Bitcoin in November, where are we going ?

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Bitcoin, something from the past ?

I know we have been waiting a very long time to see some action in the Bitcoin charts. And although the drop on Monday is not the one we properly want to see, it is something that can give us some signals. So let’s have a look at what is Bitcoin’s position right now in our society.

In 2017 we have seen a massive bull run till the end of December. A lot of people where talking about it, properly even the mother of your colleagues. But what backing up the value of Bitcoin back then ?

The answer is : Nothing! It was pure speculation and there was no foundation. The idea became mainstream and in my opinion the idea of trading became more mainstream then the technology behind it.

Who was buying Bitcoin back in 2017 ?

It was mainly the retail sector. It is always the retail sector who buys in early and late. In between comes the so called “smart money”. In June 2017 the word ‘Bitcoin’ on the street became more popular and people start to see the possibilities it was carrying. After that followed a 6 month bull-run with mainly people FOMO-ing in. At the top of December when we have reached the 20.000$ levels the people who recognized it was pure speculation sold their BTC’s and made good profits.┬áThe people who where FOMO-ing inside where still hoping the price will continue to rise and eventually lost a big amount of their capital.

Bitcoins interest declined

The past year we have seen a long period of price declining as well as the decline of interest. If you have a look at the Google trends results you can see that Bitcoins interest declined with 90%.

Bitcoin google trends
Google trends

But this interest decline mainly happened in the retail sector, so actually “on the streets”.
Because in the background we have seen bigger corporations already implementing blockchain technology into their businesses and show their interest by investing.

Who is investing in 2018 ?

NYSE, the world’s biggest stock exchange is launching BAKKT. Offering crypto assets to all of their investors.

For example Steve Wozniak, the co-founder of Apple has co-founded a blockchain investment firm where they scout new “tech stars”. It is the first company Steve is active in again since he left Apple.

Billionaire and hedge funds manager George Soros talked Bitcoin down just to buy in at the 6000$ levels.

Swensen, who manages Yale’s $29.4 billion endowment, has invested $400 million into crypto assets.

This is not the retail sector who is buying themselves into Bitcoin. It’s the institutions, and that is just the start. Because next to institutional money we actually have real working products that are being used by blockchain companies.

Who is using blockchain technology ?

Brendan Eich, creator of Javascript and the Mozilla foundation launched BRAVE browser. A blockchain based browser with built in ad-blocker and advertisement system to reward publishers through their own currency.

The GET Protocol offers a blockchain-based smart ticketing solution. They already have 1 million tickets in the cue to be sold.

A company who offers to share, buy and sell mobile data called DENT has over 5 million users right now.

Conclusion

Although it looks like the Bitcoin’s price keeps declining a lot of things are happening. This is the first time in history we actually have real-world value backing Bitcoin. From real products on the market with usage to big players who are joining the table.

In the coming months we will see a big increase in the exposure of Bitcoin and blockchain technology. Compared to the last bull run we have a lot of fundamentals which we hadn’t back then.

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