Self-Proclaimed Contrarian Investor Bashes Bitcoin Digital Gold Narrative

Bitcoin has become extremely popular in 2020, on the back of the store of value, safe haven asset, and digital gold…

Bitcoin has become extremely popular in 2020, on the back of the store of value, safe haven asset, and digital gold narratives. The digital gold story has taken center stage recently, as the precious metal’s bullish momentum fizzled out and the cryptocurrency market took off.

But one self-proclaimed contrarian investor with a focus on bullion, says that digital gold makes little sense, and compared it – ridiculously – to “digital steak.” Here’s why Simon Mikhailovich’s comparison itself doesn’t make sense.

2020: The Year Of The Bitcoin “Digital Gold” Narrative

Bitcoin was designed by Satoshi Nakamoto to share several key attributes with gold and other precious metals, chiefly, their scarce supply. The cryptocurrency creator borrowed other commodity-related concepts, such as mining.

Unique from gold, however, certain attributes of a currency were also added, such as decimal places for unit of account, and the ability to send the asset digitally.

The “digital gold” narrative that has emerged since Paul Tudor Jones said that Bitcoin could outpace the then trending shiny yellow metal, has taken the forefront and even managed to capture the imagination of high wealth investors. Many are reallocating gold into Bitcoin, for the sake of putting capital where it is expected to perform the best.

However, one self-proclaimed contrarian investor, claims that the narrative makes as much sense as a “digital steak.” Is his comment a well-done retort, or is he wrong about the rare, digital-only asset?

Contrarian Warns Of Crypto Becoming Enemy Of Fiat Currency And Governments

According to The Bullion Reserve founder Simon Mikhailovich, the Bitcoin as digital gold narrative doesn’t make sense. Or it “makes about as much sense as ‘digital steak.’”

TBR is a private bullion asset manager, so clearly Mikhailovich could be biased about the cryptocurrency that is heavily eating into his business model and revenue.

Gold is breaking down against Bitcoin, targeting another 90% fall against the cryptocurrency | Source: XAUBTC on TradingView.com

The comparison is definitely a strange one. As Bitcoin supporters swarmed the investor on Twitter, he began to add more insight to his thought process.

Approached with sarcasm, some users questioned if he was this skeptical over “digital mail” – a nod to the fact there was once a time when pundits thought email was unnecessary. He said in that case, emails transfer information and not actual paper, referencing fiat money and ignoring the fact that paper money gets digitally transferred endlessly all day long via debit cards, PayPal, Venmo, and more.

He also explained, that “throughout history, private challenges to sovereign currencies have been deemed an existential threat to sovereign power and treated as such. “Everyone can draw their own conclusions,” he added.

There is always a chance that governments could view it as a threat, but the asset was made to be decentralized and operate outside of the reach of state actors. And the argument is weak from someone who knows gold well enough to be aware that US citizens were once banned from holding the precious metal under Executive Order 6102, and could just as easily be at risk.

The only reason why Bitcoin would be targeted by the government when gold hasn’t in decades would be due to the cryptocurrency being viewed as much more dangerous of a threat to fiat currencies that are used to control the world.

But any government banning BTC would be at risk of a catch 22 like situation. Being the odd man out could let other countries garner a larger share of the limited supply, leaving whatever nations late to catch on at a disadvantage if it becomes the global reserve currency.

The analogy about digital steak is incredibly poor, but email is the ideal example. The best technologies are the ones you don’t need until they become commonplace, but once they are, they become everyday staples.

So perhaps the digital gold narrative is wrong, but solely due to the fact that nicknaming it after the precious metal, despite decades of the gold standard, would be selling the cryptocurrency a few coins short.

Featured image from Deposit Photos, Charts from TradingView.com

Analyst: XRP Likely to Explode to $0.75 as Market-Wide Momentum Returns

XRP has been facing some intense turbulence throughout the past few weeks, but the cryptocurrency is now facing some intense consolidation…

XRP has been facing some intense turbulence throughout the past few weeks, but the cryptocurrency is now facing some intense consolidation as analysts await more insights into where the rest of the market will trend in the days and weeks ahead.

The resistance that the cryptocurrency faces within the mid-to-upper $0.60 region is quite intense and may continue hampering its price action in the near-term.

Until there’s a second wave of buying pressure that causes “legacy altcoins” like XRP to rally higher, the cryptocurrency may continue extending this bout of sideways trading,

One trader explained in a recent tweet that he is watching for the cryptocurrency to see some massive momentum in the near-term, noting that the upcoming airdrop that XRP holders will receive could spark further momentum.

This airdrop is widely looked upon as the impetus of this entire rally that the cryptocurrency has seen, with the recent break above its multi-year range highs at $0.30 also sparking the momentum.

If the aforementioned trader’s upside target comes to fruition, then the cryptocurrency will likely revisit its recent highs in the mid-$0.70 region in the days ahead.

XRP Continues Consolidating as Bout of Sideways Trading Persists

At the time of writing, XRP is trading down marginally at its current price of $0.63. This is around where it has been trading throughout the past few days.

The resistance just above where it is currently trading is significant and has slowed its ascent on multiple occasions throughout the past few days and weeks.

If it can regain its momentum and push higher in the near-term, there’s a strong possibility that the cryptocurrency will start the second leg of its parabolic journey higher.

Here’s Where Analysts Think It May Trend Next

One trader explained in a recent tweet that he is expecting XRP to rally higher in the days and weeks ahead as the highly anticipated airdrop approaches.

This airdrop – which will be sent to XRP holders – is widely thought to be what helped sparked this entire move higher, which means that it could continue being a bullish catalyst.

He believes that a move up towards the $0.70 region is imminent in the near-term.

“XRP: Pretty sure this does something freaky leading up to airdrop. Still a complete shitter though.”

Image Courtesy of Loma. Source: XRPUSD on TradingView.

Where the entire market trends in the mid-term will depend entirely upon the rest of the market, as any strength or weakness amongst Bitcoin and Ethereum will sway XRP’s price action.

Featured image from Unsplash.
Charts from TradingView.

Why New Bitcoin Investors Shouldn’t Be Deterred By The Scarce BTC Supply

Bitcoin has recently caught fire with institutions, corporations, and hedge funds in 2020, as a defensive strategy to protect wealth against…

Bitcoin has recently caught fire with institutions, corporations, and hedge funds in 2020, as a defensive strategy to protect wealth against the non-stop money printing press that was turned on after Black Thursday.

The store of value and safe haven narrative is focused primarily on the cryptocurrency’s hard-coded scarce supply of just 21 million BTC. But a long-time crypto advocate and Fidelity Investments alum says that investors shouldn’t worry about the cost per coin due to an overall supply shortage and that because the asset is divisible the remaining units can be repriced and further split up if needed. Here’s why this sort of talk is the early signs of Bitcoin’s new narrative developing – where it becomes not only a “store of value” but a also “unit of account.”

Don’t Be Deterred By $20K Per BTC Prices Or Scarce Supply, Bitcoin Can Be “Repriced” Into Satoshi

Human brains are hard-wired to recognized and remember patterns, as well as finding the path of least resistance, reducing life’s challenges we encounter along the way and prolonging life expectancy.

These reasons are exactly why assets often trade around rounded numbers, like $10, $1,000, $10,000, and $20,000, or at repeating numbers like $18,888 – a number you’ve likely seen flash on the price sticker recently.

As simple as it sounds, and it is, this due to how few movements of the finger it requires to place the order and how little thought goes into placing such an order.

Ever wonder why Bitcoin has now topped out twice just before $20,000? That’s because smart money takes the extra few seconds to place orders that front run rounded numbers, leaving the lazy retail investors behind who didn’t plan properly.

Bitcoin price often trades at rounded or repeating numbers  | Source: BTCUSD on TradingView.com

Humans also like to have whole numbers, and not a fraction of something, which is exactly why when Bitcoin gets this expensive, investors turn to altcoins.

However, Nic Carter, early crypto adopter and believer in Lockean property rights says that although digital scarcity is a key narrative for Bitcoin, there can never be a shortage of the ultra-rare asset. And here’s why.

It is true that only 21 million Bitcoin will ever exist, each BTC is divisible into one-hundred million “satoshi” – the smallest unit of measurement of the cryptocurrency, which translates to 0.00000001 BTC.

When or if Bitcoin becomes the global reserve currency and monetary revolution, or any such scenario where BTC becomes the primary store of value, each coin can be “repriced” further sat by sat, or even decimalized further if necessary.

In theory, even just one BTC could support an entire market, if broken down enough times, according to Carter and Bloomberg TV Editor Joe Weisenthal.

So before new investors FOMO into altcoins like the last crypto bubble, think again before you’re put off by the fact you can’t own a whole Bitcoin. What tiny fraction of BTC you can buy now, it could outperform thousands of other coins if it reaches its full potential.

The comments are especially notable, as the store of value narrative begins to take a backseat to the “unit of account” narrative that could transform the cryptocurrency from safe haven to global reserve currency over the next ten years.

Featured image from Deposit Photos, Charts from TradingView.com

Analyst: SushiSwap Token Price to Hit $9.00 Eventually as Strength Grows

Sushiswap’s governance token, called Sushi, has posted some massive gains as of late, benefiting from the inflows of capital into the…

Sushiswap’s governance token, called Sushi, has posted some massive gains as of late, benefiting from the inflows of capital into the DeFi market and regaining its hype and momentum following a partnership with Yearn.finance.

Naturally, the clout and hype surrounding the Yearn ecosystem drew massive amounts of capital towards the Sushi token, with investors sending its price rocketing higher over the past few days.

Its price is also being boosted by an influx of trading volume into the platform, which comes as users begin trading more DEX-listed tokens to maximize their gains heading as the newly formed bull run heats up.

Although SushiSwap has an embattled past, with a fraction between the founders and the community still having lasting impacts on its success, it does appear that these issues are beginning to fade into the past.

One trader is now noting that Sushi could be well-positioned to see some massive gains throughout 2021, noting that a move to $9.00 could come about in the immediate future.

Sushi Price Rockets Following Yearn Acquisition

At the time of writing, SushiSwap’s governance token’s price is trading up just under 18% at its current price of $2.26. This marks a massive surge from weekly lows of $1.40 set a handful of days ago.

The intense uptrend that has allowed the cryptocurrency to erase its recent losses came shortly after a merger & acquisition with Yearn.finance was announced.

This isn’t the only reason why its price has been ascending, however, as liquidity and trading volumes on SushiSwap’s DEX are also rapidly rising. This trend will help continue driving value to the Sushi token.

It does appear to be facing some resistance around its current price region, making a surge past $2.30 critical for it to see further upside.

Sushi’s Price Likely to See Exponential Growth in 2021: Analyst

One trader explained in a recent tweet that he believes Sushi’s price will rocket towards $9.00 in the coming months.

He even goes so far as to call it one of his “top 3 alts for 2021.”

“SUSHI: This is one of my top 3 alts for 2021. Been accumulating heavily since $1.90ish. I expect this to hit $9 sooner or later,” he said while pointing to the below chart.

Image Courtesy of Altcoin Psycho. Source: SUSHIUSD on TradingView.

Unless there’s a shift in the DeFi trend or in the strength seen by the aggregated market, there’s a strong possibility that SushiSwap’s token, and other DeFi tokens, will continue rallying higher.

Featured image from Unsplash.
Charts from TradingView.

This Economic Model Predicts a $200,000+ Bitcoin Price by 2022

Bitcoin has been on a wild ride throughout the past few days, with bulls sending the cryptocurrency rocketing up to fresh…

Bitcoin has been on a wild ride throughout the past few days, with bulls sending the cryptocurrency rocketing up to fresh all-time highs yesterday around $19,800 before losing their strength and succumbing to bears.

From here, the cryptocurrency’s price saw a vicious decline that sent it all the way down to lows of $18,200. The buying pressure here was quite intense and sparked a nearly instant rebound.

It rallied as high as $19,400 this morning before facing an influx of selling pressure that slowed its ascent and caused it to see a slight retrace. Nevertheless, it has still been able to post what appears to be a “V-shaped” recovery from these lows.

Where it trends next will likely depend largely on whether or not buyers can firmly reclaim $19,000 and establish this price as a long-term bottom. If it remains stuck below here, it could see continued weakness in the days and weeks to come.

Despite this short-term turbulence, one economic model is still forecasting an incredibly bullish year for the benchmark cryptocurrency.

The on-chain analyst who developed the metrics that this model is premised upon concluded in a recent tweet that $200,000 per Bitcoin by the end of 2021 is a “conservative” prediction and that it could rally even higher.

Bitcoin Rebounds from Overnight Lows, But Bulls Lose Momentum

At the time of writing, Bitcoin is trading down just over 4% at its current price of $18,920. This marks a notable rebound from its overnight lows of $18,200 set following the recent rejection at $19,800.

From here, the crypto rallied as high as $19,400 before bulls lost their steam and the crypto’s price broke back below $19,000.

Where it trends next will likely depend fully on its continued reaction to this key level.

Economic Model Forecasts a 10x BTC Price Rise in 2021

One respected on-chain analyst explained in a recent tweet that one of his economic models predicts that Bitcoin is about to see some massive momentum.

He is now pointing to one of his economic models, which forecasts that Bitcoin could be trading between $200,000 and $300,000 by the end of 2021.

“Views on 2021: My Top Model suggesting $200k per BTC by end of 2021 looks conservative, $300k not out of the question. The current market on average paid $7456 for their coins.”

Image Courtesy of Willy Woo.

This prediction does seem to be a bit far-fetched, but if Bitcoin breaks above its all-time highs and sees price action similar to that seen during previous bouts of price discovery, a six-figure BTC could be right around the corner.

Featured image from Unsplash.
Price data from TradingView.

From FOMO To Overbought: Why Bitcoin Is Overdue For A Steep Correction

FOMO has returned to the crypto market in a major way, now that Bitcoin has set a new all-time high price…

FOMO has returned to the crypto market in a major way, now that Bitcoin has set a new all-time high price record.

But as more buyers pile in after an already nearly 200% rally in 2020, indicators are reaching extreme readings of overbought conditions, that nearly every time in the past has resulted in a strong correction. Here’s why this time won’t be different, and why the leading cryptocurrency by market cap is overdue for a steep correction.

FOMO Reaches Frenzy Level As Bitcoin Sets New All-Time High

Bitcoin is now back on nearly everyone’s radar. The cryptocurrency is making headlines on mainstream media outlets everywhere, celebrities are getting in on the action, and institutions and hedge funds are quietly absorbing as much of the supply as they can.

“Smart money” has been loading up on Bitcoin over the last two to three years of bear market and holding for the eventual post-halving bull run that’s long been anticipated.

BTC moving off of exchanges post-Black Thursday was the first sign markup was coming, and once $10,000 was taken out, the trend picked up in steam. From the retest of $10,000 to nearly $20,000 took only three full months, leaving a trail of thirteen consecutive green three-day candles behind.

Even retail FOMO has begun to return crypto, but all the buying has resulted in extremely overbought conditions, according to the Relative Strength Index.

Bear market corrections when the RSI becomes so overbought result in an average drop of over 50% | Source: BTCUSD on TradingView.com

Relative Strength Index: Overbought Conditions Reach Extreme, Correction Always Follows

When examining the timeframe that had the most consecutive green candle closes, the three-day Relative Strength Index very clearly shows just how overbought Bitcoin is currently. It also explains why a massive correction in crypto is largely overdue.

The RSI reached such a peak at the 2017 high, resulting in an immediate 70% decline and kicked off the bear market. The indicator also became that overheated, however, in May 2019, but didn’t the cryptocurrency didn’t top out until a full five-weeks later when a bearish divergence formed.

Bitcoin price first rose another 66% before the divergence confirmed and the asset ultimately broke down, wiping out 46% from its tag.

That small snapshot of price action suggests that there are two scenarios: a sharp correction here, or another ridiculous run to $31,000 before a short-term downtrend cuts as much as 58% off current levels.

The bottom target could be as low as $8,000 in that scenario. As unlikely as it may be, the average correction from the last two bear market peaks confirms the possibility is plausible based on the data alone.

But this is now a bull market, not a bear market, and that could change things. Zooming out for a larger sample size and including the previous bull market, there were five total times the three-day chart reached such overbought conditions, and just like the bear market, each led to a correction.

Bull markets, however, only correct around 37% on average | Source: BTCUSD on TradingView.com

Four out of the five “tops” sent the leading cryptocurrency by market cap plummeting down as much as 40% at the largest of drops – nowhere nearly as devastating as bear market corrections.

The average of the bunch, suggests that the current correction could end up at roughly 37%, as other analysts have concluded based on past corrective phases.

There was one other instance where a bearish divergence formed similarly to the 2019 peak, but in the previous instance, the cryptocurrency only rallied about 30% further.

Data doesn’t lie, and this time is no different than any other situation, any other asset. The Relative Strength Index was designed to visually signal when assets have reached overbought conditions, and that is exactly the current tell.

There is no question a correction is coming, Bitcoin bull market or not. The only question is when, and according to historical recurrence, the probabilities of the top already being in are high – but a divergence and another $10,000 move isn’t outside the realm of possibility.

Because of what’s at stake – potentially a rise or fall of roughly 50% – get ready for an unpredictable, wild ride where the outcome no matter what is a correction eventually.

Featured image from Deposit Photos, Charts from TradingView.com