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Bitcoin Outperforming the Stock Market By a Whopping 10 Times in 2019

Getting towards the end of the first half of 2019 and Bitcoin has outpaced the stock market by almost 10 times.


2019 Scorecard: Bitcoin 111%; Stock Market 12%

Tweeting on Friday, Morgan Creek Digital CEO Anthony Pompliano noted that Bitcoin price 00 is up by about 111 percent in 2019. Meanwhile, by comparison, stocks have risen only 12 percent within the same period.

Between April and May alone, BTC has added $2,000 to its market price. Such is the extent of Bitcoin’s 2019 run that as eToro’s Mati Greenspan puts it:

At this point, a $200 move in the price of Bitcoin could easily lead to a move of $2,000.

Speaking recently to CNBC, billionaire venture capitalist Tim Draper pointed out the emergence of investor fatigue for some of the companies like Uber that have newly gone public.

According to Draper, established brands going public aren’t going to experience massive price growths. Instead, Draper expects stock value increases between 10 and 20 percent.

Bitcoin bulls, however, don’t envisage any price fatigue for the top-ranked cryptocurrency by market capitalization. BTC has so far remained in close proximity to the $8,000 mark in May despite a few downward retracements.

BTC is a Great Diversifier

In an interview with CNBC on Wednesday (May 22, 2019), Mark Yusko, the Managing Director of Morgan Creek Capital Management described BTC as a great investment portfolio diversifier.

As previously reported by Bitcoinist on several occasions many commentators have said that BTC ought to constitute at least one percent of every investment portfolio.

Yusko also espoused sentiments similar to Pompliano’s saying Bitcoin is a better investment bet than stocks. Back in early 2019, Yusko highlighted Bitcoin’s potential, calling it the greatest wealth opportunity of our time.

Stock Market Decline Imminent

Bitcoin’s stock as a great investment portfolio diversifier might come into even more significant prominence on the back of an imminent market decline.

According to Yusko, the Federal Reserve saying they are closer to slashing interest rates indicates the emergence of economic weakness.

Central banks across the world from Japan to Australia and even the European Central Bank (ECB) are also reportedly on course to adopt similar dovish monetary policies.

The historical precedence shows that rate cuts tend to lead to market weakness as seen in 2001 or even full-blown meltdowns like in 2008.

For people like Travis Kling of Ikigai Asset Management and Max Keiser, BTC represents a hedge against the fallback from such “irresponsible” central bank policies.

By how much do you predict that Bitcoin will outperform the stock market at the end of 2019? Let us know in the comments below.


Images via Shutterstock, Twitter @APompliano, @CNBCFastMoney

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University Students Choose One Dollar Over One Bitcoin

YouTube channel, Capital Creators, performed an experiment offering students the choice of one dollar or one bitcoin. The overwhelming majority chose the dollar.


So this is the part where I mercilessly mock the US education system and berate US students for being so dumb, right? Well actually, no. It would seem far more productive to address why the students valued the dollar more, and help them to make the right choice next time.

Reasons One Might Choose $1 Over 00

Well, actually around $5400 when the video was shot, but you get the idea. Why did the majority of CU Boulder students want a dollar rather than a bitcoin?

One of the most common answers given was that the dollar was there and physical, and the respondent knew the value of it. So did the students think the value of a bitcoin was less than a dollar? Surely the majority must have been aware of bitcoin when it hit $20,000 and mainstream media? Did they really think it had dropped to nothing?

In reality, those asked simply didn’t understand or know enough about Bitcoin to assign it a value. The mainstream media’s generally negative or non-existent coverage meant that Bitcoin just wasn’t on their radar anymore.

Bitcoin Is Risky, But A Dollar Gets Me A Snack

One respondent vaguely knew that bitcoin is password-protected, and forgetting the password would mean losing her bitcoin. However, she reasoned that she wasn’t going to lose a dollar… because of course, nobody’s ever lost a dollar.

Many people reasoned that a dollar could get them immediate gratification in the form of a snack from the vending machine. This point is hard to argue… except of course a bitcoin is worth eight thousand of these dollars!

But aside from this, it does suggest that the micro-payments use-case is an important one when it comes to mainstream adoption. The sooner we can all pay for carbonated sugary beverages and snacks with a user-friendly and stable implementation of Lightning Network payments, the better.

And The Ones Who Chose The Bitcoin

One guy who chose the bitcoin explained that it was because he “followed bitcoin.” However, he had no way of receiving it because “he’d have to set up the app,” and was of the belief that “no-one ever trades it.” So even someone who ‘follows’ bitcoin, one would imagine through specialist media like Bitcoinist, didn’t have a wallet on his phone.

Another guy was aware that the price was going back up, and chose the Bitcoin. He had previously invested when BTC was going up, made $1,000 in a week and then lost it all. But he also had no way to accept bitcoin.

Of course, there may have been others who were more clued up but didn’t make the final edit of the video.

A Different Kind Of Bitcoin Bubble

As Bitcoiners, it’s sometimes easy to forget that outside of our little crypto-bubble is a whole world of no-coiners. If we want Bitcoin to reach mass adoption then we should consider it our duty to spread the word.

Whilst none of the participants in this experiment were ever actually going to get a bitcoin, the host did bring them up to speed. After hearing more about bitcoin’s value, utility, and how it works, the majority changed their choice.

The host also got them to download a wallet app and transferred them a token amount of bitcoin. This is exactly how I was introduced to bitcoin several years ago when our esteemed editor met me at a networking event. 20 minutes later I was the proud owner of $1 worth of bitcoin (worth over 30 dollars today!).

So I encourage you now to do exactly this. Offer everyone you know one dollar (few will refuse it), then help them to install a wallet and send it to them. Explain that they can just keep checking it to see its value, or they can add to and/or use it.

Oh, and tell them that if you’d given it to them six months ago it would be worth over two dollars by now.

What do you think of the students’ responses? Share your thoughts below!


Images via Shutterstock

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Weiss Ratings: Bitcoin Correction The Best Buying Opportunity Since 2015

Weiss Ratings believes that bitcoin price surging to $8,373 will open the doors to a once in a lifetime purchasing opportunity.


Weiss Says Buy the Dip

On Thursday Weiss Ratings tweeted that Bitcoin’s current technical setup presents the best purchasing opportunity for investors since 2015.

The independent rating agency based their assessment on analysis from their chief crypto analyst Juan Villaverde.

The analyst explained that Bitcoin’s recent surge to a 2019 high at $8,373 has primed the market for an impending correction that will represent the greatest purchasing opportunity since 2015.

According to Villaverde, similar price action occurred in 2012 and 2015 and the cryptoanalyst explained that:

In January 2012, for instance, after Bitcoin has rallied to $7 per token from its bottom of $2 just months earlier, Bitcoin suffered a 45% correction down to about $4. But that was a launching pad for a bull run that would take Bitcoin into four-digit territory for the first time in its history, hitting a high of almost $1,200 by December 2013.

Villaverde then pointed to an identical occurrence in 2015 when Bitcoin price notched $500 in November only to be followed by a sharp 40% sell-off to $300 a week later.

Will Bitcoin Pull Off a ‘Three-Peat’?

Naturally, investors will be concerned about whether history will repeat itself and the phrase “past performance is not indicative of future results” comes to mind.

Villaverde addresses this valid concern by pointing out that that Bitcoin’s fundamentals have improved significantly over the past year and the fact that Bitcoin usage is near all-time highs, with daily transaction volumes nearly reaching levels not seen since late 2017 is encouraging.

According to him, Bitcoin’s 24-hour transaction volume recently reached a 2019 high of 450,000 and the previous all-time high occurred on December 13, 2017, just a few days before prices reached $20,000.

Weiss also pointed out that Bitcoin network fees remain at their lowest levels since August 2017 despite the consistent increase in transaction volume. Villaverde explained that there is a negative correlation between usage and fees and this is proof that upgrades like SegWit and the Lightning Network were paramount in making this possible.

Overall Villaverde encouraged investors to focus on the positives and reiterated that: the recent major rally confirmed the beginning of a bull market, Bitcoin’s fundamentals have improved the point of supporting increasing price and he cautioned investors to be attentive of an impending sharp correction, which could provide a fantastic purchasing opportunity.

Do you agree with Weiss Ratings advice to buy the next Bitcoin dip? Share your thoughts in the comments below! 


Images via TradingView.com, Twitter, Shutterstock

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10 Fintech Leaders Predict Bitcoin to End 2019 Above $9,500

Ten prominent fintech experts shared their bitcoin price predictions and all agreed that BTC would close 2019 above $9,500, according to Finder.com.


Experts Expect a Bull Market

The US-based comparison website surveyed 10 fintech leaders on their thoughts and projections on 13 cryptocurrencies (including the top-10 by market capitalization) and the participants included executives from BitBull Capital, Arca, and Blocktoken.

The participants were most optimistic about EOS, Binance Coin and Tron as each was forecast to gain 727%, 459%, and 449%, respectively.

When asked whether the current climate is ideal for the average person to invest in cryptocurrency, 5 out of 10 executives agreed that now is a good time to allocate a small portion of portfolio funds to digital assets. 4 survey participants also said that they believe Bitcoin will surpass its $20,000 all-time high during the next bull-run.

50% of the participants believe that the next uptrend will end just like the one in 2017. But while the majority of the participants expected Bitcoin to eventually cool off from its recent parabolic run, the general consensus was Bitcoin would exceed $9,659 by the end of 2019.

Analyst and participant Joe Raczynski said that:

We are entering a new period with Bitcoin. Many of the institutional players have said they are done with this experiment (publicly), which may be the case [but] I think privately, some other hedge funds and other institutions will continue to invest during this lower period.

Altcoins to Outperform Bitcoin in 2019

Surprisingly, Blockchain Capital partner Jimmy Song expects Bitcoin to close 2019 at $5,901 and Song explained that there seems to be some daylight between Bitcoin and other cryptos.

Bitcoin will start being seen as a different asset than all the others,” he said.

Meanwhile, Bitbull Capital’s Sarah Bergstrand said that she expects bitcoin price to “bounce between $3,000 and $5,000 for the next few months.”

The survey results also show that the majority of participants think Cardano (ADA) will wrap up 2019 at $0.14 and the group was fairly optimistic about EOS.

Brenden Markey-Towler from RMIT Blockchain Innovation Hub predicting that

….as EOS transitions with NEO and Ethereum to next-generation consensus algorithms, I suspect their scope as an institutional technology will increase, and their value with it.

Stellar Lumens (XRP) is expected to reach $0.18 by year-end and the group optimistically forecasts that TRON and XRP will close the year at $0.15 and $0.44.

Finder has held its Bitcoin Predictions Panel since January 2018 and interested investors can find the details of each monthly survey here.

Do you agree with these bitcoin price predictions? Share your thoughts in the comments below! 


Images via TradingView.com, Twitter, Shutterstock

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Bitcoin is Front Running Stock to Flow Price Model at $7300

Despite dropping by about $1,000, Bitcoin is still way ahead of even some of the most optimistic price projections and detailed price forecast models. Here is a look at how Friday’s ‘flash crash’ hasn’t derailed Bitcoin in the long term.


Current Bitcoin Price Still Leads $1 Million S2F Model

Tweeting on Saturday (May 18, 2019) Bitcoin analyst “planB” showed how even at $7,300, BTC still leads the stock-to-flow (S2F) model about $1,000 on the road to hitting $1 million per coin.

PlanB’s S2F model posits that scarcity and value have a direct relationship with scarcity being a measure of stock flow (SF). The analysis also takes into consideration important parameters like Bitcoin block reward halving which occurs every four years until all 21 million BTC are mined.

According to the model, by the time of the next halving which is in May 2020, BTC’s SF should double from its current value of 25 to 50. This doubling would bring BTC’s SF closer to that of commodities like gold.

BTC permabulls like Max Keiser say Bitcoin has the potential to reach a fraction of the gold market capitalization, which is somewhere in around $8 trillion. The S2F model predicts that by 2020, BTC should have a market price of $55,000 based on an SF value of 50.

S2F hinges heavily on scarcity which for BTC takes on another dimension given that a portion of the 21 million total token supply isn’t even attainable since some BTC are forever lost.

Data from BitInfoCharts shows that there are about 16.82 million BTC held in dormant Bitcoin addresses. Between cumulated BTC dust and lost private keys, there are about 10.5 million BTC that haven’t moved in over a year.

16 Million Bitcoin Likely Lost

Perfect Pullback?

Before the Friday price drop, there had been the talk of a possible retracement in the BTC price action to the mid-$6,000 level. These predictions hinged on massive profit taking above $7,000, creating another entry point for a new BTC accumulation in preparation for a fresh upward swing.

In the short-term, there is an expectation that BTC might slip further downwards perhaps to the 50-day or 200-day moving average support levels. This puts a possible downward slide between $4,500 and $5,500.

However, such a move would mean breaking the $6,400 support level which characterized BTC trading for most of 2018. Only the fallout from the Bitcoin Cash civil war in November 2018 successfully took BTC below that price level.

Do you think the flash crash adversely affected Bitcoin’s parabolic advance? Let us know in the comments below.


Images via Twitter @100trillionUSD and BitInfoCharts.com, Shutterstock

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