When the dragon no longer sleeps
“The world is waiting, anticipating…” This is a line from a book called “WINK & Grow Rich” by my friend Roger Hamilton. In the book, the line is delivered several times to the young hero of the allegorical story. In the book, Richard wanders around seeking external wealth, whilst the world is waiting for him to discover that his internal wealth is the key to manifesting his wealth on the outside.
Just as the world was waiting and anticipating Richard’s internal awakening, it seems that the world has been waiting a long time for crypto markets to wake up.
It seems that it has been a long time since bitcoin had its last halvening earlier this year (or perhaps time just drags more slowly during lockdowns and pandemics?) and residents of cryptopia have been waiting for BTC to show signs of resurgence. When bitcoin moves, it tends to trigger movements in other altcoins as well, just as an awakening dragon would cause all the smaller animals to scurry.
Can history repeat again and again?
Bitcoin was born in 2009 and had its first halving event in late 2012. Within a few months of the halvening, BTC prices jumped from around $4 to over $1100.
There was a long retraction after the bull run, and at the time of its second halvening in July 2016, BTC prices were (only) $650. It would have been heart-breaking to have bought at $1100 and watch the price go down to $650, but if you had held beyond the halvening…
Many people would know that around 18 months after the 2016 halvening, that BTC surged to over $19 000 by the end of 2017. This was when bitcoin gained huge media attention and more mainstream adoption. Altcoins followed the rise and it was magic or mayhem, depending on whether you chose the best altcoins or the worst scams.
Since the whirlwind days of late 2017 we have had a long retraction again, with BTC prices mostly staying over $6000 (with a quick dip down to $3000 when Covid19 hit gold, stocks and crypto simultaneously). We are only a few months after the third BTC halving in August 2020, and the BTC price seems to be finding a lot of stability over US$10 000. Forecasters who measure the dramatic growth after the past two halvenings already have their bets on whether bitcoin will exceed $20k, $50k or even $100k in the next few years.
It is not surprising to see that bitcoin’s recent awakening has seen some of the altcoins start to take off also.
Of interest also, is the number of wallets on the rise, as crypto becomes more mainstream. Back in 2017 when it seemed that cryptomania had gripped the entire world, the number of blockchain wallets grew from around 12 million to around 21 million. It was good growth but hardly earth-shattering.
Despite retracing prices from the peak, the number of wallets now exceeds 50 million (statista.com). That is a whole lot more people now HODL-ing and using cryptocurrency than ever before. Are they all hoping that history will repeat itself, and the post-halvening boom will happen again? And will more wallets come online?
Give a little, gain a lot
Obviously, it is nice when your bitcoin or other cryptocurrency suddenly takes off to new highs. Investors can feel like they have just won the lottery. But quick spikes can crash down just as quickly if there is no ongoing support or use-case scenario.
Bitcoin has long been likened to “digital gold” as it is a store of value, deliberately scarce and a good counter against inflation. Investors have also to be reminded that transactions are the bread and butter of bitcoin. It was created as an alternative to banking, and still offers great value when sending money to a third party.
In recent months, our office has sent various amounts of bitcoin to pay for goods and services. On transactions of $1 000 up to $10 000, transfer or mining fees were less than one dollar. This is a significant saving over using traditional transfers such as banks, Western Union or MoneyGram.
If you are fortunate enough to have been holding a few cryptos for a longer period, and have benefitted from price growth, then we encourage you to send a few transfers to friends and family. This is a generous way to invite your loved ones to join the crypto community, supports the miners, plus brings more mainstream adoption. It really is a win-win-win scenario.
More use, more demand, more price rises
Send some bitcoin. Share the love. See what flows back to you. When the number of blockchain wallet holders exceeds 100 million, this could be described as a truly monumental global movement. As crypto wallet adoption becomes exponential, pricing will likely do the same. It is simple supply and demand, even without factoring in the halvening events.
We have seen gold prices rise dramatically in the past few months, as the pandemic rages on, and governments print billions more in paper currency. Many people in the older generation who fear inflation are exiting fiat paper and stockpiling gold. Gold mining costs have not increased much at all, but the yellow metal is surging in price due to demand from more users.
If you are reading this, you are young and hip (at least on the inside). Accumulate gold and silver by all means, if you wish to do so, but also remember to share your love of crypto and send some to a friend. They may be confused at first, but they will love you in the end, and more users makes the network stronger and the price rise longer.
Keeping it simple
Aside from bitcoin enjoying some excellent growth recently, how is the BostonCoin portfolio looking?
As some older crypto projects have not panned out as predicted, we have sold off a few smaller investments this month and consolidated into better projects. This strategy has turned out well, with one investment up 115% and others as below.
NIM up 177%
XYO up 193%
LINK up 668%
CEL up 893%
If you would like some help to share your crypto with others, or setting up new wallets, please take a look at the support available on www.Cryllionaire.com and then get in touch with us via email or Facebook if you need more assistance. We are here to help you, our loyal puppy pack, and we are always happy to see more mainstream adoption.
If you cannot send crypto, send this newsletter to a friend to spark their interest. New investors (and those who introduce them) will receive their choice of bonus cryptocurrency or some cool BostonCoin products.
Stay paws-itive. See you next month
BOS NAV 31/07/2020
BostonCoin Price 38.0099