Just little less than three weeks ago BTC's bull run seemed to be losing its steam and I was wondering what the new driver would be in order to make it stronger and lasting.
And there it came as if by order - Elon Musk changes briefly his twitter autobiography with #bitcoin hashtag, which sent BTC up 20% from its recent dip and it was reported by all kinds of mainstream media including the Forbes magazine. Just a week later what was suspected was confirmed, Elon Musk is in the game with a significant chunk. This prolongs a series of notable corporate treasury investments, which were found by many to be controversial as the stocks of the respective companies would be becoming a proxy for BTC and its price movement. On the other hand, it might be a longer-term winning strategy to invest cash piles in other reserve variants as a result of the fear of inflation in USD terms. I tend to like the latter view as it suits my HODL and accumulate idea I practice for several years now.
As I have commented before, I truly believe that there are 5 main fundamental pillars, which will continue to support the BTC investment case for the time ahead - I wrote a post on this on December 10th and now I feel like an experienced and enlightened crypto "prophet". I hope we will not experience a 50-60% drawback in price, which will make my "prophecy" a fake. Anyway, these are my opinions and I firmly believe in them, please don't take it as an investment advice, but just as another opinion on the subject matter.
These five fundamentals appear to be even stronger today:
1. BTC is going mainstream. Is there any doubt about that now?
2. Major institutions embraced Bitcoin. I would add to that - even mainstream media are now regularly reporting about Bitcoin - in 2017 we could only dream about that!!!
3. BTC is become a real investment alternative not only for individuals, but now for corporations. Adding the highly charismatic and to many a controversial person Elon Musk to the equation is a real game changer! All mainstream media including a favorite like Business Insider are now quoting an RBC analyst who expects Apple to enter the crypto space and heavily drive further BTC and crypto addoption. I truly would like that to happen!
4. Scarcity will always pay off. I will continue to state my belief and single most important foundation of deciding to HODL and accumulate BTC is its deflationary nature. I have written a special post on this topic - Bitcoin would be a great hedge against inflation. This seems to be becoming a majority view and tendency of thinking nowadays.
5. Last, but not least - BTC remains the benchmark of the whole crypto environment. And yes - BTC still maintains a 60% market cap dominance. I have been expecting this to decline overtime, but it is surprisingly stable.
The network is also healthier than ever - check it out! Hash rate is at fresh ATH at 165 EH/s and difficulty is expected to climb to a new ATH in 8 days - over 22.34 TH. Plenty of support from miners to the price development and keeps growing. My old Innosilicon T2T 30 TH/s is still working and I continue to be in hobby garage mining for a little longer I guess.
So the story just gets better by the week, or even by the day. I will continue to stick to my plan to HODL and accumulate slowly without betting the house on it. I will keep doing it until 2025, when I have decided to analyze whether I would like to liquidate whatever build-up I have mainly in BTC and some in ETH.
