The last two weeks have been extremely exciting and volatile in the Bitcoin and Crypto space. With Bitcoin flirting with all the time high levels again, with reports of yet more and more institutional investors and traders flipping bullish on Bitcoin, it seems that Bitcoin breaking all the highs is a matter sooner rather than later. Now's the perfect time to hodl up, sit back and enjoy the ride, but for those trading your Bitcoin, be careful not be to be over leveraged. In the last 2 bull runs, even price dips of up to 30% can occur in a flash, shaking out many over leveraged traders or investors with weak hands. The worse than you can do is to lose your precious Bitcoin during a bull run, like we are seeing now.
Some quick updates on the latest developments in the Bitcoin space (they're mostly good)! and a tonne of exciting news from our friends at BlockFi.
Updates and Happenings
1. BlockFi has partnered with Visa to launch the world's first Bitcoin cashback credit card! This is one of most exciting pieces of news I've come across lately. Beginning in 2021, BlockFi credit card users will be able to receive 1.5% in Bitcoin cashback on their purchases (only available in the US at the moment, but stay tuned). This is a great way to easily increase crypto exposure and to introduce Bitcoin to the currently curious but not invested. Think about it, it's a way to start earning small amounts of Bitcoin without buying any directly. If you're currently earning 30 dollars in cashback from a regular credit card, and now have the option to earn that 30 dollars in Bitcoin instead, I suspect many people, especially those currently already interested in Bitcoin, would go for it. Major companies are warming up to the crypto space, meaning that we will see more ways to passively invest and increased mainstream adoption. For my followers in outside of the US - The BlockFi credit card has not been launched globally at the moment, but if you are interested in getting it someday; and don't currently have a BlockFi account, there is work to be done. The card will be launched first to existing BlockFi users, meaning to be at the front of the line, you can start making an account today. Coincidentally. BlockFi is also holding a Christmas referral promotion, meaning this season, YOU get twice the referral rewards ($50 dollars worth of Bitcoin). Join BlockFi here, or read about my review of BlockFi here.
2. Bitcoin a ‘Potential Store of Value’ That’s Very Volatile: Fidelity Digital Assets Head. During the Reuters Global Investment Outlook Summit 2020, head of Fidelity Digital Assets (FDAS) Tom Jessop said that investors are hoping bitcoin becomes a store of value. In the interview, Jessop noted that “we use the word ‘potential store of value’ as bitcoin is still extremely volatile, and by any standard perhaps would not achieve the mantle of a true store of value.” In an earlier report in October, FDAS wrote that bitcoin’s uncorrelated nature could be a strong argument that crypto’s market cap has reason to grow. Read more
3. Re-exploring: Trace's Mayer's conversation with The Investors Podcast (TIP) Podcasts are one of the major ways I learn about the developments in the Bitcoin space and how I abosrb myself with interesting POVs from some of the brilliant minds in the space. Recently, I decided to re-listen to one of the very first podcasts I came across - Trace Mayer on The Investors Podcast. Known as the "Hodler of the Last Resort", Trace Mayer is known as one of the few investors who had gotten into Bitcoin in it's earliest days and held on since then. His background in Finance and Austrian Economics allowed him to see the value of Bitcoin even from it's infancy, and now he shares his views about the current Bitcoin cycle and a future he envisions from Bitcoin. *Bonus information*, he also talks about a multiple he created, known today as the "Mayer Multiple", that has been alarmingly accurate in identifying time periods to buy and sell Bitcoin. Even though this is now more than a year old, it's arguably even more relevant in today's environment. A must watch! Link to the podcast here, and below.
Happy listening!