You Think PayPal and MicroStrategy Were Big For Bitcoin, Wait ’Til This Happens
The 2020–21 Bitcoin bull run has been nothing short of breathtaking. And to think it’s just getting started makes it even more mind-blowing.
For Bitcoin vets, this isn’t necessarily a surprise. I mean Bitcoin bull runs do run with its halving cycle. But this bull run may be the last best opportunity to see Bitcoin reach spectacular new highs over a prolonged period of time.
The lead up to what’s happening now set the foundation for what’s to come in 2021 and beyond. Everyone knows what the foundational events of 2020 were but here they are in a nutshell:
- MicroStrategy ditches cash for Bitcoin as its treasury reserve to the tune of 70,470 coins (in three tranches) valued at nearly $2.4 billion.
- Grayscale Bitcoin Trust scooping up Bitcoin at light speed — approximately $11.1 billion in Bitcoin total. That lump sum is 2.7% of Bitcoin’s total supply rapidly heading toward 5%.
- PayPal begins offering Bitcoin to its 280 million+ customers starting in the U.S. in 2020 and rolling out internationally in 2021.
- Square purchases 4,700 Bitcoin in October 2020 for $50 million.
- Fidelity Digital Assets added collateral agent capabilities to its services line, paving the way to offering Bitcoin to its customers.
- Mass Mutual purchases $100 million worth of Bitcoin in December 2020.
- Anthony Scaramucci’s firm SkyBridge Capital announced a Bitcoin-focused fund in December 2020 and followed up with a $300 million investment.
The list goes on, but you get the idea. Big institutional players are circling around Bitcoin quickly as The Fed continues to print more money and interest rates continue to plunge — potentially to negative territory.
The Bitcoin halving, the rush of institutional money into Bitcoin (and soon to Ethereum and other crypto), deteriorating economic conditions, and the coming ordinary Joe retail demand will drive the supply squeeze further. Look for the following 5 pieces of Bitcoin news and adoption in the first half of 2021 that will throw gasoline on an already rapidly-spreading forest fire of Bitcoin accumulation and adoption that will push price action to dizzying heights.
#5. E*Trade
E*Trade will announce that it will add cryptocurrency trading to its platform, adding it to its current offering of stocks, mutual funds, futures, options, ETFs, and more. With more than 5.1 active customers to the crypto table. E*Trade getting into the crypto game does three things: 1) It brings its millions active traders to the crypto world ready to pounce on Bitcoin, and 2) drives demand for Bitcoin and other cryptocurrency to new new highs, and 3) legitimizes Bitcoin and crypto as a mainstream investment vehicle.
#4. Tesla
We all know about the famous Twitter exchange between Tesla CEO Elon Musk and MicroStrategy CEO Michael Saylor on December 20, 2020. You know, the one where Elon tweets a graphic showing the temptation of Bitcoin. Musk and Saylor had a back and forth where Musk infers his interest in buying a chunk of Bitcoin, instead of piling up cash in Tesla’s treasury. Musk questions whether large transactions like that are even possible and Saylor replies with a resounding “yes” even offering to “share his playbook” with Musk.
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Musk and Saylor are two of the brightest people on the planet and Musk always has intent in mind. So while he didn’t come out and say he’s doing to ditch Tesla’s cash for Bitcoin (that would be a breach of his fiduciary duty and company bi-laws at the least and breaking SEC regulations at worst), he’s tipped the market and the world that he’s thinking about it.
Tesla putting billions of dollars into Bitcoin makes a lot of sense. And it would take another gianormous chunk of Bitcoin off the market, driving the price higher and further contributing to the already thin supply squeeze. There are three other positives that come out of such a move: 1) It immediately escalates Bitcoin to consumer and institutional investor celebrity status, 2) Solidifies Bitcoin as an asset class that’s won’t be going anywhere anytime soon — or ever (heck, everyone knows who Elon Musk is and that means it attracts even more retail fomo), and 3) If you both a Bitcoin HODLer and Tesla stockholder, you get two bits of the apple — Bitcoin and Tesla accelerated price action.
3. Google Pay
With over two billion Android users users on the planet, the adoption of Bitcoin and crypto by Google Pay would be the equivalent of a tape-measure home run.
The addition of Bitcoin and crypto by Google isn’t just a move that benefits Bitcoin, it gets Google in the middle of the crypto fray. This move would be a necessary one from a strategic point of view as the company looks for other methods to acquire and keep users.
2: Amazon
The next big shoe to drop in 2021 is the adoption crypto by Amazon. This means as both a form of payment as well as a way to buy/sell crypto (like PayPal).
With over 150 million paid Prime members globally and over 300 million active customer accounts worldwide, Amazon brings a enormous customer base to the Bitcoin and crypto at just the right time. This means accelerated adoption further legitimizing Bitcoin.
1. Apple Pay
The biggest piece of Bitcoin news in the first half of 2021 will be Bitcoin support for Apple Pay. With over 1 billion iPhones on the planet, Apple does not want to be late to the Bitcoin and crypto party and they will need to move soon.
Like Amazon and Google, Apple brings a zillion retail customers to the space and will want to take (what they think) is their proper place atop the crypto landscape. And like Amazon and Google, they also have a pile of cash to stock its Bitcoin reserves.
What Else?
Aside from these five major events that will solidify Bitcoin and crypto in 2021, there will be others. Major banks will be jumping on the crypto bandwagon whether it be to buy and sell crypto or to be custodians. And we’ll have many curve balls and surprises along the way. But one thing’s for certain, 2021 (and 2022) are going to be very big for Bitcoin. Bigger than even some of the most respected experts imagine.
About The Author
Mitchell Koulouris is a Bitcoin analyst and pundit. You can follow Mitchell on Twitter at @MitchKoulouris contact Mitchell at mitchkoul@gmail.com. Subscribe to Mitch’s YouTube channel, Bitcoin Informant at https://www.youtube.com/c/BitcoinInformantShow.
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