A lot has happened since my last update in 2018. The price of Bitcoin has skyrocked from 3k to over 60k settling at around 50 at the present time (see chart). So what’s driving this?

1. Adoption
2. Adoption
3. Adoption

The key to cryptos staying power is its adoption – both as a means of exchange and as a store of wealth/hedge.

So where is all this adoption happening and why can’t I walk into Walmart and pay with my crypto?

The answer is complex but to put it in simple terms, if you bought a jug of milk in 2018 for $2.00 in crypto, that same amount of crypto would be worth $32 today.

So as you can see, people quickly caught on to the fact that using Crypto in the short-term as a means of exchange made far less sense then using it as a long-term investment or hedge against other investments.

So where does Bitcoin & crypto go from here? Almost certainly up as adoption continues as retail investment apps like Paypal and Robinhood make the effort as simple as buying a share in Apple.

I personally see $100k+ incoming over the next 12-18 months, but again, this is not financial advice – purely my speculation around where crypto is headed in terms of adoption.

The present US economy will peak in the next few months and individuals and institutions will be looking at more and more ways to diversify outside of traditional equities investing.

Good luck and hopefully i’ll be back with more good news sooner then 2 years.

From https://www.barchart.com/crypto/quotes/%5EBTCUSD/performance?mode=monthly

Bitcoin holders can send value across the planet without the permission of anyone. Bitcoin’s value is not reliant on anything physical anywhere, and thus can never be impeded, destroyed, or confiscated by any of the physical forces of the political or criminal worlds – @saifedean

View at Medium.com

Since beginning my foray into Cryptocurrency in earnest about 4 months ago (roughly mid-August), the price of #Bitcoin has gone from about $5500 to just over $11,000 today. I’ve consumed nearly every analysis and price prediction around #Bitcoin. From The WInklevoss twins and Mike Novogratz who see Bitcoin at $40k by the end of 2018 to Crypto pioneers like Tuur Demeester (see graphic) who see its top at $1M and beyond.

For the past several weeks, I’ve shared the story of Crytocurrency, Bitcoin and Blockchain to just about anyone who will listen to me. I posted on Twitter (@TheCryptoMann) recently that I’d have gone through 10 wives if it weren’t for the one I have who has tirelessly listened to me talk about my enthusiasm for Crytocurrency and the impact I think it will have on the world. My last bout of enthusiasm at this level was in 1991 on the emerging Internet as a tool for commerce.

In a nutshell, I think the top is endless for Bitcoin but there will be uneasy corrections along the way. Just last week we went to $11k then back to the $9’s. Regardless, I’m bullish on it to the point where I’d say $40k is entirely within range and that the global financial markets and financial manipulators are really starting to take notice. Shoot, even the Whitehouse press secretary commented on it this week.

I thought in this post I might share the most common questions I’ve been asked over the past few weeks;

1. Is it too late to get in
2. How do you even buy Bitcoins
3. If I put $1000 in today, what do you think it will be worth a year from now.
4. What backs a digital currency
5. How are digital coins like Bitcoin created
6. Can Bitcoin be used for charity and tithing
7. What is the highest price you see Bitcoin going to
8. There are a bunch of different types of coins, which one(s) are the right one(s)
9. What can you even buy with Bitcoin

1. Is it too late to get in?

Of course not. At $11k, if this thing even goes to $20k conservatively, you will nearly double your money. You can buy fractions of Bitcoins through Coinbase or Genesis. My advice to anyone who asks is to put 1-2% of your savings toward Bitcoin and 10% toward tithing. Expect your returns to be eternal and infinite :).

2. How do you even buy Bitcoins?

Digital currency is purchased in much the same way as you would exchange US Dollars for Euro’s or Yen if you were traveling abroad. You setup an account with an exchange like Coinbase or Genesis, send your desired amount of funds manually or on a scheduled basis and purchase portions your desired coin. Digital currency can be purchased in fractions so its conceivable to take $5 a week and put it into digital currency. Again, I strongly recommend Bitcoin as it is the original chain with the highest level of growh historically and the one backed up by the largest pool of institutions and talent that are connected with it.

3. If I put $1000 in today, what do you think it will be worth a year from now?

Nothing or $20k at minimum. How’s that for an answer. Obviously I can’t give investment advice but I can tell you that at a conservative level of 1-2% of savings, most people can accumulate $1000 in crypto investment in a reasonable timeframe and I would expect it to get to $2000 without much difficulty. If you’re some of the other Bullish folks I mentioned earlier in this article, that same amount could easily be $3-5k in a year.

4. What backs digital currency?

This question is typically asked in relation to how the US Dollar is backed by the “full faith and credit of the US government”. As you probably know, the US dollar has not been backed by gold since Nixon was president so in effect, it’s backed by no more than any other financial instrument that man has invented (stocks, bonds, derivatives, money). But for a more detailed technical explanation, I found this to be as good as any.

Bitcoin boasts the economic backing of a force magnitudes more intelligent and pervasive than the promise of men and military might: an uncheatable, highly predictable, chronological supply schedule.

-Travis Patron, www.coindesk.com/forget-gold-bitcoin-is-backed-by-time

Here’s another site with a good explanation on what backs cryptocurrency.

5. How are digital coins like Bitcoin created?

Picture a vast number of computers interconnected via the Internet who are performing a complex mathematical computation and being rewarded in exchange with Bitcoins. This function is called “mining” and can be performed by anyone with appropriate hardware and can be a very rewarding method for obtaining bitcoins. Once the coins are created, they can be purchased directly or through exchanges like those mentioned previously. There is a finite number of coins mined at regular intervals through the day with the total cap of minable bitcoins equalling 21m. In this way, having a limit to the supply and a demand for its use as a currency is what creates its value.

 

6. Can Bitcoin be used for charity and tithing?

I recently asked our pastor, Adam Hamilton (@RevAdamHamilton), if our family could begin tithing in Bitcoin. While the jury is still out on that, the simple answer is OF COURSE. I believe ultimately that virtually every person and organization will have a digital wallet and be capable of sending and receiving cryptocurrency. Until then, you can easily setup a separate address (like an account) within your Coinbase or other digital wallet and transfer or store these coins for future distribution. In my case, I’m hoping our church will setup their own wallet so funds can be sent directly from my digital wallet to theirs. The added benefit in this case is a) the amounts are not taxed when converted back to US currency and b) the recipient can experience the upside of Bitcoin appreciation as the market grows.

7. What is the highest price you see Bitcoin going to?

This is one of the funnest questions I get asked because I love to see the look on peoples faces when I tell them “do you know that if only 2% of the current monies invested in stocks, bonds and other traditional savings instruments were transferred to cryptocurrency, that the price of Bitcoin would be well beyond $100k per coin”. The look on their faces when they wrap their minds around the potential is priceless. Imagine would would happen if Crypto captures 10, 20 or even 100% of individuals money holding. So the short answer, is there really is no limit. Really.

8. There are a bunch of different coins, which one(s) are right for me?

At my present level of knowledge on the Crypto space, the majority of my interest is around Bitcoin. This is somewhat idealogical because it was the original currency built on Blockchain. I also believe that the value that is presented around some of the other coins will ultimately be replaced by technology enhancements to and alongside Bitcoin itself (lower transaction costs, quicker transfer times, ability to use as a currency, etc). As these new technologies emerge, the need for altcoins like Ethereum and Litecoin will have less significance and really only serve to pull away strength from the Bitcoin core solution. So bottom line, for me, I split about 90% between Bitcoin and 10% toward alts.

9. What can you even buy with Bitcoins?

If you convert it back to fiat currency like US Dollars, today, anything you want. To purchase directly with Bitcoin is somewhat of a non-starter for me because the value is increasing so rapidly that if you bought a cup of coffee today with it for $5, the cost of that coffee might be (and likely will be) much higher in a very short period of time. I recently read a story of a kid who bought his bride-to-be a wedding ring with Bitcoin proceeds back in 2013 and in today’s Bitcoin value, that ring would be worth over a $1M. So bottom line, for me, Bitcoin is a store of value – a savings account if you will – more than a tool for buying stuff. However, if you must, there are sights that allow you to buy stuff through Amazon using Bitcoins and I hear that you can book a flight through Expedia now and pay with Bitcoin.

 

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Anyway, I hope you found this information informative and useful in your pursuit of understanding the vast benefit of Cryptocurrency and its potential as a promising investment vehicle and store of wealth for many who have found other avenues less productive.

 

 

Adding to the further legitimization and anticipated adoption of cryptocurrency, the Square payment system to begin adoption of Bitcoin. Institutional investors and pundits weighing in.

The concepts of cryptocurrency and the underlying blockchain technology can be intimidating topics.  The goal of this post is to help simplify some of the concepts and discuss how to apply the benefits of this technology to our lives.

One of the first comments I often hear when I talk about the concepts of cryptocurrency (bitcoin in particular) are that it’s associated with the “dark web” or nefarious activities of the criminal underworld or a way to buy drugs online. While all of those things are true of any currency, the ease and security at which money can move between parties can have an equally positive impact. The premises of this technology (blockchain) and its impacts on worldwide monetary systems is largely the reason for my interest in this space and for creating this blog.

In its simplest terms, cryptocurrency is electronic or digital money that is not represented in any physical form (paper bills, coins, gold, etc). When you see a picture of a bitcoin online, that’s a silly and oft confusing representation for digital assets. Bitcoins are digital money that are held in your digital wallet and functions much like your credit or debit card does by making it possible to transfer money electronically between parties to satisfy a debt or make a payment. Money held in your digital wallet increases or decreases in value as the digital currency market fluctuates (bitcoin in this case is trading today at $7200 and was trading at $700 about a year ago). The difference with cryptocurrency is that it can be transferred between parties without an intermediary (bank, clearing house, credit card company, creditor, wire transfer service, etc). This is where the blockchain technology comes in – when you want to transmit digital currency to another party (anywhere in the world btw), the blockchain performs a complex calculation to verify the transaction. This verification process assures the transaction is secure, trusted and permanent. I’ll spare you the technical details but the concept of the blockchain is as genius as the Internet and with similar implications in our lives in the coming years.

So how does this actually work? To get started, I setup an account on Coinbase.com. I linked my Bank of America account to my Coinbase account and can transmit money to/from as needed. When I transmit money to my Coinbase account, it converts it to digital currency (Bitcoin) and stores it in my digital wallet. You can buy fractional Bitcoins so in that way you can transmit any amount of $USD to BTC. When I transfer it back to my BOA account, it converts it from Bitcoin to $USD. There is a small fee associated with these transactions. In this way, my Coinbase account is no different then any other bank, savings or investment account you may have except for several key advantages;

1. I can send Bitcoins directly to any one, any where, any time night or day without any intermediary (bank, credit card, check, wire transfer, etc).
2. While stored as Bitcoins, I’ve been earning a far greater return on my money over any other investment option available any where.
3. I’m supporting adoption of a monetary system that I believe will ultimately become the worldwide standard and helps makes money and exchange possibly by nearly 4 billion people that currently don’t have access to banks.
4. It bypasses central control over our money and takes control away from central banks and traditional “fat cat” banking systems where others use our money for their gain and manipulate markets (think quantitative easing after 2008 crash, interest rate manipulation by the federal reserve, inflation, hedge funds).

Now the truth is, not very many retailers or stores accept Bitcoin as a form of payment today. That’s changing rapidly and I believe Amazon will accept Bitcoin soon. Once they do, other retailers and service suppliers will follow. But to see cryptocurrency only as a payment mechanism is really to miss the point. Its more significantly (at least today) a store of wealth (aka investment or savings account) especially for those who are willing to buy and hold and tolerate the wide swings in the price of Bitcoin as things move toward greater adoption and legitimization as a monetary tool.

Since August when I got into the space, the value of Bitcoin has gone from $5500 to as high as $8000 and is currently hovering around $7000. All indications are that it could go as high as $10k this year and into the $20k range next year. For that and long list of other reasons, I’m bullish on Bitcoin as a part of an overall investment strategy (even if only a few dollars a week or month). I would remind any one who pursues this to not put anything in that you’re not prepared to lose (as with any ‘investment’). However, the strength and appreciation of Bitcoin since its inception in 2009 should help ease concerns about it “going to zero” or drastically depreciating. Again, I believe this will become a standard international currency AND there is a mountain of Wallstreet investment capital that is on the verge of entering the space that will only drive prices higher. We’re just seeing the tip of the iceberg of the wealth acquisition that’s possible with cryptocurrency and I’m eager to share as much of this as I can for others to benefit.