Caught on Chain

I was reading a funny article that Bitcoin "plunged" downward because Warren Buffett said it was worthless and yes, it is easy from the inside looking out at these old men to say, "They just don't get it" - which they likely don't. But, what they also don't seem to get is that how so many of these "institutional" investors (being how old they are) got rich, has also been through investments that have fucked our society, environment and economy.

But you know, all the electricity Bitcoin uses...

What is interesting in these articles however, is that they seem to fail to see what is causing the dip, because if someone like Buffett says something negative, speculators are going to speculate - meaning that they are going to expect the market to dip, so will play their part in ensuring it does. They aren't getting out though, they are getting deeper in at a lower price, cost averaging their position downward.

Oh and the slump in price they reported yesterday, well... it is back to where it was already, so does this mean that what Buffett says actually has very little weight to investors now? They speculate for a bit and then decide he was wrong?

Just remember,

This is all to create FUD

What is news in crypto however, is that France has granted Binance regulatory approval, which makes them a registered digital asset service provider, so that now it can offer trading and custody services for cryptos.

May the 4th be with you

As the largest exchange, that is a pretty big move and considering that crypto is fringe and Bitcoin has no value, they are moving more than 65 billion dollars worth in volume daily, between spot and derivative trading. That is one exchange and the governments are starting to realize - shit, we gotta have a piece of this.

Regulation is going to come with a lot of rules that people aren't going to like, but if mass adoption is the eventual goal, it is going to be necessary to get enough people aboard, learning and benefiting, before realizing there are endless possibilities of how to generate and define value.

For the average person to have a chance in the current economic climate to build wealth through investing, they are going to have to break away from the mindset of the old guard, because following that mindset is only going to make those early investors, richer. Essentially, they are shilling what they have already invested into, because that is what makes them money and every time someone listens to them, they make a little more, while the new investor is lucky to break even once all things are considered, and what needs to be considered is actually the conditions that these types of investors have created over the last 60 years.

The other thing to remember with someone like Buffet is, he is worth 100 billion plus dollars and is 91 years of age - he really doesn't need to chase every new investment opportunity, or give a shit what he says about anything at all anymore. He can say what he wants and be content, whilst still invested and knowing that he is going to keep making money anyway.

New investors have to start waking up to the FUD and diving into some risk, otherwise they are going to find themselves holding a lot of worthless crap that no one wants, because like it or not - the world is always changing and while the Boomer generation can prop this mess up for a while, it will implode soon enough.

Rough times all round?

Yeah, all the various economies are connected these days, but it is going to be interesting to see how crypto reacts to these rate rises the Fed is bringing in, where they raised it by 0.5% - the largest single rise in over twenty years. However, what you might have noticed is that the rate rises in the mid-teens also led into the 2017 run in crypto, which is what seems to be keeping people bullish, even if the timeframe isn't to their liking..

Another two years? FUCK!!!

But, while some are calling for a massive capitulation in price, MicroStrategy is saying that they would buy more to extend their position to ensure that BTC doesn't fall below 21K. At 21K, would you be buying Bitcoin?

I would be.

But, how much can I buy?

And this is going to be the very interesting question on Bitcoin going forward, as now there are far more holders than there were earlier and while many might sell a little, few will sell the lot, meaning that the liquidity on the market is going to get very thin fast. The further it drops, the more demand it will get from all those bulls who took some gains at the top and hold stables. Just in the top 10, there is 150 billion in stables across Tether, USDC and Terra, and then another 30 billion in the top 20 with BUSD and DAI. For anyone counting, that is 10% of the entire market cap of crypto and over 20% of the entire cap of Bitcoin.

How much of that would take a bite of 25K Bitcoin?

You think you will be getting much at that price?

You aren't the only one.

Because more people are being pulled into crypto and once in, very few leave, the floor is going to keep raising up and it will become self-perpetuating, where each fall will lead to greater gains and those gains will be used as support for the next fall. This cycles more people in as holders too, which means that each round they buy a little higher than the last and, they are not willing to sell at a loss, or at least, not all of what they have bought.

And, it isn't just going to be Bitcoin that is going to get attention, because as more people come in, they are going to start demanding goods and services that cater for holders. They are going to want to use it. Buying, earning and holding crypto now is like buying oil reserves, before the combustion engine was invented.

But don't listen to me - I am not a billionaire.

Taraz
[ Gen1: Hive ]