Bitcoin Price Buoyancy

Bitcoin Price Buoyancy – Don’t Bet Against Bitcoin

Bitcoin price fluctuations over the past week only go to show that Bitcoin price buoyancy over time is real.  Anybody who watched the latest 60 Minutes heard (or reheard – this story has become as historical as it has notorious) learned of the sad tale of Laszlo Hanyecz who paid 10,000 Bitcoin for some Papa John pizza.

When he bought that pizza almost nine years ago to the day — on May 19, 2000 – he ended up paying $800 million for that pizza at today’s current market price for a single Bitcoin. Repeat this until it sinks in; Bitcoin Price Buoyancy – Don’t Bet Against Bitcoin.

Looking at this sad story as a cautionary tale HODL takes on a new, deeper meaning.

As to current Bitcoin Price Buoyancy let’s look at what happened at the end of last week; Bitcoin rocketed up to nearly $8,000 USD then plunged by nearly $1,000 to roughly $7,000 in the blink of an eye.  And then it rebounded back to the $8,000 level within a few hours.  Buoyant indeed!

Bitcoin Price Buoyancy

The most feasible explanation for the sudden drop of Bitcoin late last week is best explained here. As usual, Bitcoin recovered.  And quickly.  Some say that Bitcoin is poised to return to the $18,000-$20,000 in very short order.  We’re optimistic yet skeptical.  Nobody can truly know what Bitcoin will do – or why – in the short term.  Studying all of the charts ever generate on Bitcoin won’t help.  Nor will predictions of future financial markets or indeed even analyzing the current status of any financial market anywhere in the world.

Nine years on the only thing certain is that Bitcoin price buoyancy is real.  There’s years of history behind this. In the long term we see Bitcoin as going nowhere except up.  Who can say when or how is a mystery to even the smartest of talking heads.

 

Cryptocurrency Bubble History

Cryptocurrency Bubble History – What the DotCom Bubble Can Teach Us

The explosion of the DotCom era and the subsequent plunge of almost EVERY Internet stock has many parallels to what I consider cryptocurrency bubble history. In the late 1990s, companies were raising millions of dollars in IPOs.  The trick seemed to be just have “.com” in your company name and/or logo.   ICOs up until recently had a very similar draw and legions of Lambo-seeking investors went crazy pouring every dollar they could into what seemed to be very lucrative cryptocoins.  There are so many similarities between the DotCom Bubble and current cryptocurrency bubble history, it would be a very good idea to get warmed up on the DotCom Bubble.

While lots and lots and lots of people lost, collectively, BILLIONS of dollars during the DotCom Bubble, it needs to be said that the Internet we know and love today was born out of the ashes of the DotCom Bubble.  History seems to be repeating itself with cryptocurrency bubble history.

Bitcoin is staging a slow but steady price comeback.  Bitcoin mining equipment is starting to sell again.  Just today the Wall Street Journal reported today Facebook is positioning itself into launching its own cryptocoin designed to be used all over the Internet and tightly integrated into the Facebook ecosystem.

CoinDesk seems to have known all along there would be a crypto comeback; they continued to roll out new services, expanded trading and grew the company while the cryptocurrency markets corrected.  cryptocurrency bubble history The summary of  cryptocurrency bubble history comes down to just two words; market corrections.

As with the DotCom bubble, investors started paying very close attention to all of those Internet companies and asking some pointed questions; is this company serious? Do they have a realistic chance of pulling off what they set to do? What’s my time horizon for ROI? The next wave of Internet companies formed the foundation of the Internet we use today after FOMO fever drove so many people not only broke but into the poor house.

Parallels again; ICOs are virtually extinct, replaced by STOs and DSOs which have a reasonable amount of risk NOT the ludicrous risk ICOs had with whitepapers so worthless through fakery as to not even be useful as toilet paper.

For several months CryptoCapers.com decided to sit on the sidelines and just wait.  We knew there was going to be a slow and steady market rebound. Up until just recently there was nothing much to write about. The Bitcoin price was basically stuck, other coins were cratering and new offerings were few and far between.

 

Bitcoin in Freefall

Bitcoin in Freefall- Down over 60% in 2018 and there’s no bottom in sight.

I woke up today to a nightmare; Bitcoin dropped below $6,000 overnight and is staying there.  Bitcoin in freefall was something Jack Lee didn’t predict; he predicted Bitcoin at about $25,000 as of July.  While Bitcoin price history has proven his prediction, even now, isn’t impossible but it seems very improbable.  The usual talking heads are offering theory after theory as to why the price of Bitcoin continues to plunge but there’s no way to know who is right or if anyone is right.  Bitcoin in freefall is all we know.

Bitcoin in freefall has led me to shutdown my Bitcoin miners.  I am running Avalon 741s which, given today’s Bitcoin market climate, makes mining unprofitable.  In fact, I would lose money on a daily basis.  I wish I was running some Avalon 841s because they would make Bitcoin mining profitable – even at today’s prices. Speaking of which, Bitcoin in freefall has led to a plunge in Bitcoin mining hardware prices too.  Bitmain’s flagship S9 Bitcoin miner was never available for lower prices and, heck, totally available.  Ditto Canaan’s Avalon 841. Equally noteworthy is that ASIC Bitcoin miners are AVAILABLE.  Last year you had to stay up late – perhaps all night – and sit at a supplier’s website on the CHANCE you can buy Bitcoin miners in the few minutes you had before they sold out.  See the silver lining in this? Bitcoin in freefall has made it possible for aspiring Bitcoin miners to start their operation for thousands of dollars less — PER UNIT.

bitcoin in freefall

As with every other Bitcoin price trend – up or down – Bitcoin in freefall brings a wide range of impossible-to-prove theories such as the recent hacks, Tether price manipulation, etc. etc. In other words, nothing new.  To put the current price of Bitcoin in perspective; it’s still 300% higher than it was this time last year.  Here’s some more positive perspective; everyone remains bullish on Bitcoin in the long term.

Bitcoin’s Up & ICOs are Out

Bitcoin’s Up & ICOs are Out – The Stunning News Revealed on The Fox Business Network

Liz Claman – affectionately dubbed The Red Fox for her brains and her beauty – reported on Bitcoin’s Up & ICOs are Out during her broadcast yesterday.  With special guest Christine Lagarde, IMF Managing Director, we learned three things:

  • The international community at large is likely not going to regulate Bitcoin to any great extent
  • ICOs in America have all but disappeared due to close SEC scrutiny, forcing ICOs to launch in other countries
  • Bitcoin is being buoyed by all this good news and firmly re-establishing itself as THE cryptocoin that matters more than any other.

With the exit of ICOs out of America it naturally follows that Bitcoin breaks through to highs not seen in weeks.  The simple answer is that Bitcoin’s Up & ICOs are Out.  With the SEC’s launch of multiple probes last month with a clear statement they will be watching closely, ICOs are heading overseas where there is less regulation and thus less resistance to launch.  The question that begs asking; what were all of these ICOs so afraid of by facing SEC oversight? A question every investor should be asking themselves; can I trust any overseas ICO? ICOs, now more than ever, are ripe for scams and confidence schemes perfectly positioned to rob investors with little to no chance of legal action of any kind.

That’s just one more reason why Bitcoin’s Up & ICOs are Out; Bitcoin is the safest cryptocoin investment out there.  Celebrating its first back-to-back weekly gains in 2018, Bitcoin bulls have good reason to celebrate.

Bitcoin Price Reality

Bitcoin Price Reality – Separating Fact from Myth

The recent plunge in Bitcoin – and almost every other cryptocoin out there – is attributed to all of the recent bad news.  Bitcoin price reality needs to set in.  Let’s tear apart all of the recent factors the “experts” are attributing to the Bitcoin price plunge….

Bitcoin Price Reality #1 – The Google Cryptocoin Ban is a ZERO factor to Bitcoin prices.  The same holds true for the other big coins out there like Ethereum, Litecoin and some of the smaller – but established coins – like Monero, Ripple, etc. Nobody ever saw a Google ad – or a Facebook ad for that matter – for Bitcoin itself.  Ditto Ethereum, TRON and who knows how many other coins.  The Google ban will make life difficult for ICOs and emerging cryptoexchanges and it basically puts cryptocoin consultants, experts and gurus out of business.  HOWEVER, any advertising ban cannot even put a dent in Bitcoin itself.  To think otherwise is the most powerful example of FUD driving idiots and the afraid to sell coins because they just don’t know any better.

Bitcoin Price Reality #2 – The SEC is going to crackdown on cryptocoin.  Yes, perhaps.  But so what? That’s not going to have the slightest ACTUAL impact on Bitcoin (and again, the other big coins, etc.) Because Bitcon is decentralized there is nobody for a government agency to go after.  No single entity raises any actual money with Bitcoin.  This is why Coinbase is so slow to list any ICOs. This quote from Michael Lempres, a senior corporate officer of Coinbase explains why. “We do not support any [ICO] at the current time because we are not sure what the regulatory [treatment] is… We are waiting for the dust to settle between the CFTC and SEC before we electively engage on supporting ICOs.” The CEO of Coinbase said much the same thing during a recent CNBC interview when it comes to listing new coins; they are operating Coinbase with a conservative abundance of caution.  Bitcoin Price Reality: If Coinbase were to be subject to higher, much more stringent regulations tomorrow it wouldn’t matter at all. A typical day at a Coinbase office would go on as usual.

bitcoin price reality

Bitcoin Price Reality #3 – All of the government regulation on earth won’t and can’t stop Bitcoin.  NBC News published a very dark article on their website about the future of cryptocurrency.  All together the reporting wasn;t bad but they got one thing very, very wrong — they grouped Bitcoin together in the same category as all other cryptocurrencies.  I think what spooked the Bitcoin world markets was what the IMF (International Monetary Fund) said in calling for GLOBAL regulation of cryptocurrency.  It’s been pointed out time and time again that Bitcoin, in and of itself, is immune from and impervious to any regulation of any kind. Bitcoin is the king of cryptocoin and is in a class by itself.

Bitcoin Prices & Bitcoin Miners

Bitcoin Prices & Bitcoin Miners – Miners Care Very Little About Bitcoin Pricing

In June 2017, when Bitcoin prices were hovering around the $2200 mark, Bitmain very quietly formed a  corporation in Washington State.  The objective? Expand Bitcoin mining operations beyond China.  They knew then as we all now know that Bitcoin mining is one of the most profitable business ventures on the planet. That’s why Bitcoin prices & Bitcoin miners have a very casual relationship.

A Bitcoin miner cares about Bitcoin prices only to the degree that the higher the price, the higher the profit.  As a Bitcoin miner since last summer myself I know this to be true.  When Bitcoin plunged to $6,000 recently my modest Bitcoin operation still generated daily profits.  Of course profit was higher in December when the Bitcoin price tickled the $20,000 mark but money was made before, during and after.  That’s why Bitcoin Prices and Bitcoin Miners make for an easy affinity.

When Bitmain expanded their operations beyond China to the United States, Iceland, Switzerland with Canada their next likely location, they did so when Bitcoin was a fraction of the price it is right now.  While cryptocoin investors panic over the current Bitcoin price of $8832, Bitmain was very quietly expanding their Bitcoin mining operations into a multinational venture. Bitmain doesn’t care about the current Bitcoin price; they clearly see the bigger picture of the relationship between Bitcoin prices & Bitcoin miners.

bitcoin prices & bitcoin miners

“Bitcoin investors will be the richest people on earth. Anyone who understands Bitcoin cannot deny this. But what does that say about Bitcoin miners? We occupy the top rung of profitability. Soon, mining will be immorally profitable.” – John McAfee

John McAfee is considered by some to be a scoundrel, by others a business genius and by others still a mathematical prodigy.  Having created the world’s first antivirus product which blossomed into a business worth many millions, John McAfee is definitely NOT a fool.  John McAfee worked for NASA (so yes, he IS as smart as a rocket scientist), he holds a degree in mathematics and was later awarded a Doctor of Science degree in recognition of his academic contributions.

So when John McAfee, suspected scoundrel, recognized scientist and mathematical genius says that Bitcoin mining will be immorally profitable you can take that to the bank.  Before I made my first ASIC Bitcoin mining purchase I relied on my accounting degree to help me run the numbers and, yes, they work. They not only work, they are beautiful. That’s why Bitcoin Prices & Bitcoin Miners will be involved in a very long love affair of technology and wealth.  Bitmain was clearly on to something years ago and they are obviously doubling down year after year with Bitcoin mining operations spanning three continents.  Oh here’s a closing thought; Bitmain co-founder Jihan Wu and John McAfee are friends…

Bitcoin Price Positioned to Explode

Bitcoin Price Positioned to Explode – Bitcoin Dropped Yesterday on Bad News That’s Really Good News.

SEC cryptocurrency exchange scrutiny. The Japanese Bitcoin Whale selling off $400 million in Bitcoin.  A feared Binance hack.  Bad news for Bitcoin, right? WRONG.  All this news is good news; Bitcoin price positioned to explode.  I’ve noticed that a lot of cryptocoin investors look at a Bitcoin news headline and assume they know the whole story…. they usually don’t.  Or they read the whole article but miss important details and end up with a flawed conclusion.  Let’s go over all of the good news that proves the Bitcoin Price positioned to explode.

cryptocoin investing

SEC scrutiny of cryptocurrency exchanges. This Wall Street Journal article summarizes it best; if you’re doing nothing wrong then you have nothing to worry about. Case in point, this quote directly from the article: “...Coinbase Inc.’s GDAX platform, limit their order books to bitcoin and virtual currencies that aren’t issued by any single company and have been deemed commodities by the government. Those platforms are effectively free from SEC oversight because they don’t offer investments it regulates.”  It’s the ICOs and the exchanges trading shitcoins that have something to worry about,  Proof positive: this “bad new” is actually good news for Bitcoin.  Like I said, Bitcoin Price Positioned to Explode.  Or maybe EXPLODE.

Japanese Bitcoin Whale. Too many people assumed Nobuaki Kobayashi sold $400 million in Bitcoin yesterday.  But he didn’t.  If you read any given news article carefully you will learn the sell off started in September of 2017…. as Bitcoin marched higher and higher to finally hit just around $20,000.  Mr. Kobayashi is the trustee overseeing the Mt. Gox bankruptcy.  He’s got $1.9 billion more of Bitcoin to sell and he’s made it clear he will sell it strategically at the highest price possible.  Conclusion: Bitcoin Price Positioned to Explode.

The Binance Hack. People were understandably concerned but Binance handled the attempted hack masterfully.  Nobody lost any money through the unpredictable yet effective response by Binance.  Bloomberg reported the event beautifully.  The most important fact of this failed attempt is what the hackers tried to get away with; Bitcoin.  The king of cryptocurrency.  Score one more point for Bitcoin Price Positioned to EXPLODE.

So now that we stomped on and stamped out the latest FUD let’s look forward to Bitcoin’s brighter-than-ever future.

 

Bitcoin Whale Spotted

Bitcoin Whale Spotted – Anonymous trader buys $400 million in bitcoin

We reported Bitcoin whales behind the recent rally of Bitcoin going over $10,000 a couple of days ago.  One Bitcoin whale spotted got the attention of everybody; he gulped up some 41,000 Bitcoin totaling $400 million over the span of three days.  Looking at the seven day Bitcoin price chart he already made a very handsome profit thanks to this latest Bitcoin rally.

Who is the Bitcoin whale spotted?

bitcoin whale spotted

Nobody knows who or she may be but everybody knows this is one smart Bitcoin investor.  They bought near the latest bottom and already made a ton of money on gains.  Other investors see the $6,000 Bitcoin price earlier this month as the bottom leaving nowhere to go but up.  And that is holding true; Bitcoin has nearly doubled in value in the past two weeks and is up 35% compared to this same time last week.

Apparently, the anonymous cryptocurrency trader who made what may very well be the largest single investment in Bitcoin ever and has an optimistic outlook.  And with good reason.  Bitcoin is on the march back up and heading towards an all time high.  Most experts agree that Bitcoin will rocket up to the $20,000 level sometime during summer ending 2018 at $40,000 or even higher.

Buying on a Bitcoin dip is a proven investment strategy and the Bitcoin whale spotted is not alone.  With jitters over potential US regulatory action out of the way coupled with similar relief out of Asia, Bitcoin bad news is in the rear view mirror.  Anybody who bough Bitcoin at the $6,000 or $7,000 level earlier this month has already seen an impressive gain in value.

The purchase was made between February 9 and February 12 via Bitcoin address address 3Cbq7aT1tY8kMxWLbitaG7yT6bPbKChq64. That account has seen its bitcoin balance balloon from 55,000 BTC up to more than 96,000 BTC

 

Bitcoin Back Over 10K

Bitcoin Back Over 10K- Bitcoin Shrugs Off Bad News,  is Climbing Steadily Higher

With Bitcoin back over 10K, Bitcoin is proving the critics and the cynics wrong yet again thanks to crossing back over the $10,000 line and staying there.  Bitcoin has been on a slow and steady rally the past several days. While still halfway from it’s high of nearly $20,000 just two months ago, Bitcoin is steadily climbing from a February low of under $6,000.

With Bitcoin back over 10K most other cryptocoins, as usual, follow suit.  Crypto currency investors are breathing a big sight of relief at seeing their portfolios look green for the past few days.

While the sustained rally that brought Bitcoin back over 10K is a global event involving hundreds of thousands of people, some Bitcoin whales have been spotted making VERY large buys today to the tune of over 1,000 BTC.  That’ll drive prices higher all by itself.

Then there’s the drought of Bitcoin bad news with good news filling the void.  We recently reported on Coinbase Commerce, a gamechanger for Bitcoin markets as well as the other big coins. Then there are positive signs in South Korea that they will more than likely pursue a licensing system for their cryptocoin exchanges to crack down on illicit activities than an out-and-out ban.  Earlier this week the CFTC in the United States convened meetings signalling no intention to regulate cryptocoin beyond the myriad of laws already on the books as well as a slew of enforcement methods.

With Bitcoin back over 10K it looks like the FUD has faded and the FOMO has returned.  Experts like the redoubtable Tom Lee, among others, predicts new all-time highs for Bitcoin by July.  I don’t think it’ll take that long.  I think this rally, while starting out slow in the past few days, while gain steam and pickup momentum leading to fresh highs sooner rather than later.

Bitcoin Bounces Back

Bitcoin Bounces Back – Bitcoin plunges. Cryptocoin investors panic. Then Bitcoin Rebounds. It’s like Groundhog Day.

Bitcoin bounces back about this same time every.  Many people have pointed out this trend but nobody made it as simple to understand as John McAfee.  If you study the charts below you will see that the price of BTC plunges dramatically only to shoot up to fresh new highs.  With history as our guide, we should be very excited in looking forward to what’s going to happen next.

What’s going to happen next? Bitcoin bounces back.  In fact, the more dramatic the price drop the higher the price goes on the rebound.  While no one can be sure why this Groundhog Day version of Bitcoin happens this time of year ever year, some point to the Chinese New Year.  Maybe so.  Possibly not.  SOMETHING is behind this annual readjustment on Bitcoin.

Bitcoin Bounces Back

Looking at the bigger picture, the Dow dropped as much as 1600 points today – it’s single biggest drop in stock market history – before recovering a bit to close down 1175 points.  The S&P 500 and Nasdaq followed suit.  In any financial market it happens.  What goes up must come down — only to go up higher than ever eventually.  This isn’t a “Bitcoin thing” and I don’t see the latest round of bad news out of China as the culprit either.  The Bitcoin market is going through a healthy correction which will weed out the weak newcomers (“noobs”) to Bitcoin investing, the fly-by-night Bitcoin scammers and the new-to-market Bitcoin miners who eventually learn that cloud mining is a very bad idea.

Bitcoin bounces back already; the price is up nearly $700 from its lows this morning as I write this.  If you’re a Bitcoin investor just HODL and buy more if you can and take advantage of these low prices.  If Bitcoin’s 2018 performance is anything like 2017, your 2018 Bitcoin purchases now will make you rich later.

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