171113 Bitcoin’s Next Milestone

MilestonesBitcoin roars back to life after a tumultuous weekend where prices dropped from last Wednesday’s high of over $7800 to this weekend’s low of $5414, a 33% fall. Ouch!  The Bitcoin Gold fork is now behind us.  The Bitcoin Segwit2X fork has been canceled.  Bitcoin Cash struggles to remain afloat after a huge uptick this weekend.  In it’s rise to legitimacy and value, Bitcoin must reach some new milestones before its next leg up.

In the world of patents, inventors know that a patent isn’t worth nearly as much when you first are awarded the patent as when you have won in court against a patent challenger.  As Bitcoin matures with age, as these different challenges come to pass, as Bitcoin expands its use cases and market cap, it becomes more and more a fact of life and less a matter of speculation.  Every day that goes by makes Bitcoin a better investment.  Every challenge it weathers strengthens Bitcoin’s ability to stay.

There was some disturbing information regarding Bitcoin’s use cases.  It seems that after an entire year, Bitcoin’s use cases have not increased.  The only increase has been in speculative Bitcoin investments.  From personal experience, that feels about right.  While there is little information about new uses for Bitcoin, there are thousands of new Bitcoin owners hoping to profit from the investment opportunity.  There have been some very good ideas circulated regarding Bitcoin uses, however.  For example, sending money abroad, safely and fast.  People from Venezuela have been using Bitcoin to send money home without fees or the hassle of VISA or Mastercard.  The people of Catalonia, looking for a new currency in their fight for freedom from Spain, may adopt Bitcoin as their currency.  These would be huge boosts to Bitcoin’s viability.

Here are three milestones we should be on the lookout for. Anyone of these would be a home run.


  1. Any of the big banks such as Goldman Sachs, Bank of America, or Morgan-Chase accepting Bitcoin to buy, hold and sell for their customers.  That would signify a huge influx of big investor dollars into Bitcoin. Every billion dollars increases the price of Bitcoin by $60.00.  A big bank coming into the Bitcoin market would lead, at a minimum, some $40B into the Bitcoin market.  That would raise the price of Bitcoin by $2400.00.
  2. Any large retailer announcing that they now accept Bitcoin payments such as Starbucks, Subway, or Amazon online.  That would be huge.  Some exchanges have already started offering Merchant services; that is to say, provide resources that a merchant would seek were they to begin accepting Bitcoin.  For example, any merchant that would not want to become a speculator in Bitcoin would want to accept it and sell the Bitcoin without holding onto it for any length of time. Exchanges are offering merchants the ability to convert Bitcoin as soon as it is received.
  3. A country or region switches from their local currency to Bitcoin, e.g. Catalonia or Venezuela.  Even Catalonia which only represents about 20% of the Spanish economy would generate $200B in GDP.  If Bitcoin were used to represent that economy, the market cap for Bitcoin would rise considerably.

Anything that expands the uses of Bitcoin is a good sign.  We continue to publish Bitcoin application ideas in the hopes of fostering new and exciting Bitcoin opportunities.


171003 Goldman Sachs Said to Be Exploring Bitcoin

Bloomberg, yesterday published the first mention of Goldman Sachs exploring how they might venture into the world of cryptocurrency.  This is good news for Bitcoin.  Unlike JP Morgan Chase’s Jamie Dimon’s strategy to demonize Bitcoin as company policy, Goldman Sachs is looking for ways to service customers who wish to trade Bitcoin.  It seems from news reports that JP Morgan Chase customers have already been trading Bitcoin.

The market cap for Bitcoin is $70B with 16M active Bitcoins. If Goldman Sachs customers were to bring one billion dollars into the Bitcoin marketplace, that would raise the price per individual Bitcoin $63.00.  Imagine if another ten brokerages brought their customers into Bitcoin following Goldman Sachs over the next year and another $40B entered into the Bitcoin marketplace.  That would raise the per Bitcoin price by $2409.  At today’s price of $4246, Bitcoin would trade at $6655. Not bad for a year’s appreciation.