltcoin ChartsStop Trading After Three Consecutive Wins Or LossesWormhole Hacked For $320MBipartisan Bill Supports Crypto TransactionsStrips FinanceMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #429 - Where Is Bitcoin Today?
The Wolf Den #429 - Where Is Bitcoin Today?
The Wolf Den #429 - Where Is Bitcoin Today?
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. An inside joke in the Bitcoin community is that crypto time passes far more quickly than time in the “real world.” 6 months or a year can feel like an eternity, likely resulting from the rapid pace of development in the crypto space. In the brief 13 years that Bitcoin has existed, distinct eras have emerged with their own stories of parabolic price increases and ever-evolving narratives. A major contributor in distinguishing these stages is the programmed halving encoded into the Bitcoin block reward and its repeated catalyzation of a subsequent bull run. By understanding the past stages of Bitcoin, investors have a better shot at predicting the future. Below is a brief history of Bitcoin. A Tainted PastThe earliest days of Bitcoin were an exodus of coins leaving the hands of Satoshi and finding homes in the wallets of cypherpunks and cryptographic experts. Also, at this time, early contributors to the code stockpiled their own coins, creating some of the massive whales that we see in the market today. Not much happened from 2009-2011, until the explosion of the Silk Road. Bitcoin was the currency of choice for the underground platform, allowing users primarily to buy drugs. This was the first real use case for the currency, one that has tainted its reputation to this day but largely been wiped clean with passing time. The demand for Bitcoin, driven by a first real use case, shot the value up to $31 per coin. This was an astronomical rise considering the coin initially had a value of $0. In the very beginning, the minimal network and low interest meant people were giving away coins in the thousands, just to spread the supply of their thought experiment. There was even a Bitcoin faucet website in the early days that rewarded users 5 Bitcoin for solving one captcha. Bitcoin’s role in the Silk Road proved Bitcoin could be used as a currency and infused libertarian philosophies into the early narratives. Early AdoptersSilk Road was shut down in 2013, the same year that the first halving occurred. This marks the second stage of Bitcoin, which can be defined as adoption from the early Silicon Valley crowd. The Winklevoss twins learned about Bitcoin back in 2013 and began to connect with other movers and shakers like Charlie Shrem, Erik Voorhees, Chamath Palihapitiya, Roger Ver, Vitalik Buterin, and more. These men were the early investors in Bitcoin, facilitating its transition from an underground drug currency to an emerging asset on the forefront of a new financial system. It was at the top of this cycle bubble that Bitcoin underwent some of its toughest tests. Mt. Gox was hacked, which was the platform that handled about 70% of the total Bitcoin transactions, causing a +50% drop in price, China cracked down on the currency, and the U.S announced the introduction of capital gains taxes for traders. Through this devastating bear market that hit over the next couple of years, Bitcoin built tremendous resiliency and began to attract retail for the first time.The Retail MovementBefore the retail bubble burst in late 2017 and early 2018, a war brewed in the Bitcoin community. Forking the blockchain became a hotly divisive conflict separating the community into different camps that remain divided today. With a growing user base, it rapidly became apparent that Bitcoin does not function akin to “cash” as the white paper described it. Accommodating the influx of retail meant forking the code into a scalable Bitcoin, one that the majority of the community to this day fundamentally disagrees with. As the war came to an end and Bitcoin underwent its first fork, the retail market was growing in full force, attracting speculators, traders, and investors around the world. This led up to an epic price pump to $20,000 on some exchanges. It was a combination of greed, misinformation, and late arrival that left primarily the retail market holding their bags for a devastating 2+ year bear market that we are now finally out of. Through this crypto winter, the largest breakthroughs in innovation occurred. DeFi began to pick up steam, exchanges popped up left and right, and overall accessibility to the markets drastically improved. Many retail bag holders held their bags so deep that they were practically living down the rabbit hole, growing the community over the terrible winter that took place until the market finally turned around.The Institutions Are ComingThis is the story of today. For years people have talked of a day that institutional adoption would arrive. Historians will probably look back at MicroStrategy being the company that drew the line in the sand to carry us into the 4th era of Bitcoin. A no-name software company took the largest leap of faith ever recorded in the crypto community, with a $250M Bitcoin purchase to add to their balance sheet. Michael Saylor, the CEO of MicroStrategy, continued to buy more, becoming a thought leader and advocate for the space, paving the way for other companies to follow suit. Since his purchase, Square, Tesla, MassMutual and others have joined the movement, adding Bitcoin to their balance sheets. Simultaneously, PayPal, Venmo, and MasterCard are all heavily invested in mainstream adoption. This is still the beginning, but we will likely see more than just a handful of large companies jumping on board. Following suit could be a do or die decision. Beyond the companies of the world lie the governments of the world, Bitcoin’s final boss to prove itself as the 21st-century store of value.Government AdoptionThis story is largely unwritten but is beginning, as El Salvador has already made Bitcoin legal tender. It seems inevitable that either. more governments add Bitcoin to their reserves or the currency fails. Stopping the trajectory of Bitcoin in the middle of the journey makes less sense than either achieving nation-state adoption or becoming a worthless digital asset. This era lies on the horizon for Bitcoin, but seems like the inevitable next step before Bitcoin swallows the world financial system.In This Issue:Where Is Bitcoin Today?Bitcoin Thoughts And AnalysisAltcoin ChartsStop Trading After Three Consecutive Wins Or LossesWormhole Hacked For $320MBipartisan Bill Supports Crypto TransactionsStrips FinanceMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO