Cloud Hosting

Bitcoin's boom may just be starting.

The cryptocurrency's comeback could go exponential next year, two traders said Tuesday after bitcoin broke above $19,000 and rallied nearly 3.5%, closing in on its 2017 record highs.

The popular trade lost steam later in the week, falling nearly 12% since Wednesday to around$16,855.00as of Friday morning, according to CoinMetrics.

Bitcoin is still up around 136% year to date, buoyed by bullish sentiment tied in part to fintech companies including PayPal and Square getting into crypto.

"It's hard to give bitcoin an intrinsic fundamental value because there's pretty much a finite supply," Todd Gordon, founder of TradingAnalysis.com, told CNBC's "Trading Nation" on Tuesday.

Only 21 million bitcoins will ever be produced.

To try and see where the trade could be headed, Gordon used a concept known as the Elliott wave theory.

"It's a wonderful way to value crypto because Elliott wave is meant to detect the herding mentality and the emotions driving the price fear and greed and it creates very recognizable patterns," he said, turning to a chart of bitcoin.

"The Elliott wave theory is based on the idea that there's five waves in a primary trend, three [up]trends and two intervening corrections," Gordon said.

The first wave higher occurred in 2014, followed by a decline into 2015 and a long-term uptrend through 2018, Gordon said. The fourth wave has formed "sort of a sideways triangle" over the course of the last two years, and the fifth could be bitcoin's latest wave higher, the trader said.

"The point of all this is a reliable relationship in the Elliott wave theory is the percent distance traveled in that first wave in 2014 is often equal to the percent change in wave five," Gordon said.

Seeing as the first wave was a roughly 658% rally, Gordon's target was a lofty one.

"I can't believe I'm going to go out on CNBC and say this, but it's about 74,000," he said. "The Elliott wave goes very well with Fibonacci multiples. If it does want to fall short, it can go to 61% of that target, which is only at 34,000."

Bitcoin could potentially be the Tesla of 2021.

Mark Tepper

president and CEO, Strategic Wealth Partners

Another trader saw even loftier heights ahead for the crypto play.

"I've always had to own some," Mark Tepper, president and CEO of Strategic Wealth Partners, said in the same "Trading Nation" interview.

"It's like a FOMO concept for me," he said. "If I never owned any and bitcoin hits 100,000 per coin, I'd probably cry myself to sleep every night for the rest of my life."

Until recently, Tepper treated bitcoin like any other speculative investment, owning a small enough amount that it wouldn't tank his portfolio if the trade went south. But that changed when PayPal and other companies started to dip their toes in the space, he said.

"The thing that's always held me back from being an outright bitcoin bull has really been this lack of widespread adoption. But ... adoption's happening and those users, those PayPal and Square users, they're buying more bitcoin than what's actually hitting the market on a daily basis," Tepper said.

"You can kind of compare this to Tesla," he said. "Tesla's up over 500% this year. In my opinion ... I think bitcoin could potentially be the Tesla of 2021. It could, in my most bullish case possible, get to 100K by the end of next year. That'd be my bull case. I think my base case is a little closer to it doubling up to about 40K by the end of 2021."

Disclosure: Gordon and Tepper own bitcoin.

Disclaimer

Read this article:
Bitcoin loses steam after nearing all-time highs, but trader says it could be on track to $74,000 - CNBC

studioEAST | Getty Images

LONDON Bitcoin has plunged by close to $3,000 in less than 24 hours after hitting highs not seen since the end of 2017.

The price of bitcoin was trading at $19,374 at 1:45 p.m. London time Wednesday when it began its slide. The losses accelerated overnight, with the price falling from $18,824 at 2 a.m. Thursday to $16,857 by 9 a.m., according to data from industry site CoinDesk.

Bitcoin has been on a tear in 2020, skyrocketing over 150% in a jump crypto enthusiasts have credited to unprecedented monetary and fiscal stimulus in response to the Covid-19 crisis, as well as interest from big-name investors such as Paul Tudor Jones and Stanley Druckenmiller.

The latest tumble comes as many predicted the cryptocurrency would soon hit an all-time high of $20,000.

AntoniTrenchev, a managing partner and co-founder of Nexo, which bills itself as the world's biggest crypto lender, said he expects bitcoin to rally well into the $20,000s and beyond.

"Long term I don't see anythingderailing Bitcoin's irrevocable rise higher," said Trenchev. "That doesn't mean we won't have pullbacks along the way. Look what happened in March; Bitcoin plunged 40% in one day during the coronavirus market panic. 20-30% falls can and should be expected."

He added: "Any healthy market needs to have pullbacks and periods of consolidation. Already in 2020 we've seen a gain of 160%."

Bitcoin peaked at $19,783 in December 2017. After hitting that milestone, the bubble burst and bitcoin plummeted to $3,122 the following year.

It climbed past $15,000 on Nov. 5, $18,000 on Nov. 19, and $19,000 on Nov. 24.

Bitcoin's market value which is calculated by multiplying the total number ofbitcoins in circulation by theprice now stands at $315.3 billion, down from $355.9 billion on Tuesday, according to CoinDesk.

CNBC's Ryan Browne contributed to this story.

Read more:
Bitcoin plunges by nearly $3,000 after closing in on its all-time record - CNBC

This entire article is Saifedeans fault.

Saifedean Ammous, author of The Bitcoin Standard, kept heaping steak tartare onto my plate at a Bitcoin meetup back in August 2018, in between jokes about liberal plebs.

As the youngest woman in the room, per usual, I wanted acceptance from the Bitcoin clan. Despite nearly a decade of (fickle) vegetarianism, I accepted the authors meat offerings in exchange for an off-the-record interview. I torpedoed questions his way between bites. Ammous told me last week, via direct message, that he couldnt remember if that was his first public steak dinner. But there would be many that followed.

Long before he became a bitcoiner, Ammous was a carnivore.

I was, independently, into low-carb keto, he said, referring to ketogenic diets. These two things started to merge together more and more as people who were interested in Austrian economics became interested in meat and good food.

Over the past decade, bitcoin-themed steak dinners have become a global ritual, hosted by communities from San Francisco to Tokyo. It was the Kraken exchanges Bitcoin evangelist Pierre Rochard who organized most of Ammous steak-and-bitcoin dinners in New York, inviting friends from the Socratic Seminar meetup. This was all pre-COVID, of course. (These days, there are a few outdoor gatherings at beaches and parks.)

I was traveling to the U.S. and Pierre told me to stop by in New York and hed organize a dinner for me. Then 70 people showed up, Ammous said. After that, everyone on Twitter was constantly asking, and demanding, their own steak dinner in their own hometown.

Becoming a Bitcoin-carnivore evangelist

Since then, Ammous organized Bitcoin-themed dinners in more than a dozen cities, including Hong Kong, Amman, Beirut, London, Madrid and Milan. Meanwhile, hundreds of Bitcoin fans routinely post meaty food porn via Twitter and Telegram groups like Citadel Chefs. Like Ammous, they often profess theynaturally found this a hobbyist combination, rather than following a demographic trend. As Crypto Twitter icon @cryptomedici wrote: I dont follow the chad lifestyle, the chad lifestyle follows me.

Ammous is among the most famous carnivore evangelists tweeting hot pics of fatty steaks, his version of thirst traps. In fact, the prolific economist penned a manifesto for grilling steak to beat fiat food, equating empty carb calories with inflationary government-issued money.

The (tongue-in-cheek) narrative says bitcoiners like Ammous will simply avoid the impending collapse of Western civilization by re-inventing feudalism, as lords of private citadel meat-lockers paid for with the worlds hardest money. Loving meat is a part of some bitcoiners shtick, along with hating journalists and socialism. Memes and jokes abound comparing Soy Boy or vegan token fans to hyper-masculine bitcoiners.

Its very masculine to grill. In the Wild West, the cowboys are always seen having this massive steak, nutritionist Lorraine Kearney said in a phone interview. Especially if theyre trying to lift weights and bulk up, its always about eating more protein.

Back in 2018, I told Ammous Id try carnivory, if only to gloat when my body didnt magically transform into a lean, mean hodling machine. To my great dismay, two weeks of a 90% meat diet left me feeling stronger, more energetic and less emotionally volatile than Id ever been. By the third week I stopped craving sweets and my doctor noticed a significant improvement in my health, compared to my last annual physical.

As it turns out, Im hardly the first liberal woman to fall in love with both bitcoin and grilled flesh. To the contrary, author Amber OHearn was one of the most influential authors in the early days of crypto-carnivory. Shes been writing about her keto diet experiments for nearly a decade.

Im off all medications, OHearn said, describing how this diet helped after her bipolar diagnosis. Ive never had symptoms of the mood disorder again.

Like any crypto trend, believers can seem quite fanatic. Zcash co-founder Zooko Wilcox even tweeted that keto diets can help treat cancer. (Wilcox and OHearn were once married, but have since continued their meat evangelism separately.)

On the other hand, Kearney said high amounts of fat can contribute to issues like heart disease. Bitcoin-carnivores often dismiss this warning as fake news by the media-fiat-food-industrial complex, hell-bent on brainwashing the masses. Of course, every citadel-dwelling hero needs a mainstream elite villain to foil his own righteousness. However, the reality of carnivore diets may be more nuanced.

Plant-eaters clap back

Kearney agreed with OHearn, broadly speaking, that high-protein diets can be very healthy and every persons body is different.

The nutritionist said shes known clients who feel amazing after years of only eating animal protein, while others prefer low-carb diets with diverse plants. She added that grass-fed meat has many more nutrients, so results may depend on the quality of the ingredients.

The carnivore diet has been around for a number of years. But the research will take a decade, if not longer, to provide the benefits of such diets, Kearney said. When people remove inflammatory, highly processed foods and introduce a more natural diet, like with meat, theyll see results like a decrease in weight gain and bloating, less fatigue and better gut health.

There may also be some truth to the bitcoiner mantra that established norms were based on inaccurate science. Kearney said the past four decades saw a massive shift among nutritionists.

Some of the products they used to recommend were processed foods it was all about restricting calories, Kearney said. Now its more about focusing on balance and understanding the psychological aspects as well.

There are also plenty of vegan bitcoiners, from Bitcoin Core developer Matt Corrallo to Lightning Labs CEO Elizabeth Stark.

Bitcoin doesnt care what you eat, Stark said in a direct message.

The steak-loving author of Bitcoin: Sovereignty Through Mathematics, Knut Svanholm, agreed with Stark.

I believe that we should probably leave diets out of any Bitcoin discussion, Svanholm said. It tends to be a bit silly and people are semi-religious when it comes to food preferences.

Thanksgiving feasts

Meanwhile, Wilcox and OHearn are among many bitcoin aficionados who ate a predominately meat dinner for Thanksgiving 2020.

I like fatty steak, roast beef, ground beef and bacon more than turkey. And thats even more true on Thanksgiving, which is a celebration of plentitude and togetherness, Wilcox said in a direct message.

For a festive twist on the holiday classics, OHearn combined turkey with a keto-friendly stuffing.

Sausage stuffing with ground pork and pork rinds, to help absorb the fat the way bread does in a stuffing, OHearn said over the phone, describing the menu. I also eat eggs and dairy without having too much of a problem. So for holidays I might have eggnog.

It was OHearn who convinced me that bitcoiners meat fetish isnt primarily the result of loud mens testosterone-induced, Freudian fixations.

There are these ideals about what a woman should be that dissuade women from taking pleasure in their bodies and being physical. Meat is connected to that, OHearn said, contradicting the diets stereotype. Meat is sexy and carnal plus, one of my primary roles as a mother is to nourish my children, inside my body, next through breast-feeding and then preparing their food and nutrients.

Like so many bitcoiners who ate Thanksgiving dinner with their families, OHearn said she was grateful for her healthy family. As for myself, I ate plenty of plants this holiday, despite knowing lean protein makes me feel better than pecan pie. Rather than travel to family, I joined an outdoor gathering of bitcoiners for turkey, my first friendsgiving as part of the clan. I no longer felt like an outsider, nor was I the sole young woman. But I did bring my own ros, because we all know the bitcoin cowboys will only bring beer and whiskey.

It may be precisely because of our differences, instead of despite them, that we were so grateful to gather with diverse friends contributing, in our own ways, to the first open-source, digital money. Especially during the pandemic, were thankful to be a part of an economic shift that just might manage to outlive our BBQ-slathered grills and little stone castles.

See original here:
Bitcoin's Carnivore Cult Is Both Stupid and Correct - CoinDesk - Coindesk