If the price action in crypto currencies over the last several months has proven anything, it’s that the blockchain has gone fully mainstream with global investors, major financial institutions and governments showing significant interest in the space. While a number of blockchain projects are moving onto the stage, the primary focus for investors has been Bitcoin, which has seen an increase of over 1,600% in 2017. And according to Frank Holmes, there is much more to come.
In an interview with SGT Report, Holmes, the Chairman of Hive Blockchain Technologies, the world’s only publicly traded blockchain mining company explains that, while roughly 78% of the available 21 million Bitcoins, or about 16.4 million, have been mined up to this point, there are probably only about 10 million coins in actual circulation around the world because somewhere on the order of 25% have been lost forever due to misplaced wallet access keys and other issues. Moreover, of those 10 million or so available coins, it has been widely reported that about 1000 “whales,” or high net worth investors, own some 40% of the coins, creating a scarcity in the market that has left millions of global investors chasing a limited supply of BTC.
Holmes suggests that this limited availability works to the advantage of cryptocurrency miners who use expensive computer hardware mining rigs to process transactions on the blockchain, because with so much investment capital moving into the space they can hoard the coins they mine and sell into the market during price spikes while loading up on more coins when markets dip. Hive currently mines Ethereum, Ethereum Classic, Bitcoin and will soon move into Litecoin and other popular cryptocurrencies using the same strategy:
We’re hoarding the coins… we mine virgin coins and in fact we are getting offered premiums for our coins because they’ve never been tainted.
We never buy the coins… anytime it has a huge surge we will sell one, two or three percent… and as soon as it corrects we just mine more and replenish ourselves… We want to wait until we get at least 20,000 coins and then we can turn around and use our quant models, so we’re doing things very unique…
(Watch this interview at Youtube)
Most crypto currencies have a maximum supply of coins that can ever be mined. As Bitcoin demonstrates, a percentage of those already-mined coins will be lost. Another percentage will be locked up by high net worth and long-term investors. These mechanics create a situation where, perhaps only a little over half of the actual listed circulation of coins is actually circulating.
With this being the case it’s not difficult to see why, as tens of billions of dollars, and perhaps even trillions as has been suggested by investment gurus, continue to pile into these assets, prices for top tier crypto currencies could continue to rise exponentially in coming months and years.
You can learn more about Frank Holmes at Hive Blockchain Technologies
For more interviews like this one visit SGTreport.com
This is something that is not talked about as much as it should be. Yes there is more and more money being put into Bitcoin and other currencies every single day but they can’t issue new coins so the supplies of available coins are more or less locked in.
Starting tomorrow investors will also be able to purchase futures contracts. The whole game is about to change and I expect that we could see explosive growth because it will now open the flood gates to even more cash inflows.
Up until now, except for a handful of companies like the aforementioned Hive Blockchain Technologies or the GBTC ETF, the only way your average retail investor could buy bitcoin was through crypto exchange platforms.
I don’t know which way the price goes next, but the mid to long term trend is definitely higher.
can you say bubble?
Bubble!
But is it really at the top? Market cap of BTC is $260 billion. Can it go to $1 trillion? Everyone said it was a bubble at $5000. Now it’s over three times that.
Just sayin…
RT reported a few hacks on bitcoin that were in the millions of dollars. My cash and metals are not subject to that crap. One was 68 million! If I had 68 million to spend on shit like that NO ONE except military could touch me lol.
Not true.
Bank accounts are hacked everyday and now precious metals have been found as fakes.
I must share this…
https://www.youtube.com/watch?v=TRt4hQs3nH0
Announcing my IPO hello this is the IPO for boofoocoin it is very rare very valuable and going to a gazillion dollars you can invest at http://www.dipschitt.com
By allowing paper futures contracts for Bit Coin, they will make it so Bit Coin can be easily manipulated by governments in the same way they currently manipulate precious metals.
Bit Coins dirty little secret was it had become the standard tool for the crime world to move or launder money. Governments are learning how to track it, it’s soon to be useless to the crime world. Bit Coin is soon to lose its biggest active customer.
Final issue, every decent hacker in the world is trying to figure out how to crack Bit Coin. The moment they do, bit coin is done. Even if just the right computer virus comes alone, Bit Coin is toast.
In an EMP attack, bit coin is toast, in fact all significant US trade is electronic these days, US Dollars in Cash only represents a tiny percent of transactions.
In any of these scenarios where a fiat currency is crushed, precious metals will be king.
Another dirty little secret, all the while gold and silver prices are being crushed, the big guys like the JP Morgan’s are buying physical gold and silver like crazy, even as they tell their own customers not to. This should make the hair on the backs of people’s necks stand up.
Water, food, self defense, transportation, and shelter, come first, then if you have money to spare, buy physical precious metals.
Trading on the CME and COMEX are meaningless and control nothing.
It is a cash market and parallel to the real BTC market. It is irrelevant and simply a way for those in power to financialize BTC.
Period.
Good call. However, let me suggest this. there are other crypto currencies. If the Bank pulls the rug out from under the economy, but the entire thing doesn’t fall in, say we have inflation issues but we still have infrastructure, what then? We still have phones, etc. then we can still have crypto wallets. if a crypto like monero, which i hear is more secure then bitcoin, is accessible, it is hidden, better then gold or silver. As long as the blockchain hasn’t been compromised then it might be better then cash, because its value might be better insulated from the inflation that will affect the bank notes. in which case the crypto will be worth more as the dollar tanks. that doesn’t mean that you don’t have gold and silver as well. you will need that after the rest of it goes to shit.
This is all a house of cards built on a foundation of shifting sand. I have gold and silver in my pockets and I also have a bunch hidden. It’s mine.
No joke. Let’s all wrap our heads around this. Some bunch of geeks ‘creates’ 21 million BitCoins. 25% of the available so far 16.4 lost due to of all things – some people lost their ‘keys’. 12.3 million owned by others – ~4.9 million by just 1000 people. Leaves but maybe 7.4 million for the rest of the 60% of ‘investors’. And the mechanism for hoarding is some set of passphrases/words on storage drives of some sorts. Yeah – good plan. When you geeks just going to decide to e-print some more? Huh? My God, people are so gullible. I’m going back to tulips. At least they’re pretty in the spring.
I sure wish I would of invested when I thought about it years ago when it was $.008 (July 2010)$500.00 would of bought 62,5000, which would be roughly 1 Billion $$ today
All this is, is a form of gambling.
You know if you go to a Casino you
are going to lose in the end.
If you play the stock and PM market,
you will lose in the end, if you are
not on the “inside”.
Cyber money is even more risky.
it depends on a machine, a very complex
communications network, and a Math protocol
that few of the users understand.
Buy into it at your own risk.
relik, When I used to work in vegas I would play 20 bucks a week when I CASHED my check. I came out ahead in the long run. Lose, win lose, win, but in the end I did ok. The trick is…. learn to quit while your ahead! Hard to do for most folks. I would say to myself, ok just 2 beers and I’m out. Like I said, in the overall I made a little fed notes. But one time, I got drunk as hell and was driving home when I crashed into a busload of illegal aliens and knocked them over the top of an overpass and sent them crashing to their death below. I couldn’t understand why people were cheering me. (just kidding lol) 🙂
The stock market – Long term held quality stocks always make money. Crashes are rare, sometimes avoidable like the 2000 tech bubble, and 2008. In both those crashes I got out early and got back in at the bottom and had my best returns in years.
When I started investing, I read every book in the local county library on the subject, provided it included a section on “when to sell”. I was astounded by the books that never talked about when to sell, and smelled a rat. They were the buy and hold no matter what fools. Brokers teach this, but never ever do it with their personal account.
I had a margin account, needed if you ever want to short a stock. Dangerous, but I made money. I could buy a frightening amount of stock on margin. I even fat fingered a buy one time, and accidentally added a zero or two, and bought a scary amount of Apple stock. I discovered my mistake when the buy confirmation email came through, and the stock had dropped since the buy. Oh crap, it lost a few pennies and I’ve lost thousands. I stood my ground, and had my white knuckled finger on the sell button for five hours. When the stock was up 63 cents I hit the sell button and made 2 months salary. I stepped away until all transactions fully cleared to avoid day trader legal pitfalls. I was an active trader, but never a day trader. This was like 15 years ago.
In recent years I’ve lost my active trader status, because it’s just gotten too weird with government intervention directly into markets, and I’ve sold off and backed away. The trick now is to guess which stock the government wants to win. It’s no longer based on financials, charts, AI neural net analysis, or anything tangible, it’s become political, and yes the deep state is fully and directly involved. Thus I suggest precious metals.
There is a war on. Normal rules are suspended. These days I suggest investing in long term foods, water, ammo and keep a low profile. Ok I failed the last, but hopefully readers won’t.
See! Max And his bitch Stacy had it right. Buy silver, crash JP Morgan.
lol…yea he was constantly saying that.
Now, he’s all about bitcoin. He rarely ever talks precious anymore.
I was told by an old guy once if you can not use a crayon and one piece of paper to explain an investment, then it is gambling. If one choses to put ones money in something one does not fully understand then one should do not whine or complain when one loses money.
I have tried to grasp this block chain concept, I have tried to grasp this “only online” concept… and as much as I hear it going up in value I wouldn’t put my money in it.
On deals like this I am pretty sure they are just waiting for my dumb ass to be the greatest fool (ya know the “greater fool” concept”?), put my money in and BOOM!!! they will pull the carpet out.
Crypto schmypto I aint falling for this bulsht…
And it is OK I wont make money of this crapypto, I don’t mind missing out on some investments. I remember back in 199X when I missed out on Starbucks, I said “what a dumb idea”…. Hell, to this very second I do not understand why ANYONE buys a $5.00 cup of coffee… seriously wtf? Who spends that much on coffee? AND THEY DO IT ALL OVER THE WORLD?!!?
people are dumb
Couldn’t have said it better myself. Could BTC be means to an end? Reset?
The laws of economics still apply regarding supply, demand, and price. The idea here is, by restricting the supply of Bitcoin (artificial scarcity) the price of the existing Bitcoins is driven up. After a new high is reached the dumping will start. Watch for bit Bitcoin players selling. When large dumping starts, GET OUT – QUICKLY.
This is more than just a bubble – it’s a pyramid scheme. And we know how pyramid schemes play out. The only people who make out are those who got in early and are near the apex of the pyramid. The Johnny-come-latelies end up holding the bag when the pyramid collapses.
….until the power goes out for 1, 3, 12, 120? months.
I personally would NOT mess with it. The entire thing will blow up just like everything else sooner or later friends.
No thanks. . .
as soon as the pension funds start to invest, that will be the peak and then the crash, as when oil was $140 a barrel. jmo
Today, each bitcoin transaction requires the same amount of energy used to power nine homes in the U.S. for one day. And miners are constantly installing more and faster computers
I do not have the knowledge or confidence in crypto currencies to understand what is going on. I might be missing out on a great opportunity.
A word to the wise….
COULD NOT SELL $10 OF BITCOIN INTO A RISING MARKET
Bitcoin futures start trading this week on the CBOE and at the CME the following week. There has been no practical way to short Bitcoin until now. The new futures will bring sellers into the market. Bitcoin is obviously a huge bubble that has siphoned interest away from gold assets. Bitcoin has zero intrinsic value, which is perfect for the current speculative bubble mentality. Individuals are buying Bitcoin simply because it is going up. When it starts going down they may find themselves locked in a roach motel. A Yahoo Finance story by Rick Newman today said he had trouble trying to sell $10 worth of Bitcoin into a rising market. He got a SELL FAILED message. If you have problems selling $10 worth of Bitcoin into a rising market, imagine trying to sell $1 million into a falling market.
Additional commentary …
https://kingworldnews.com/major-alert-one-of-the-greats-in-the-business-just-issued-this-dire-warning-about-bitcoin/
For all intents and purposes, you could think of this as a stock or security.
Hoarding it fits a well known pattern — a form of engineered collapse — called pump and dump.
I wanna know if you can eat it