Kraken manager: Bitcoin could be in a super cycle
Dan Held, Manager of US-based Kraken, one of the world’s largest exchanges, assessed Bitcoin’s recent rise. “Bitcoin may have entered a ‘super cycle’,” Held said, noting that the cycle in which the largest cryptocurrency, which set a new record on December 17 and has almost steadily risen since then, may be different.
Held’s comments, which actively use Twitter and comment on developments in the world of Bitcoin and cryptocurrency, are as follows:
Why Bitcoin may have entered a ‘super cycle’…
Obviously this period is very different: Kovid, ‘Gold 2.0’ reviews for Btc, purchases of corporate firms and now ease of use have allowed us to enter a new era. Bitcoin has broken the normal bull / bear course and I think it has entered a super cycle.
Probably most of you heard Bitcoin in 2013 or 2017. Your friends and family have been talking about high price fluctuations. Bitcoin’s market cycle is once every 4 years, and with the decrease in supply, many hypotheses state that new cycles are triggered even more every 4 years.
As supply decreases and demand increases, the price also goes up. In fact, we can call it’ Bitcoin’s viral marketing tactic/cycle’. Satoshi explains this briefly: ‘as the number of users increases, the value per coin also increases. Increasing the value attracts more new users, and this is how the loop occurs. Satoshi wrote this when the price of Bitcoin was not even $ 0.01. As you can see in the chart below, there are reward splits shown with Bitcoin price and points. As you can see, after each split, we entered a bull cycle.
But this cycle is different…
The groundwork for why bitcoin is needed has never been more solid. In fact, the narrative is one, but getting Bitcoin from anywhere for everyone has never been easier. The seeds of Bitcoin were sown in the 2008 economic crisis. It began to blossom in the great macro bull run. From 2008 to 2020, the traditional financial markets saw no recession, although they made small adjustments.
When KOVID arrived, the markets collapsed. This was Bitcoin’s first real test. Everyone says, ‘will it just be the HODLers who get Bitcoin?’he was asking. ‘Will Bitcoin go to zero while the world burns?’
Bitcoin managed to recover from this crisis, while all markets and assets were liquidated, and by the end of 2020 it had reached $ 24k and surpassed here. While Bitcoin has recovered, states around the world have minted money in unprecedented ways. When I say’ unprecedented’, I mean it in a real sense, in terms of financial history. $ 10 trillion has been minted to support the traditional financial system. This means that governments devalue their own money, which is exactly what Bitcoin was created to protect against. Most people don’t get earthquake insurance until the earthquake occurs, but then they flock to insurance companies.
Bitcoin was created specifically to store value in your hands when you can’t trust your government and bank. Periods like the 2008 financial crisis don’t happen to us much. Coronavirus has attracted the world’s attention to Bitcoin. That’s why institutions started taking him.
Corporate madness is here…
There was talk of a future of corporate interest in 2017. It wasn’t wrong, but it was early for that period. When KOVID arrived, institutions were now looking for a safe haven where they would hide their values. Objectively speaking, Bitcoin is a better value storage tool than gold… Bitcoin is a non-correlated asset in providing a risk return per unit when a portfolio is created. Today, institutions manage more than $ 100 trillion in assets.
Here are the institutions and trade legends that have stated that Bitcoin is gold 2.0 in the last 4 months alone:
- JP Morgan
- Deutsche Bank
- Bill Miller
- Mass Mutual
In 2017, comments were again made that Bitcoin was ‘Gold 2.0’, but at that time there were also many theses against it. ICOs, Ethereum being a DApp platform, Bitcoin Cash consisting of bitcoin bifurcation being cheap PayPal…
Both the DApp and ‘cheap PayPal’ narratives have failed to achieve their goals. At the moment, Bitcoin’s ‘Gold 2.0’ narrative has been left alone and is going its way. It attracts attention, it gets demand.
Also, in addition to all this, there was not much content describing bitcoin until 2017. After the 2017 bull run, there was an incredible stream of content that turned coin-lovers into Bitcoiners. Getting Bitcoin in relative terms during the 2013 and 2017 bull runs wasn’t easy either. Usually you would have to send a bank transfer and understand how the order book works. Currently, you can buy Bitcoin with your traditional brokerage firm, such as PayPal or Robinhood.
Bitcoin was created just for today. Now it is much easier to understand it and get it from various platforms.
So what if a crowd of 0.01 percent to 1 percent of the world buys Bitcoin?
What if some of the $ 100 trillion managed by institutions goes to Bitcoin to preserve value?
It’s definitely not going to go from 20 grand to 100 grand. It goes from $ 20k to $ 1 million and then experiences small cycles. Maybe this is the last big cycle…