The Crypto stock that’s better than GBTC

You have to love Crypto. Besides the real world Tom Clancy shit that is the backstory on Satoshi Nakomoto (to this day people hotly debate if Satoshi Nakomoto is Craig Wright, or was Hal Finney or Dave Kleiman. By the way, 2 of these 3 gentlemen are dead) you have characters like John McAfee of McAfee Antivirus and killing your neighbor in Belize notoriety making YouTube videos of himself snorting coke with hookers and guns whilst CEO of a publicly traded company with big Bitcoin investments. (scan to 1:12 mark where the good stuff starts)

John happens to have a company called MGTI which as far as I can tell is his pet project company. It has a project in the works for a privacy phone:

Introducing the world’s first smartphone featuring hard kill switches, empowering its users to take back control of their privacy. All phones feature a built-in privacy control center giving users full control of access and functions of their phone.

That’s interesting but will likely fail. Most people don’t care about privacy.

But THIS is where things get interesting. From the Company Info webpage:

Also as part of its corporate efforts in secure technologies, MGT is growing its capacity in mining Bitcoin. Currently at 5.0 PH/s, the Company’s facility in WA state produces about 80 Bitcoins per month, ranking it as one of the largest U.S. based Bitcoin miners. Further, MGT is in active discussions with financial partners to grow Bitcoin output materially.

McAfee gets it. He’s steering his company towards Bitcoin mining. Let’s say Bitcoin doubles or triples in price. Boom, his profit on the mining investment will follow. GBTC is a publicly traded tether to Bitcoin but it’s disconnected from reality. MGTI is the sleeper stock that has potential to explode as it is discovered by the masses and the profits begin to roll in.

MGTI was up 28% today.

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Yesterday I entertained Bitcoin Bears with forecasts of doom for Bitcoin and a correction to $1,400.

Today I am here to tell you that the correction is over! I hope you got your cheap Bitcoins at $2,200. Barring any further detours, Bitcoin has reset it’s course to $10,000.

For perspective, the move from $3,000 to ~$2,200 is a correction inside a MUCH bigger move. Look at what Bitcoin has done before:

A 30% correction doesn’t concern crypto veterans. Here is a link to the chart above you can click on for live update. Notice the price goes off the chart? Bitcoin has doubled in price since that chart was created. Bitcoin is repeating larger and larger Wyckoff cycles one after another and they are happening closer and closer to each other. By 2019 I predict we’ll have $1,000 INTRADAY moves in Bitcoin price.

In all seriousness, if Bitcoin does not retrace to $2,000 (the 38% fib on chart below) from the top at $3k that is extremely bullish.

Once in a generation an investment comes along like Cryptocurrencies. This week’s drama will be a blip on the chart later this year when we’re over $5k and possibly flirting with $10,000 Bitcoin.

And … Cryptocurrencies are highly volatile. Most of the current coins won’t survive. But to the winners will go the spoils, and the spoils of this currency war will be large indeed. Therefore Crypto should be part of everyone’s portfolio.

As with any investment, consider dollar cost averaging into a position over time. If you’re lucky you’ll get some sub $2k coins.

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Putting a target on anything is a fool’s game. Well, I’m your Huckleberry.

A daily chart of Bitcoin with a fib retracement of 61.8% is ~$1400. I’d say we’re 50/50 to see $1700 price by August 1st and we’ll overshoot it to touch $1400.

However, much like baseball, there’s no crying in Bitcoin.

You either believe Bitcoin is a game changer or you don’t. Buy hold or sell. Those are your choices.

Am I concerned? Sure. And yet I know Bitcoin has been here before many times. The global macro economic situation remains bullish for Bitcoin. Japan has made Bitcoin a currency. India is warming up to Bitcoin. Bitcoin is a GLOBAL phenomenon. There will be bumps in the road to world domination.

Bitcoin remains Bitcoin’s major enemy as we move towards August 1st and the New York Agreement. The New York Agreement is the literal fork in the road and, besides the parabolic price rise, a possible cause for a rocky Summer in cryptoland.

The Bitcoin bulls are like early bulls in any sector. Ridiculed and sometimes publicly humiliated. But in the end Bitcoin will prevail. Even if you aren’t a believer can you afford to sit out a game changing financial instrument with zero exposure in your portfolio?

Make your plans to dollar cost average in under $2,000. See you in 2018 at $10,000 or I’LL SEE YOU IN HELL.

These are your future masters of finance. Prepare accordingly.

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Dennis Rodman is headed to North Korea to set himself up for a Nobel Peace Prize by smokin’ sweet Ganja with Kim Jong Un. Sponsoring the whole event is PotCoin, a digital cryptocurrency created solely for buying and selling cannabis.

PotCoin (POT) is a decentralised, open-source cryptocurrency forked from Litecoin in January 2014. It was created with the goal of becoming the standard form of payment for the legalised marijuana industry. Technically, PotCoin is almost identical to Litecoin, with just a few differences: a shorter block generation time, quicker halving schedule, and a higher maximum number of coins. As a result of its name and nature, the cryptocurrency attracted a fair amount of attention in mainstream media and, unlike most cryptocurrencies, PotCoin was deemed sufficiently notable to keep a Wikipedia page.

PotCoin price is up 90% (and rising) since the news hit yesterday. Here is the PotCoin chart overnight since the story hit mainstream media.

Also from the Gizmodo article:

But even more bizarrely, Rodman has hinted that he’s setting up a backchannel for Donald Trump to speak with Kim Jong-un. And people are taking the possibility very seriously, considering that Dennis Rodman is the only mutual friend between the two world leaders. Seriously.

Seems surreal right? Well it’s also our best shot at bringing Kim Jong Un to the negotiating table and PotCoin just put themselves on the world stage. This is a masterstroke of PR genius by PotCoin with the added benefit of possibly opening the door to US and North Korea negotiations.

420 brah.

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I’ve been blogging about Bitcoin on iBC since August 2016 when Bitcoin was trading at $586 and have been involved for much longer. I bought my first Bitcoin at $13.

If you don’t know much about Bitcoin I recommend scrolling through my previous posts to get up to speed.

Since Bitcoin is hitting the news everywhere I’m going to commit to answering questions you may have in the comments.

And yes I know the weekly chart is parabolic. It’s a bubble. It’s going to correct. Bitcoin has done this before. It doesn’t concern me.

 

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Bitcoin just enjoyed a “selling climax”. Like most climaxes people are not thinking clearly post coitus.

We are repeating Wyckoff cycles over and over. I believe the technical term is “Bitcoin is fractal like a motherfucker”.

Link to live chart below where you can play forward the realtime data on tradingview.

 

And this chart is especially hilarious because the price goes off the chart, literally. Follow the link and press play.

That’s an example of an accumulation zone and markup. These zones are getting bigger and bigger. We’re going to enter into crazytown soon. More info in the video below.

 

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Bitcoin and the Cryptocurrency market are on fire. And it’s quite possible we haven’t seen anything yet.

Here’s a two year chart. Look at the trendline.

That trendline is the beginning of the trend noted below. We are moving from Innovators to Early Adopters.. Money is flowing in. Notice we will go vertical soon (late 2017 to 2018-ish) to fulfill on the chart below.

Here’s another chart from this excellent article about the different adoption rates of various technologies. Notice the adoption window is becoming shorter and shorter. If you put Bitcoin on this chart it would be just under the first horizontal line (penetration) and be vertical (adoption rate). By 2020 I expect we’ll be well into our Early Majority stage.

Here’s a great video of James D’Angelo talking about S curves and it’s comparison to Twitter, Google and Facebook. Bitcoin will crush those returns. Keep in mind, this video is at least two years old.

Here’s my take on Bitcoin and the S curve. Buckle up buttercup, it’s going to be a wild ride.

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Bitcoin will reach $10,000. But when?

As of today, in the year of our lord 2017, several parties are battling it out for control of Bitcoin.

1. Core Developers (the team that has current access to update Bitcoin code) has declined all requests for improvements to Bitcoin code. Result: Bitcoin has not evolved.
2. Bitcoin Unlimited, SegWit etc. Groups that insist Bitcoin change code to accommodate new capabilities ASAP or Bitcoin hard forks (hard fork means Bitcoin splits in two, similar to GOOG and GOOGL, except one version would eventually die).

The result is a stalemate and frustration. Some of the smartest people on the planet are hurling infantile insults at each other via Twitter. An example:

@MrHodl fuck your mother if you want fuck.

— Jihan Wu (@JihanWu) May 15, 2016

Fuck your mother if you want fuck. Indeed. T-shirts with this quote are now available online, naturally.

Things are not as they seem though. This battle isn’t about who can update Bitcoin software. It’s much bigger than that. This is about who will control the primary digital economic asset / store of value of the future.

Will the real Satoshi Nakomoto come forward and set right his wayward vision for ‘Peer to Peer Currency’? There are rumors…..

As if that’s not enough drama customers of Bitfinex, a major Bitcoin exchange, have been having problems withdrawing cash due to “banking issues”. As a result users have been buying Bitcoin at Bitfinex so they have access to withdrawing funds via Bitcoin to circumvent the “banking issues”. This buying pressure has caused a dislocation in price. Bitfinex price for Bitcoin has run as high as $100 higher than other exchanges. This dislocation has dragged Bitcoin price upwards across all exchanges. When the Bitfinex problems are resolved (I expect Bitfinex will implode) what will happen when that buying pressure disappears. Even more important, what happens when casual Bitcoiners see their investment fall 20%?

Even with those issues, Bitcoin continues to rise in price. A correction seems overdue (even welcome) by many. Including me.

I’m still long.

 

 

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Bitcoin is facing it’s own Brexit. Here’s what you need to know.

Similar to US Government, Bitcoin has three branches governing it: Developers (Legislative), Miners (Executive) and Users (Judicial).

Legislative power: The Developers create new code (Laws).

Executive power: Miners run the version of Bitcoin that is in the best interest of Miners. They can work with any party of Developers they choose, even if those Developers are not status quo.

Judicial power: Users choose to buy or sell Bitcoin (affecting supply/demand/price) including any versions created in a hard fork.

This is important because the three branches of Bitcoin are at war right now. A powerful subset of Miners are threatening to force a hard fork of Bitcoin. Think Apple splitting into two companies: Apple and Orange. Which stock would you buy and which stock would you sell? Now you are thinking like a user of Bitcoin.

The arguments between branches are so ridiculous that Vinny Lingham sold 90% of his Bitcoin and is encouraging other Users to defend Bitcoin by selling now to put pressure on Miners. An example of a well known User exercising proactive Judicial power.

If this subset of Miners cause a contentious hard fork it means consensus could not be reached. A contentious hard fork is like a big fat VETO by the Miners. It’s bad for Bitcoin and confuses the market.

If a hard fork happens the Users (Judicial branch) will settle the matter via price discovery (demand being the ultimate arbitrator, like the Supreme Court). I believe the fork of Bitcoin called Bitcoin Unlimited will die off. The cost will be substantial and there will be no winners, only survivors.

Despite the damage, Bitcoin will bounce back quickly. Bitcoin has been declared dead so many times it’s truly an example of “What is dead may never die.”

I am still long.

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Ethereum, DASH and Monero are the #2, #3 and #4 Cryptocurrencies by market cap behind Bitcoin. They are also in a huge bubble that’s been created the past few weeks. Here are some numbers:

Ethereum: up 178% in 30 days
DASH: up 350% in 30 days
Monero: up 60% in 30 days

 

 

When Bitcoin is up the “alt coins” trend down or sideways. When Bitcoin is down, the alt coins trend up. Recent news about the SEC denying the Bitcion ETF, continued contentious debate over a scaling solution for Bitcoin, the Bitcoin Unlimited bug and now Vinny Lingham calling for lower Bitcoin prices have set the alt coin market on fire. Twitter is full of Crypto traders FUDing and FOMOing from coin to coin. If you think trading stocks in they dotcom heyday was crazy try the 24/7 crypto market. Ethereum was up 30% in a 12 hour stretch this week!

This won’t end well for anyone except maybe Bitcoin longs. Bitcoin is antifragile. It’s been through this before. Bitcoin has an ecosystem and most importantly it is used as a store of value and money. The same cannot be said for Ethereum, DASH or Monero.

Very few companies survived massive runs in their market cap during the dotcom bubble. I expect the same of Cryptocurrency. When this alt coin bubble pops, and it will, those bubble profits will make their way back to Bitcoin.

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