We read it in the news almost weekly. Some analyst from a major institution warns of crypto volatility and the demise of Bitcoin. For example – in September of 2017, JPMorgan CEO Jamie Dimon was quoted as saying that Bitcoin is a fraud and will blow up. Dimon said he would “fire in a second” any JPMorgan trader who was trading Bitcoing noting two reasons: “It’s against our rules and they are stupid.” (Data Credit: CNBC). But – it was later revealed that Jamie Dimon had been having secret meetings with the leaders of CoinBase – awfully strange for someone so devoutly against cryptocurrency and Bitcoin.
There are many other instances of this. Some may call it “market manipulation” – releasing reports shedding a negative light on Bitcoin and cryptocurrency, while using any associated price drops as buying opportunities. Fortunately for us – we’re on to them, and the sheer scale that big businesses are getting in on crypto surprises even us.
Square, Microstrategy, Tesla, MassMutual, Stone Ridge – these are billion+ dollar companies – and they all have put significant money into the purchase of Bitcoin. Morgan Stanley purchased almost 29,000 shares of the Grayscale Bitcoin Trust. JP Morgan signed Gemini and Coinbase.
Bitcoin Treasuries tracks major Bitcoin purchases and holders through their SEC filings and various financial reports. The government of Bulgaria owns 213,519 Bitcoins currently. Grayscale owns 654,885 Bitcoins (see – transparency on the Blockchain makes things like this possible!).
BlackRock FInancial, the LARGEST asset manager in the world (Over $9.5 trillion in assets under management) owns 14.5% of Microstrategy, who itself owns almost $5billion in Bitcoin.
I think you get the picture. These are not “dumb” people. These are the titans of industry. CEO’s that make tens of millions of dollars per year in salary are behind crypto. Yet many people still don’t think “crypto is real”. And why?
“China Bans Crypto”
“Tesla sold Bitcoin”
Articles like this one (from the Motley Fool):
That one made me chuckle because… well here’s the market cap of the crypto industry from August until last week:
That didn’t age well.
Look – there’s no denying that when crypto moves… it MOVES – both upwards and downwards. But – everytime someone reports something negative about crypto, the big money gobbles up the dips. Even in a bear market these investors are hardened and take advantage of dollar cost averaging. During the big crash in May this year we saw two separate $1Billion crypto purchases by single entities. These purchases can be seen in on chain data, which is available for all to see. We don’t yet know who did it, but it’s pretty telling. Billionaires don’t bet with billions on things they aren’t going to win with, that’s for sure.
We are seeing adoption, use cases, and projects showing up at every turn. To me – these are the market fundamentals of something primed for incredible growth. Markets themselves are cyclical, but in general, barring crazy happenings, good projects with good leadership make good profits. Major crypto projects are lead by some of the smartest people in the world.
If you see the richest people in the world buying things developed by the some of the smartest people in the world, in any other sector it would be a no-brainer to get involved. Yet somehow… crypto still has this negative stigma.
If you don’t get on the boat, it will leave without you.