As mentioned in my last blog article, anyone who knows me or has been in a crypto business or platform of which I’ve been a member will know that I’ve been in the Bitcoin and cryptocurrency space for a good 6 years now, and that during this period have gained a fair bit of knowledge about Bitcoin in particular – something I put down to doing a lot of asking, and a lot of reading.
There is tons of info on the internet around Bitcoin but one of the things I try to do is separate the “meat” from the “hype” – the fact from the fiction.
What interests me more than all the (often tedious) predictions of Bitcoin “going to the moon” and reaching one gazillion dollars in price by the end of the year are the “real world” stories – those covering what is actually happening on the ground.
This being the case, I found the article below to be particularly interesting and worth sharing:
Entitled “Miami mayor says city employees should be able to take their salaries in Bitcoin”, it reads:
“Miami city employees could soon choose to get their salaries paid in Bitcoin rather than USD. In an interview with Forbes, Mayor Francis Suarez said tangible paths to expand Bitcoin’s adoption throughout the city included enabling city employee salaries to be paid in BTC. Major figures in the cryptocurrency world have responded positively to the idea, with Twitter and Square CEO Jack Dorsey calling it “smart” on Twitter. Gemini co-founder Tyler Winklevoss stated that the mayor is “leading the way for governments and Bitcoin.” Mayor Suarez told Forbes that due to the rise in crypto’s popularity among citizens, he wants to do everything he can to make Miami a Bitcoin-friendly city. Other proposals include allowing local fees and taxes to be paid in Bitcoin and certain other cryptocurrencies, as well as investing some of the city’s treasury into Bitcoin, following Microstrategy’s example. Although he isn’t sure of specific amounts, Suarez explained that the treasury investment would be structured as a public-private partnership, with the private partners receiving some of the rewards for alleviating some of the risks. He also revealed that he’s also considering financing his re-election campaign in Bitcoin. He isn’t the first to turn to Bitcoin to help fund political campaigns with Democrat Andrew Yang, California U.S. Rep. Eric Swalwell, Minnesota U.S. Rep. Tom Emmer, and Libertarian Lara Loomer among U.S. politicians who have already accepted cryptocurrencies in past campaigns. The mayor believes Bitcoin will be the “biggest story for the next few years.” Late last year the mayor called Bitcoin a “stable investment” during an “incredibly unstable year.” Last week, he uploaded Bitcoin’s whitepaper onto the government’s website saying: “The City of Miami believes in Bitcoin and I’m working day and night to turn Miami into a hub for crypto innovation.” The mayor told Forbes that he has reached out to other states and jurisdictions, including Caitlin Long in Wyoming and Florida CFO Jimmy Patronis to help drive Bitcoin-friendly changes in Florida’s legislature. These efforts are part of the city’s push to be the next major tech hub in the U.S. with plans to grow innovation and tech growth in the next few years. Should these actions take effect, Miami’s 450,000 citizens may be encouraged to start transacting in Bitcoin on a regular basis, with the potential for this to spread to the rest of Florida’s 21.5 million residents. It would also make the city more attractive for blockchain-related tech companies and events. Major crypto conference Bitcoin 2021 announced earlier today it was moving from Los Angeles to Miami in June this year. Although Miami may be the first U.S. city to offer employees salaries in Bitcoin, other companies have also been exploring this. Last week, Cointelegraph reported that software development services provider Sequoia Holdings, based in Virginia, is offering employees the ability to sacrifice a portion of their salary to invest in either Bitcoin (BTC), Bitcoin Cash (BCH), or Ether (ETH)”.
Another story I found interesting was the well-publicised tweet two weeks back from ex-South African and purportedly the wealthiest person on the planet, Elon Musk. Containing simply the word “Bitcoin”, the tweet resulted in an approximate but immediate 20% spike in the Bitcoin price, due to the interest raised by his huge Twitter following..
Whilst the bitcoin price has retreated a tad, the fact that one simple tweet could elicit such interest is…well, interesting.
Also interesting was Ark Invest’s article entitled “What it would take for Bitcoin to hit $70K”. In its explanation, it states that bitcoin’s price is supported by “robust network fundamentals,” and that if more companies allocate a portion of their balance sheet to BTC, the price could skyrocket. In its annual Big Ideas report, the company states that the price of bitcoin would increase by roughly $40 000 if “all S&P 500 companies were to allocate 1% of their cash” to BTC. This scenario isn’t entirely unrealistic as support for the BTC network continues to grow. According to the report, bitcoin’s price increase seems to be driven less by hype. With the leading cryptocurrency appearing to gain more trust, some companies are considering it as cash on their balance sheets. At current values, a $40 000 gain would put Bitcoin’s price in the vicinity of $73 000 – whilst if S&P 500 companies allocated 10% of their cash reserves to BTC, the digital currency’s price could increase by $400 000. The influx of institutional and corporate buyers adds to the strong hands that currently make up the Bitcoin market. Industry data consistently shows that more than 60% of Bitcoin’s circulating supply hasn’t moved in a year, underscoring the conviction of long-term holders. MicroStrategy has led corporate America’s push into Bitcoin, with the data analytics firm accumulating nearly 71 000 BTC at a basis price of over $1.1 billion. Its holdings are currently worth roughly $2.4 billion. MicroStrategy and payment company Square “are showing the way for public companies to deploy bitcoin as a legitimate alternative to cash,” according to the company’s report.
As mentioned previously, I am certainly no expert in Bitcoin – but I AM fascinated by it.
I’m also no financial advisor and not equipped or licenced to give financial advice. So when asked whether it’s the time to buy Bitcoin, or whether it’s the right decision to buy Bitcoin, I tend to point people to the internet and encourage them to read up on the topic. After all, buying Bitcoin – any cryptocurrency for that matter – is a decision that only the individual can make, based on his or her risk profile.
What’s important is to be KNOWLEDGEABLE. And not to jump in because everyone else is jumping in.
Investing in cryptocurrencies (if “investing” is the right word!), is risky. It’s hugely important to be aware of those risks….
There are two websites I visit daily.
I’d encourage anyone interested in getting into the cryptocurrency space – whether with a view to buying Bitcoin, buying ethereum or any other coin – to consider doing the same. After all, knowledge is power. Especially when it comes to cryptocurrencies, and the lack of understanding that often pervades the space…
Aside from running South Africa’s smallest ad agency, Kavonic Hone – see www.kavonichone.co.za – Gerard has been in the cryptocurrency space for almost 6 years and is an active member of the Hypertech Group’s Hypercommunity and Hyperfund. He is not a financial advisor and does not purport to be one. Neither is he qualified or permitted to provide financial advice. He is resident in Johannesburg South Africa and is contactable on +27 83 444 9888 and on email@example.com or firstname.lastname@example.org His skype address is gerardkavonic. Anyone wanting information on the Hypercommunity’s daily webinars or weekend training sessions is welcome to whatsapp him on +27 83 444 9888 and anyone interested in joining the Hyperfund and the Hypercommunity – after doing a thorough diligence, of course – can do so on www.hypercommunity.africa or https://h5.hypercapital.vip/#/pages/register/register?code=banket1804