Veteran Trader: Bitcoin To The Moon Makes Sense But Is It Living Up To Its High Expectations?
With crypto enthusiasts, there are usually hardcore believers or extreme haters with no in-between. This is why, when veteran trader Peter Brandt, who has been bullish on Bitcoin projecting $50,000 in the coming years predicted BTC falling to $0 didn’t sit well with the community.
“I understand the bullish narrative for BTC relative to the: Fables of the Feds and their Frivolous Fiats. The argument for the moon makes sense,” said Brandt.
“My only question is whether Bitcoin is actually living up to its high expectations. This question does NOT make me a hater.”
And this time, the community was happy to oblige with why it’s a “trojan horse.”
“the market needs speculators & risk appetite to discount BTC’s future as digital gold. It's presently too volatile to be an effective store of value but its maturing & getting there.”
It’s all about halving and mining?
“Miners produce $500m of potential fiat out/month. Exchange volume is short term churn, day trading, bots & fake volume. Intermediate & long term trend moves on net fiat in & out of the system,” he said.
Besides “Be patient. These things take time,” of Dan Held, Director of Business Development at cryptocurrency exchange Kraken, the crypto community is about the upcoming halving and mining costs.
“This is all about the price of an asset as measured against fiat. And BTC has a grand story to be told,” said Brandt himself.
We are just getting started!
The popular scarcity-based stock-to-flow model that bitcoin has been following throughout its history lays down how the digital asset will surpass gold’s SF ratio this halving, making it scarcer than the precious metal fueling its price.
“The “store of value” premise – I can accept this,” said Brandt only to question the percentage of global commerce actually conducted through cryptos and multinational corporations foreign BTC products.
As we reported, the legendary Renaissance Technologies’ flagship hedge fund Medallion is the latest one to jump into Bitcoin futures trading. Already, we have ICE-backed Bakkt, Fidelity, TD Ameritrade, and others working on crypto.
But, overall as Brandt himself said, “The BTC technology is so solid,” and we are just getting started.