Few people in the cryptocurrency markets are more bullish than I am on where I think the future of this market is heading towards. I have gone down the rabbit hole, and my conviction is unwavering. It is easy to be bullish while prices are surging upwards when everyone begins dreaming about being able to afford their dream house or possibly being able to retire. But, fewer people can remain bullish when prices have dipped by 50% or more. Think back to just last month when many of the crypto YouTubers with the largest following was declaring that the multi-year bear market had arrived and it was time to sell into Stablecoins to wait out oncoming doom that would follow. Now don't get me wrong, it was an understandable way to be feeling. The price of bitcoin had dropped to $32k, more than 50% below its previous all-time high set in November. War was just breaking out in the world, and there was now even a possibility of nuclear weapons being used. Then throw in the fact that the rest of the world is also dealing with record inflation and debt. Many feel that a recession is unavoidable. All of those threats still exist, but since that point bitcoin has risen by over 50%, and now is sitting in the $46-47k range. People begin to panic when prices drop quickly, and that is when they make rash decisions that they could regret for quite a long time. Imagine being concerned about bitcoin dropping to $32k, when you believe that the price could rise to $1 million or more before the end of the decade.
And that is why I am starting a new monthly, ongoing series. A series about "Why I'm Bullish," and why you maybe should be too. While it is easy to read the bullish articles on those great green price days, it is less easy to do so on those depressing red days. But you must always keep an even mindset throughout. If you are unaware, I wrote an ongoing monthly series, "My Crypto Earnings." In that series, I keep track of the income that I am making with cryptocurrency. All in hopes to gain financial freedom and live a better life. I share the articles in hopes that they will help motivate others to begin their journey as well. Once you have gained financial knowledge, it is like unlocking a life cheat code, and it is amazing just how much easier everything becomes. Now, back to this new series, "Why I'm Bullish." Not only will this be a good time capsule into how I was feeling, but the market in general as well. But, too many people only look at the price, it moving up or downwards. But don't get into the thick of things and research what is happening. The progress that is being made, and what is on the horizon. A lot of what I will talk about will be things that do affect the price, adoption, and also things happening with the tech and protocol as well.
So without further delay, let's get into the first article for why I'm feeling bullish about bitcoin and cryptocurrency in April.
1) Bitcoin Conference 2022
As I'm writing this article on April 4th, the Bitcoin Conference 2022 in Miami will be starting during the next few days. This is quickly becoming the biggest event for not only bitcoin but cryptocurrency of the whole year. It is also quickly becoming the showcase event where big announcements are made. If you're a video game fan, you will know how big the E3 conference was in the past. That was where all of the biggest new announcements were made for the year. And that is exactly what the bitcoin conference is becoming. Just last year, Jack Mallers went on stage and had a special announcement from the president of El Salvador announcing that his country would be making bitcoin legal tender. There have been rumors swirling around of possible announcements being given this time around, and all of them have been quite big. Mallers does have a segment again this year that has been tagged "Jack Mallers Announcement." The rumors have been heating up that he will announce a Strike partnership with Apple to have bitcoin lightning integration in Apple Pay. Something that would be game-changing. Why only a rumor, for now, he has been making many Twitter posts hinting at Apple news throughout the last few weeks.
Explosive price action and adoption could be happening soon.
2) Luna Buying Bitcoin to Back UST Stablecoin
This was a move that even surprised some of the biggest bitcoin maximalists. We have had our attention focused on bitcoin being adopted by hedge funds, being put on companies' balance sheets, and also being adopted by countries. But it being bought and used as collateral for stable coins was something that many of us had not considered, but it makes a lot of sense. The cryptocurrency market goes as bitcoin goes. And it also would currently die if bitcoin died. Many people consider bitcoin to not only be the strongest form of money out there, but also the most decentralized as well. And it makes sense that UST also being a decentralized stablecoin with no allegiance to any one country would also choose the coin that doesn't choose sides or winners. It is clear just how large of an effect that this can have on the price of bitcoin, with Luna buying approximately $1.5 billion worth of BTC, and it caused bitcoin to rise from $37k up to $48k in a matter of a few weeks. And they aren't finished buying yet either. They have another $1.5 billion ready to buy additional bitcoin, and also shortly plan to buy up to at least $10 billion worth of bitcoin.
This fact alone should have you incredibly bullish on where the price of bitcoin could soon be heading towards.
3) Bitcoin and Crypto Finding Real Use-Cases During World Geopolitical Events
Throughout the last few years, I have been amazed at just how much progress bitcoin and crypto have been making in terms of people's thinking about it. I estimated that the influx of Covid, worldwide inflation, and a variety of other factors, had sped up the adoption of bitcoin by 10 years. Not only in adoption but in people's perception of it as well. I had thought that potentially we had reached the limit in terms of our maximum process being able to be made during this cycle, but I was proven wrong. And this was actually when the greatest possible marketing happened for bitcoin, and it was free. Of course, I'm referring to the whole Canadian freedom trucker movement and also the war breaking out between Russia and Ukraine. Where a country's reserve funds were seized and sanctioned. In desperation, Ukraine was looking for any help possible and began accepting donations in crypto to help their cause. Between all these things happening, there is no longer a single person that can ever say that bitcoin doesn't have a real use case. That it isn't needed. There will be other FUD that we will always be contending with, but this is a major milestone that will be remembered in the following years to come.
3) Ethereum 2.0 Still on the Horizon
While the sections above have dealt mainly with bitcoin so far, there is a very bullish event fast approaching that will have a huge effect on the market, and not enough people are talking about it. The long-delayed Ethereum 2.0 update is soon approaching its release date sometime in quarter 3 of this year. This is the moment when ETH1 and ETH2 chains will be merged into one chain, becoming a Proof-of-Stake-only chain. Not only that but there will be a giant difficulty bomb implemented into the protocol as well, which will drastically decrease the inflation rate of the chain. At the same time, since there will no longer be any miners that need to be paid, those same transaction fees will instead be added to the ETH staking rewards. Which could cause interest rates to double, or potentially triple. Taking into account that the difficulty rate will be increasing greatly, ETH continues to be burned via EIP 1559, and staking rates are about to dramatically increase. This all means that not enough people are talking about Ethereum. We will likely see Ethereum's price above $10,000 this year, if not much higher. I'm trying to accumulate as much as possible before everyone else catches on to this fact, and stampedes over to accumulate more.
4) Lightning Being Implemented on Kraken's Exchange
And finally, a new story that I don't feel got enough attention. Kraken just implemented Lightning onto their exchange allowing instant deposits/withdrawals of bitcoin via lightning which are also very cheap. While it is free to deposit via lightning onto Kraken, I do need to note that there is a 1,000 SAT fee for withdrawing. They plan to decrease that as time goes on, but it is still much cheaper than their layer 1 bitcoin withdrawal fee. Over the last year, we have been seeing unprecedented growth for bitcoin lightning in terms of adoption. Especially when considering that an entire country is using it in El Salvador to make bitcoin being their legal tender a viable option. With that said, there are still extremely few on/off ramps available for lighting, so Kraken adopting it is a major milestone. Not only because it gives people a mainstream exchange on/off ramp, but also because it is sending a message to other exchanges. Bitcoiners and lighting fans are hoping this encourages other exchanges to implement lightning as well. Once this happens, this will help bitcoin's adoption even more. Those days of FUD about bitcoin being too slow, or too expensive to use will be forever finished. Remember this key point, once lightning's adoption increases, it has the potential do to 40 million transactions per second. That fact alone eliminates the use-case of at least 50% of crypto coins out there.
So how about you? What things in the bitcoin and crypto market have you feeling bullish right now?
As always, thank you for reading!