Three reasons the next bitcoin rally will be monumental

Mark Helfman
Dec 7, 2019 · 4 min read
Photo by Nghia Le on Unsplash

Bitcoin’s price crashed from $14,000 to $7,000 between July and November 2019.

This drop triggered panic and despair. A new wave of commentators claimed “bitcoin is dead / blockchain is useless” and some HODLers gave up.

Yet the price remains up 100 percent since the beginning of this year.

Many hope this most recent dip marked a short-term “correction” after a senselessly-parabolic run. A healthy move down, setting up an even more powerful rally that will send prices to the moon.

Nobody really knows, but if that rally it ever comes, it will mark the first time average people have easy and legal ways to get bitcoin.

They can buy it directly from a regulated exchange, use services like Bisq or LocalBitcoins, purchase bitcoin-backed financial products, get bitcoin rewards from Lolli or other providers, and stack sats with apps like Cash, MetalPay, or Crypterium.

On top of that, many countries have created or clarified laws around cryptocurrency — meaning it’s less risky to own and use crypto.

As a result, the next bitcoin boom will bring in a lot of people.

And a lot of money.

(If it ever comes.)

Image is cleaner

Bitconnect guy shilling a scam and John McAfee torching a $100 bill.
Bitconnect guy shilling a scam and John McAfee torching a $100 bill.
Bitconnect guy shilling a scam and John McAfee torching a $100 bill.

Since then, crypto has gotten much more professional and commercial.

Wall Street is now involved. CNBC covers it. Government regulators talk about it casually and openly.

Its biggest advocates now look like this:

Headshots of Anthony Pompliano, Andreas Antonopoulos, and Caitlin Long.
Headshots of Anthony Pompliano, Andreas Antonopoulos, and Caitlin Long.
Headshots of Anthony Pompliano, Andreas Antonopoulos, and Caitlin Long.

Conventional. Friendly. Normal.

Not scary.

On-ramps are better

Also, $22 trillion in U.S.-registered investment funds had no legal way to buy bitcoin on behalf of their clients. Murky rules and shady custodians kept them out of the markets.

Now, KYC takes 5 minutes and we have many legit, regulated exchanges, DEXs, trusts, mobile platforms, and services for people who want to move money into crypto.

Large investment funds have derivatives, trading desks, and financial instruments to “gain exposure” to bitcoin. Or, they can simply store bitcoin with a custodian for safekeeping.

Vested interests are prepped and ready

By the time boom came along, you didn’t have the many months of marketing, advertising, and “education” to get people thinking about crypto as a “normal” thing.

Now, thousands of stores have bitcoin ATMs. Bakkt and Starbucks plan to release a bitcoin-based payment app. You see crypto ads popping up everywhere. Altcoins and non-bitcoin blockchain projects have started gaining traction and users.

Fidelity launched digital assets platform and TD Ameritrade bought a stake in ErisX, a crypto exchange. Meanwhile, Bakkt (NYSE’s sister company), Circle Invest (Goldman Sachs subsidiary), and other deep-pocketed start-ups have set up shop in the cryptosphere.

Once bitcoin’s price goes up for a while, investors will get over their “disbelief” that a new bull run has started. FOMO will set in. Altcoins will pump.

At that point, do you think Wall Street will keep its crypto efforts secret?

Probably not.

So . . . wen moon?

Yes.

“It’s different now” is a very powerful message.

Especially when it’s delivered by Wall Street to the millions of people who already own some sort of traditional financial asset.

Wall Street’s entry into crypto changes everything but nobody really ever talks about it. Amazon has one very short ebook, Bitcoin or Bust: Wall Street’s Entry Into Cryptocurrency. If you have a chance to read it, I’d love to hear your thoughts.

Meanwhile, let’s see if we can get that bull run everybody’s hoping for. No bull run, no masses trying to buy bitcoin.

Relax and enjoy the ride!

Mark Helfman is a top writer on for cryptocurrency, finance, and bitcoin topics. His book, Consensusland, explores the social, cultural, and business challenges of a fictional country that runs on cryptocurrency. In a past life, he worked for U.S. House Speaker Nancy Pelosi.

Originally published at https://markhelfman.com on December 7, 2019.

The Startup

Get smarter at building your thing. Join The Startup’s +799K followers.

Mark Helfman

Written by

Sharing insights about bitcoin, altcoins, blockchain so you can make the most of the cryptocurrency bull market. Not JUST about money. Bio: https://rb.gy/ebxeeu

The Startup

Get smarter at building your thing. Follow to join The Startup’s +8 million monthly readers & +799K followers.

Mark Helfman

Written by

Sharing insights about bitcoin, altcoins, blockchain so you can make the most of the cryptocurrency bull market. Not JUST about money. Bio: https://rb.gy/ebxeeu

The Startup

Get smarter at building your thing. Follow to join The Startup’s +8 million monthly readers & +799K followers.

Medium is an open platform where 170 million readers come to find insightful and dynamic thinking. Here, expert and undiscovered voices alike dive into the heart of any topic and bring new ideas to the surface. Learn more

Follow the writers, publications, and topics that matter to you, and you’ll see them on your homepage and in your inbox. Explore

If you have a story to tell, knowledge to share, or a perspective to offer — welcome home. It’s easy and free to post your thinking on any topic. Write on Medium

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store