I have explained in my previous article that Bitcoin is hyperdeflation and that growing adoption can only make the price rise exponentially. It’s not yet a bubble because there is an exponential growth of the market participants which gives a strong support to the price. Hoping to go back to 5,000 $ is ridiculous.
Coinbase is #1 on the Apple store. Progressing toward the top on the Android store. Coinmarketcap.com is becoming one of the most visited websites worldwide. Job ads about bitcoin and cryptocurrencies are exploding especially for growing support team of services struggling to scale fast enough. You have plenty of public information available to measure the growth and Wall Street spend a lot of money on this kind of data mining.
Starting to open short positions against such a powerful trend is dangerous and is not in the interest of anybody. Wall street has in fact a strong interest to go long early and exploit the excitation about bitcoin to stimulate adoption. Once the price start to levitate they will be able to have a stronger impact when selling their position and go short to buy back cheaper just after.
Bitcoin is one of the most free market in the world. It’s open to manipulation but that is uneasy when you don’t know how many people are participating and what are their plans. The only safe option is to follow the trend of adoption which is currently accelerating. That won’t last for ever but this kind of strength is not stopping overnight.
Platforms are struggling to catch up to meet the demand, people have just started to put small amounts to feel the market and are cautious because of negative comments in newspapers. Many are frustrated and are watching closely to find an entry point. New countries are just starting to hear about it in mainstream media. Newspaper are doing a lot of free advertisement by talking about the price all the time. Very few banking application have integrated cryptocurrencies to make access easy, fast and cheap. Revolut just did it this week and it is so successful that customer support is struggling that other will speed up to follow.
It really feels like it is just starting. Of course it’s hard to accept not having made ridiculous gain before but at that time bitcoin was a risky bet and that is why it has been heavily rewarded but if you believe in mass adoption there is room for crazy gains. Systemic actors are not in the game yet and for once you can make money on their back.
Is it too good to be true ? Well there are always unexpected risk and you must always stay diversified but the more it goes the more it becomes difficult to imagine a scenario where the game is over. I have lost faith in bitcoin’s imminent death long ago. The thing is becoming unstoppable and even if it’s volatile it doesn’t prevent me from sleeping because people I know in the real world are mostly jealous when they hear about it. They call this a giant ponzi but while it keeps going up they start to open their mind and start to ask themselves interesting question and hard fight start in the brain to slow down bitcoin contamination.
