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December 28th, 2017- In This Issue:



Earlier today I received a text asking if the bubble was bursting, I couldn't help but to be a bit taken aback by the question. B eing  that one single bitcoin is selling for $14,000  today and people are thinking the bubble has burst? Jeeze!

Indeed it has come off the high of $20,000 which we had predicted in our last newsletter. We expected that the market would trade sideways with bitcoin hitting 20k. It's done exactly what we had predicted and what's healthy for a market that's gone up over 200% in just the last 6 weeks alone.

As good as 2017 has been we think that next year is going to be an even better year with bitcoin hitting $50k-$60k before years end. Mark my words and remember where you heard it first.

As always, buy the dips, hold on to your bitcoins for as long as you can and spread the word. Tell your friends, your relatives and anyone else who will stand around long enough to listen, about Bitcoins, believe me you will be doing them a huge favor.


Visit  BitvestIRA  for information on using your IRA to invest in bitcoin at 20% below spot price. Or call us directly with any questions at 1-844-BIT-VEST (1-844-248-8378)

Bitcoin is Investopedia's Term of the Year: Surge in Demand

Bitcoin, the most valuable cryptocurrency and decentralized store of value with a $270 bln market cap, has been named Investopedia's 2017 Term of the Year.

Most popular keyword

Based on search results and volume, Bitcoin surpassed Trumpcare,  ICOBlockchain and FAANG to become the most searched and popular keyword on Investopedia, the most widely utilized online dictionary platform for financial keywords.
Emphasizing the massive  growth rate of Bitcoin in terms of price, market cap, user base, user activity and developer activity, the Investopedia team wrote:

"$8,000! $11,000! $20,000?! 2017 was the year of Bitcoin mania. The cryptocurrency started the year at $1,000 and since then, has risen more than 1,500 percent. While some say Bitcoin is a bubble, its aggressive growth has dominated the minds of the media and the financial services sector. 2017 saw the first Bitcoin billionaires as well as the introduction of Bitcoin futures. With only 1,000 users owning more than 40 percent of the currency, according to some reports, investors are carefully watching if the price will fall or continue to rally."

While Bitcoin has fallen behind Ripple, Litecoin and Ethereum by investment profitability and price growth in 2017, it has been the only cryptocurrency adopted by leading financial institutions and service providers in the traditional finance industry.
Most notably, the world's largest investment bank JPMorgan, Goldman Sachs, the global market's largest options exchange the Chicago Board Options Exchange (Cboe), CME Group, Nasdaq, the New York Stock Exchange (NYSE) and Cantor Fitzgerald have either integrated Bitcoin into their existing infrastructures or announced support for the cryptocurrency.

Adoption by leading financial firms
Goldman Sachs CEO Lloyd Blankfein, in particular, had noted that like fiat was the successor to the now-abolished gold standard, Bitcoin could become the next international standard for money. Blankfein explained that the fiat currency system was rejected by the public at first, because of its lack of base value. A five dollar bill was worth five dollars because the government claimed it was, not because it represented five dollars worth of gold.
"You move a little bit further and you get Bitcoin that is not a fiat currency so I don't trust, it and I don't like it. On the other hand, if it works, I say maybe it was a natural progression from hard money to digital money,"  said Blankfein.
In addition to the acceptance and adoption from leading financial firms, Bitcoin price has surged by more than 15-fold in 2017, from less than $900 to $15,700.

Trader Bets $1 Million that Bitcoin Price Will Reach $50,000 in 2018

An unknown trader or group of traders has placed a million-dollar bet that the bitcoin price will reach $50,000 by the end of 2018.

As first reported by  The Wall Street Journal, trading data from LedgerX - the first U.S. exchange to list bitcoin derivatives - shows that an unidentified trader or group of traders paid $990,000 for the right to purchase up to 275 bitcoins in 2018 - at a price of $50,000 each

The bet was made using a call option, a contract that allows the buyer to purchase an asset at a particular price on or before a specific date, no matter what the current market price is. In this case, the buyer or buyers paid an average of $3,600 per bitcoin - a fee roughly equivalent to one-fifth of a bitcoin at today's exchange rate - to lock in a price of $50,000 until Dec. 28, 2018. If the trader exercises the full value of that option, they will have to pay $13,750,000, bringing the full value of their investment to nearly $15 million.

Although the trader remains unidentified, LedgerX CEO Paul Chou hinted that the bet was indicative of rising interest from institutional investors, many of whom remained on the sidelines due to the lack of robust bitcoin derivatives markets on regulated exchanges.

"Without a doubt, there are institutions out there that are looking at these types of trades or have done these types of trades," Mr. Chou told the Journal. "It's not an individual, let's put it that way."

Better Late than Never? Bitcoin Segwit2x Scheduled for December 28th

Last week, the Segwit 2x team indicated in  a CCN press release  that they were planning to move forward with their proposed hard fork in the coming weeks.  Now, Segwit 2x lead developer Jaap Terlouw has confirmed on  the project's website  that the team will finally execute the fork on December 28th.

Originally scheduled for November, the development team cancelled the fork amidst controversy and schisms in the community.  In an official statement, the team recognized that they had "not built sufficient consensus for a clean blocksize upgrade at this time," foregoing the fork in an effort to "keep the community together."

The project's updated roadmap now lists December 28th as the set date for the fork, and in his recent announcement, Terlouw confirmed these developments:

."Our team will carry out the Bitcoin hard fork, which was planned for mid-November,"

Arguing that "commission and transaction speed within the Bitcoin network has reached extraordinary values," Terlouw believes that "it is almost impossible to use it as a means of payment."

In hopes of fixing these issues, the Segwit 2x fork will reduce block times to 2.5 minutes and increase block size to 4MB.

Bitcoin Destined For $28,000 In 2018 - Moas

If it hadn't been for a  massive price correction in the week leading up to Christmas, another big price prediction for Bitcoin in 2018 wouldn't be hard to believe.

However, Bitcoin and other cryptocurrencies saw big drops in market capitalization due to a number of factors and lofty predictions seemed unfathomable in the wake of a massive drop in value.

Considering that the markets have  now consolidated and the likes of Bitcoin and Ethereum have recovered well - it's fitting that we revisit some targets set by the likes of Moas, who has delivered some reliable, well-informed valuations in 2017.

Speaking to Cointelegraph last week in an  exclusive profile interview, Moas explained why he believes Bitcoin is destined to become the most valuable currency in the world. The 50-year-old is confident it will eventually surpass China and Gold in terms of market capitalization:

"Bitcoin would have to jump 20x from where it is now to hit that number one spot. That would put its valuation at around $6 tln, which is near where Gold and China are right now."

"Why do I think Bitcoin deserves the same valuation as gold? It's very simple, I don't know how much Gold there is in the ground, But I know how much Bitcoin there is, and I also know that if the current pace continues with one to two mln people around the world opening up new crypto accounts. We will have a few hundred million people by this time two years from now trying to get their hands on a few million Bitcoin that are available."

South Korea Clamps Down on Bitcoin Trading Amid Market Frenzy

South Korea will require people who trade Bitcoin and other virtual currencies to do so under their real names, the country's government said on Thursday, as part of efforts to curb speculation.

Bitcoin, the best-known virtual currency, has been on a gravity-defying bull run over the past few months. The price of a Bitcoin started the year at around $1,000 and topped $19,000 earlier this month, causing swarms of ordinary savers around the world to get in on what remains a largely unregulated - and  highly volatile - investment.

Nowhere, though, has the frenzy over virtual currencies been as fevered, or as sudden, as  in South Korea.

Until recently, markets for Bitcoin and its competitors barely existed in the country. But a dramatic spurt of interest has swept up ordinary people from students to retirees. Trading has become so popular that some South Korean exchanges have set up physical storefronts where the uninitiated can learn more and buy in.

Requiring that trading take place using real names brings virtual currencies like Bitcoin more in line with other financial products in South Korea. Although Bitcoin has shed some of its associations with payment for illegal activity, the real-name policy set out on Thursday could also make it easier for the South Korean government to track transactions and to tax capital gains from virtual-currency investments. The price of Bitcoin tumbled after the announcement.

Strategist Tom Lee Boosts Bitcoin Price to $20,000 in Mid-2018

Tom Lee , co-founder of Fundsrat Global Advisors, the only major Wall Street strategist covering bitcoin, sees a silver lining in bitcoin's current fallout and has raised his bitcoin price target from $11,500 to $20,000 for mid-2018.

Lee said bitcoin's intrinsic value has increased over the last month due to the growth of new bitcoin wallets, and that Fundsrat is buying bitcoin as the price has dropped, CNBC reports.

A Forecast 37% Price Jump

The revised target represents a 37% jump from the $14,600 price on Coinbase on Friday afternoon. Bitcoin fell 47% to $10,400 in the morning from its record $19,800 last Sunday. Bitcoin price is  back above $15,000 today amid an ongoing recovery.

Fundstrat projects unique IP bitcoin wallet addresses will increase 50% by mid-2018 while user activity will rise 10% from present levels, Lee said. Lee has raised his mid-2018 projection twice since late November, when he raised it from $6,000 to $11,500. He initiated the $6,000 projection in August.

Bitcoin has surged nearly 1,900% this year, even with Friday's steep decline.

Lee maintained his  $25,000 bitcoin price target for 2022  based on the Bitcoin Investment Trust (GBTC) over-the-counter price moving from $1,300 to $2,200. GBTC's price has jumped more than 1,500% to $1,900 this year. Lee, who was J.P. Morgan Chase's chief equity strategist from 2007 to 2014 before helping to launch  Fundstrat , became the first widely followed market strategist to focus on bitcoin's price back in July. He is now Fundstrat's managing partner and research head.

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