Why you haven’t missed the boat.
If thinking you are late to the party is stopping you from investing in cryptocurrency then you are wrong. You may have not made it to the equivalent of the Wednesday at Glastonbury festival but you still have the rest of the weekend ahead of you. And besides… that’s when all the headliners are.
For the likes of Bitcoin, the flood gates are beginning to open. Chances are, you are reading this article following your friends, constantly banging on about all the money they are making from cryptocurrencies and Bitcoin, but you are thinking am I too late?
Well, we are here to give you the green light. There will always be someone who got in earlier than you or bought at a better price. The aim of the game is to secure financial freedom and the only person you are competing against show be your past-self.
Fundamentally, the most basic metric of all, is there will only ever be 21 million Bitcoin. EVER.
You don’t have to be a genius to work out what that is divided by the current 7.8 billion people on earth.
But, here at blocmates, we don’t judge if you are rubbish at maths. 0.00269230769 BTC for everyone on earth. The problem is, humans are, inherently, human printing machines. So that amount of BTC/people will drop over time…
If we have a look at some on-chain data. In human language that means information directly from the blockchain. The best kind.
Glass nodes is a blockchain data tracking website, which is great for tracking realtime information and it straight from the source.
The number of Bitcoin addresses has been growing exponentially over time, which is no surprise and is currently at around 780 million addresses. This means that at any time in the history of Bitcoin, if anyone opened an account, made a new wallet, forgot their private keys, or in any way shape or form received or sent Bitcoin for the first time they created a wallet.
Examples of BTC wallets you will have are, Coinbase, Binance, hardware wallets, Trust Wallet or any paper wallets for the OGs in the room.
I think over the years I have probably had around 10+ Bitcoin wallets, very wasteful I know and I should probably get round to checking them…
Given our current global population that would suggest that 10% of people have BTC addresses. But what we also know is that 1 person can have multiple addresses. So that estimate of 10% is too high. But by how much?
Well, it’s difficult but there are a few things we can do. We can look at the current active wallets. An active wallet is defined as a wallet address that has either sent or received Bitcoin on that given day.
On February the 8th there were around 1.3 million active wallets. Interestingly enough it is very similar to that of the 2017 all-time high of $19K. What does that say? Less active wallets but a much higher all-time high of $46K. People are holding and new people are buying.
Another key indicator is the new wallet addresses chart. These are wallet addresses that have first appeared in a transaction on the blockchain. So new wallets either from new accounts being made or newbies signing up for the first time.
The peak of new wallets/day was at the ATH in 2017. The number of new wallet addresses hasn’t been reached during this bull run and on the run-up to the current ATH! What could this mean? Well, people are holding and not needing a new address and also it could indicate that the general public hasn’t yet jumped on board.
We know from looking at app.intotheblock.com that 61% of all Bitcoin holders have held for longer than 1 year. 25% have held from 1-12 months, whilst 14% are less than 1 month. The majority are holding and we are too.
All this is speculative of course. You can DYOR based on the charts above.
The big money is coming…
If you haven’t fallen asleep by now, we apologies for the dull number-crunching above. Let’s get into some more exciting news.
There are huge institutional investors coming into this space and hoovering up all the Bitcoin they can get their hands on. Grayscale are an investment company, specialising in digital currencies. They currently hold 649,130 Bitcoin…
Yes, you read that right. They at the time of writing, have over $30 Billion worth of Bitcoin. Or roughly 3% of the total supply! They allow outside investors to invest in their Bitcoin trust (BTCT). This means that people can invest in the BTCT, which is performance-determined by the price of Bitcoin.
If Bitcoin is doing well then institutional investors can bet that the BTCT is going to go up. It’s effectively a loop-hole to allow regulators to invest indirectly in unregulated markets. BTCT, is a security, meaning it has regulatory approval and is subject to regular capital gains tax and everything that comes with well-performing assets.
So who else is getting in on the action before you?
Well, you will have seen that Elon Musk and Tesla have just purchased $1.5 billion worth of BTC and will also accept Bitcoin as payment. In our opinion, this is the first but certainly won’t be the last.
There have been calls for Apple to come to play at the Bitcoin table. If they do decide to turn on Bitcoin wallets in the iPhone wallets section. This could be huge. Given the high-security payment which could be coupled to that wallet, mass adoption could literally be at everyone’s fingertips.
Visa and PayPal have been sniffing around the cryptocurrency space for a while now, dipping their toes in but never going full headfirst. Now, MasterCard is allowing its merchants to accept cryptocurrencies as payment later in the year.
They are all coming. The companies who fail to adopt early will be left and the gulf between the have and have-nots will increase exponentially. So if you are earlier to adopt Bitcoin than Apple, you might be still on to a winner.
Bitcoin – The new global reserve currency.
There is a real argument for Bitcoin replacing the dollar as the global reserve currency. This is the global asset that all countries hold in their reserves (Banks). The USD accounts for around 61% of all “‘reserves’, but with the money printer constantly being turned on causing huge inflation, why couldn’t Bitcoin be used?
If nearly two-thirds of all global reserve currency is held in USD and 22% OF ALL USD WAS PRINTED IN 2020, what do you think? Yes, you read that right nearly a quarter of all USDs in history were printed last year alone…
It’s fair and would take the strain off the banks as it is decentralised and gives people their independence. Ahh, that’s why they wouldn’t want it as a global reserve…
Again, because of the limited 21 million Bitcoin supply, this would be a great asset to hold as it will increase in value as more people hold it.
For me, it is a no brainer. But I am not a big bank who pulls all the purse strings.
What about other cryptocurrencies?
With the everchanging landscape and constantly developing in the cryptocurrency industry, there will always be opportunities. Always.
Nothing more is highlighting this right now than the Binance Smart Chain boom, which is seeing coins go from nothing to $150 million market cap companies in 2 months. If You manage to catch one of these on their meteoric rise you can make some serious FU money. Yes, it does stand for that…
Take Beefy Finance for example. Released in December trading as low as $5, it has a very reduced supply of 80,000 BIFI. It is currently trading at $1,777. Do the math on that one. Its an excellent project and still hasn’t made its way to Binance. When you can pick coins/projects up before the rest of the world and especially before they hit a tier 1 exchange, you may be on to a winner. To see how to pick a 100X gem head to our latest article HERE.
If they aren’t on exchanges yet, how do you expect me to buy them?! I hear you. I am currently writing a walkthrough that will cover how to buy small value coins through pancake swap and Uni swap. If you follow our telegram, this will be released there first. Anyone is welcome.
You can read our What is DeFi article, which will confirm what we have just said about, everchanging landscapes and new opportunities. The decentralised finance industry has exploded within the last 2 years and doesn’t show any signs of stopping. There is currently nearly $40 billion locked in these DeFi protocols. A year ago this value was $1.2 billion. To understand DeFi head to our article HERE.
On the flip side of this. These constant gains won’t last forever. The best time to be accumulating the best coins is when they are moving sideways and the market isn’t so volatile. Following the 2017 market all-time high, it took around 2-3 years for the market to begin the next bull cycle. It isn’t always this rosy. Be greedy when others are fearful and fearful when others are greedy.
Use the downtime to accumulate and lay the foundations, then reap the rewards when the next cycle comes. It will come, be patient and have hands of steel. Don’t do all the hard work, wait the market out, for you to then sell before the inevitable pump comes. Just be patient.
Warren Buffet once said that the stock market is a device for taking money from the impatient to the patient. This is exactly the same.
To summaries, in the long run, you are early. This isn’t a get rich quick scheme, although many do. Be patient, don’t chase pumps and don’t chase memes. Believe in your process and DYOR.
If you are still unsure after this join our telegram and ask the group what they think. We are an open bunch, no hostility in there. Everyone is welcome.
Get in touch with us via the Telegram if you need any further information, we are here to help, no strings attached. As always DYOR before any purchase.
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