Our age is one mired in deception, confusion, and misdirection.
Of course, if you’ve ever read the classic book The Prince, you know we’re not special in this regard.
Which is why, taking a page out of Machiavelli’s handbook…
It’s always important to pay more attention to actions rather than words.
While JPMorgan’s Jamie Dimon was threatening to fire anyone under him who traded bitcoin (while it was later revealed JPM traders in London, at the same time, were buying)…
And the mainstream parrots were chattering about bitcoin’s demise…
And rumors of CFTC and SEC crackdowns were ever-present…
And, not to mention, Poland’s central bank admitted it hired a firm to conduct a “smear campaign” against bitcoin…
Meanwhile, on the other side of the table…
Goldman Sachs was floating the idea of launching a crypto trading desk.
Susquehanna was creating its own custody company to hold its cryptos.
George Soros’s $26 billion family office changed its tune on cryptos, preparing to invest.
Coinbase launched an index fund for wealthy investors and institutions.
And Grayscale Investments, an asset management firm, received $360 million from investors for their cryptocurrency fund, 66% of which came from institutional investors.
The persona was that bitcoin was dead. Behind the mask, however, institutional interest was trickling in.
Fast-forward to today…
All eyes are on, Bakkt, created by the team that operates the NYSE, set to launch in 2019, which will offer the first bitcoin-backed futures.
More than that, Starbucks’ decision to work with Bakkt has perked up some ears.
(Despite reports to the contrary, they won’t directly accept bitcoin, but integrate bitcoin into their app, which bitcoiners can convert into USD and make purchases.)
Also, on Feb, 12, Morgan Creek Digital announced the launch of a $40 million crypto venture fund, anchored by two public pension funds.
And, Boston-based Cambridge Associates, which specializes in pension and endowment consultancy, said this recently:
“Despite the challenges, we believe that it is worthwhile for investors to begin exploring this area today with an eye toward the long term. Though these investments entail a high degree of risk, some may very well upend the digital world.”
Bitcoin looks strong as ever.
While bitcoin isn’t budging on the good news…
It’s also not moving on bad news, either.
When CBOE Global Markets pulled their ETF application on January 23, due to the government shutdown, the price didn’t react, perhaps signalling the bottom is nigh.
Dan Morehead, CEO of Pantera Capital, said: “the underlying fundamentals are much stronger than they were during the 2014-15 winter.
“People have been talking for years about the impending institutional wave of money coming into the markets… I think we now actually have the required conditions for that to happen.”
Institutional investors want a custodian that’s well-known and trusted. Up until now, it’s been a pipe dream.
“But now,” says Morehead, “you have firms like Intercontinental Exchange’s Bakkt, Fidelity, or Erisx, doing varying institutional grade custody over the next few months.”
The smart money is waiting for a clear bottom…
They’re waiting for the retail investors to capitulate, curse the Bitcoin gods, and send the price plummeting one last time.
As venture capitalist Chris Burniske pointed out:
“Regardless of whether BTC breaks up or down, there are a lot of big buyers watching closely. A lot of smart money is hoping to nail a bottom (likely in the high $2,000s, just cracking $3K)… or come in quickly when there’s significant consensus that the bottom is in and the situation is de-risked.”
For retail investors, however…
Bitcoiner and CEO of Rhythm Technologies Alec Ziupsnys, offered up a few words for anyone waiting for the right time to get in:
“Worrying about catching the exact bottom is like trying to pick up a penny in front of a steamroller.”
As Ziupsnys also points out:
It becomes much easier to hold bitcoin when you understand what it is, and what it could become.
Some recommended reading, if you’re not already hip:
The Internet of Money by Andreas Antonopoulos
The Bitcoin Standard by Ammous Saifedean
The Sovereign Individual by James Dale Davidson and William Rees Mogg
And, for more practical applications…
If you want to know the best ways to buy and keep your bitcoins safe…
How to separate the wheat from the chaff (the few who will rise and the 95%+ that’ll fall by the wayside)…
And, why, if you’re not in yet, you should consider buying 1 bitcoin, locking it away, and forgetting about it…
It’s all much simpler than you think.
Managing editor, Laissez Faire Today