Monday, October 19th, 2020
Your Weekly Update On All Things Crypto
  • Raoul Pal predicts Bitcoin will hit $1M in five to six years
  • Filecoin finally launches to mainnet after years of waiting
  • We discuss the Bitcoin Stock-to-Flow model
  • Stripe Acquires Paystack in global expansion strategy
  • Key wedge forming in Alt Coin Dominance chart
  • Picks Of The Week feature BAND and OXT
Bitcoin Headed For A "Wall Of Money"
Last week, in an interview with Stansberry Research, Real Vision Founder and CEO Raoul Pal gave an estimation that Bitcoin may hit $1 million by 2025.

If you follow economics, you have probably heard the name, Raoul Pal. He is the former Head of European Hedge Fund Sales at Goldman Sachs, Portfolio Manager at GLG Global Macro Fund, and Founder of The Global Macro Investor & Real Vision. Raoul has been openly bullish about Bitcoin for years but now see the writing on the wall for a massive cycle of corporate investment flowing into the leading cryptocurrency.

He sites a massive wave of corporate investment following the news of MicroStrategy's & Square's major investments over the past few weeks. In fact, only 5 days after Square released their open-source framework for purchasing Bitcoin, Stone Ridge Holdings announced an investment of $114M worth of Bitcoin. In their announcement, they made a "call for banks and philanthropies to make Bitcoin a principal component of their reserve strategy." These three major corporate investments serve to validate this diversification strategy and pave the way for many new businesses to adopt a similar reverse strategy in the years to come.

The Coronavirus has irrevocably shifted the macro investing landscape. With central bank balance sheets ballooning, interest rates looking like they may go negative and bond yields approaching zero, corporations and institutional investors are looking for alternative ways to store their capital. That alternative mechanism is quickly emerging to be Bitcoin. We're in for an exciting few years, and we're happy to have you here with us for the ride!
Filecoin Goes Mainnet
Filecoin finally launched it's Mainnet after over 3 years of waiting. Filecoin went through Y-Combinator in 2014, and raised over $200M from accredited investors in only 30 mins during 2017's ICO boom! The protocol allows users to buy and sell unused storage space using the native Filecoin (FIL) token. Filecoin users can hire miners to store or distribute data, essentially turning any open hard drive space into a giant network of distributed cloud servers.

There are already more than 500 pebibytes (PiB) of verified storage available on the network, that can store more than "7 times the entire written works of mankind (in all languages) from the beginning of recorded history to the present day."
Bitcoin Stock-to-Flow
Those who have been following Bitcoin for a few years have probably heard of the Stock-to-Flow model. This model represents the price of bitcoin (on an exponential scale) as it relates to the supply dynamics of the monetary system. Bitcoin undergoes a halving every 4 years, which means the amount of bitcoin being earned by miners gets cut in half in a consistent and predictable manner. The change in color from purple to red represents the last halving that occurred. When bitcoin halvings have occurred in the past, we have seen the price respond dramatically in quarters to follow.

Disclaimer: It should be noted that some critics have come out against the accuracy of this model, however, although it has not been proven, we still find it to be a great indicator of past price movement, and how they relate to the timing of the halving cycle.

We are now just shy of 6 months removed from the last halving, and the price seems to be trending upwards. Pay attention to this chart and use this as an added tool in your arsenal to analyze the Bitcoin price.
Alt-Coin Dominance
The graph above shows the alt-coin dominance, meaning the percentage of the cryptocurrency market that is taken up by coins other than bitcoin. This graph is a view on a daily time frame.
We are reaching a critical wedge in the alt-coin dominance chart. We have been held in a downward channel since the beginning of September but have met horizontal resistance at 39.44%. If this chart breaks to the upside, it means we could be in for the start of another alt-coin cycle, however, it breaks down below the horizontal line of support, it means Bitcoin will take over and outpace alt-coins in price growth.
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Stripe Acquires Paystack
Last week, the US payment giant, Stipe, announced the acquisition of Nigerian payment startup Paystack. The exact value of the deal was not disclosed by either party, however, TechCrunch reports the deal was worth over $200M.This move embodies Stripe's international expansion plans brought forth by their most recent $600M funding round in April.

Stripe made hostile headlines in the crypto-community in 2018 when they announced they were giving up on blockchain payments. At the time, their COO Claire Hughes Johnson said, "Bitcoin and other blockchain-based payment services are slow, impractical, and overhyped."
Although Paystack is not a blockchain-based company, we wonder if Stripe's global expansion strategy may lead to the acquisition of a cryptocurrency payment solution in order to meet the growing consumer demand around the world.
Band (BAND)
Band Protocol is a multi-chain oracle protocol designed to aggregate and connect real-world data into smart contracts. Band is the second-largest oracle solution, behind Chainlink, and a critical technology in the development of decentralized finance applications.

BAND has seen a 68% decline against Bitcoin since August 10th and has double-tested a key line of resistance-turned-support that has been valid since the beginning of the year. We expect a bounce off this line and for BAND to start its recovery back to its recent highs.
Orchid (OXT)
Orchid is a blockchain-based VPN application built on Ethereum to help restore an open and accessible Internet for everyone. The Orchid network enables a decentralized virtual private network (VPN), allowing users to buy bandwidth from a global pool of service providers. Privacy is a key tenant of the blockchain revolution, and Orchid is a key player in providing that function.

OXT has seen a 70% retracement versus Bitcoin since the middle of August. It has now reached a critical line of support at 2150 satoshis and looks primed to bounce off this support and begin its return to recent highs.
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