To The Moon
Is Bitcoin back on course to the moon again? This week we saw BTC eclipse the $4000 mark for the 1st time ever with many saying its Japanese demand fueling this new high. This of course is nothing new, as we have been seeing the rise of Bitcoin in Japan for months now, but the recent volume does seem to be largely coming out of Japan with this new higher push. This week a wave of optimistic price predictions have been coming out of various media outlets, one of which predicts BTC to go over the $5000 mark in 2017, largely because of the imminent activation of Segregated Witness, a cool piece of tech to be added to BTC’s codebase which is intended to help Bitcoin scale to new users. Another source, CNBC, expects Bitcoin to be the best performing asset of 2017.
It does seem that Bitcoin has new momentum again, and there is no telling when or if it will stall out any time soon. Of course there will be some pull back, but it’s anybody’s guess when that will be. It seems to me that a possible reason for this short term bull trend is due to people’s anticipation of a coin split resulting from a contentious hardfork of SegWit2x. I see two possible scenarios resulting from this.
First scenario: People that held BTC before the BCH/Aug 1st fork got a free double balance of BCH just by being holders of BTC. Now many are thinking that there could be another possible coin split coming out this “2x” part of the SegWit2x roadmap where there is a planned hardfork scheduled some time in November. So, if we get another split, then people will want their “free” coins again. This is bullish for BTC right now because some people may be buying for that reason alone. Just something to think about.
Second scenario: The “2x” hardfork goes as planned and no split occurs. This to me would make BTC better than it is now. I know there are many who share this view because it would keep all of the supposed benefits BTC has now with the adoption of SegWit, but it would also give even more cap room. Whatever your belief is on this debate, I am confident the overall aggregate market would consider this a bullish development for BTC and would be reported as such in the media, which would most likely put upward pressure on the price yet again. So in either case, it might be a good time to hodl.
BTC In Orbit for First Time
This week also marks the event of Bitcoin being broadcasted back down to earth from multiple satellites in space for the first time ever. Blockstream, a technology company that provides funding for Bitcoin Core, has announced its satellite service available to anyone who wants an updated copy of the Bitcoin ledger. This should, in theory, give access to almost everyone on the planet the ability to use bitcoin. This service is being provided free of charge to anyone who wants to use it. This could be a game changer for an estimated 4 billion people that do not have access to the internet around the world. If Bitcoin and cryptocurrencies in general want to rival fiat currencies, then this is a major development in the right direction.
BCH is Taking Off
BCH (Bitcoin Cash) has continued to prove nay sayers wrong with another impressive week of price gains which showed the world people are demanding this 2 week old currency. Earlier today (Aug 19th) BCH soared to over $900 a coin but (at the time of this writing) has pulled back to around $780. This is all very interesting because this also means that BCH is now more profitable to mine than BTC. We may see an exodus of hashing power leave BTC to go mine the BCH chain. What used to be inefficient, non profitable mining equipment is now profitable again. I personally have actually started to benefit from this event. About 2 years ago, I bought an old Bitmain S5 Antminer ASIC to learn how to mine BTC. I bought it used on Amazon for around $100 shipped. It didn’t even beat electricity at the time I bought it. Today it’s on and running around the clock and is actually profitable again thanks to BCH or Bitcoin Cash’s different difficulty re-adjustment scheme. Just out of curiosity, I looked to see if I could pick a few more of these miners up, and today they are selling for around $500-$600 dollars a piece, so I probably will not. Prices move fast when algorithms re-target I guess. Much like BTC, there is no way of telling how long this bull run will last with BCH, but it looks to be alive and well today.
One last thing to mention about BCH, or more importantly how to retrieve your BCH, BTC.com has released a tool that works for many wallets that are compatible with the BTC.com wallet structure. A few examples are the Mycelium wallet and the Blockchain.info wallets. Here is a blog post of how to get and use this tool.
Young BTC Millionaires
With each new push up in prices, I always wonder how many people have become millionaires because of this increase? Well, here are two people that became millionaires in the last couple of years. Meet Jeremy Gardner, a two time college dropout who is now a self made millionaire because of cryptocurrencies like Bitcoin. He now lives in San Francisco in a place they call the “Crypto Castle“. In 2013 Gardner created a decentralized prediction marketplace called Augur. Next up, we have Erik Finman, a teen that started investing in BTC in 2011 at a price of $12 for 1 Bitcoin. He later dropped out of high school and is now also a self-made millionaire. With his new found money, this entrepreneur created a startup called Botangle, an online school platform that can be tailored to specific interests. I just love these stories, and I think we will see many more as cryptocurrencies continue to push into mainstream adoption. Lets all hope that prices keep going up, making these guys Bitcoin billionaires, because that would make some of us Bitcoin millionaires one day too.