Willy Woo on Why It's 'an Extremely Great Time to Buy Bitcoin'
This was quite weak for Bitcoin and crypto in general with pave announcing that it will allow it's three hundred and forty-six million customers to hold bitcoin ether and other cryptocurrencies as well as use them to pay pay. Pals Twenty six million merchants. Avenues the price of Bitcoin shot up briefly flirting with thirteen thousand dollars. What do you make of PAYPAL's news? yeah. Well. It's very much significant if you were to look it on chain, exactly how many people actually holding the coins in the Wallet? Well it currently is only twenty three point four million holds on shade and if you count the exchanges, these one, hundred and one million. Active unique accounts so if you look at cal, it's all mice five times it's four, hundred, eighty million. So you know this the absolute unlock to the mainstream Mac here to excess bitcoin. Way In excess of what we currently have in numbers. Before that news broke, you had been tweeting a bit about how bitcoins price behaviors have been changing. One of your tweets showed a chart of coin dormancy against the bitcoin price and you tweeted dormancy is a measure of old hands selling out as interesting to see old hands reliably sold tops. Until this present cycle, they sold the bitcoin bottom at three, three, thousand, four, thousand dollars they are selling right now. So when you say this this present cycle, what time period are you talking about and why do you think the Behavioral Behavior Fall Chances. Changing. This this is the current cycle of the coin cycles. Every four years because the happening that's kind of impulse of. Of supply reduction, and so we get into these four year macro cycles in this particular cycle is interesting in the we had the fist. Through of exchanges with the lights, of bit mix. Introduced in the telling twenty seventeen and with the crazy leverage is these guys can do on these exchanges they. They have dominated the volume on. Against you know the the organic sputnik people would normally come in and by the coins move muffins the wallets. So when you've got this out live, Oh, you on derivative markets where traders cabin and trade against each other. They play a whole lot of strategic games. You Know Defensive Lines I. It to playing a game of gridiron where you going yards and you're trying to push the other side over the they back trace in. So we're in this era of derivative dominance where it's trade a game. So you see if you look at the chat of Bitcoin, we had this very nice organic. Movements and price. It was very effective fundamentals of visas coming in, and since twenty seventeen, the telling twenty seen really coming into twenty eighteen and into now we've had a crazy whip sore in the price action. It's like you can see the six thousand sort of band that we head and twenty. Eighteen in it plummeted down to three thousand. That was all trade against. On. Exchanges and so what I think's happening is that the old hand Wales, the Oggi's that voted to Bitcoin, wipe win, and the obviously highly capitalize in the boys being out of cell tops the not currently equipped to play the very sophisticated trade games that helped him unto exchanges. So that not selling the top selling the bottoms right now. and. So I don't fully understand. You know when you talk about this kind of game. What is it? You know just from? hodler perspective, it should be. You know something straightforward. You buy low you sell when it's high. So what is going on? Exactly that's keeping them from being able to do that. You know this obviously is a hotly you'll going to organically by and hold for long term sort of held that if you these terrific of exchanges. All you're doing is making bids long shore the prices, go one way or the other, and if I'm correct I make a lot of money in. So what actually happens is there if you see, for example, the gene rural market, the general traders which of unsophisticated traders they may be going long. So if your though the winner. you'll the whale onto exchanges and the winners team to be one to the Mac out according to picnics ninety nine seat lose. you're the guy with. Tens of millions of dollars of what we call Ammo. To bad to push the MAC at one way. So for example, if you've one's going long. And I'm the one percent. Well, I'm going to choice it and I'm going to sell and I'm going to sell in the NFL I may even sell on spot exchanges to to push the price down and I'm trying to push the price down below the defensive line of people going long because if you going long you bidding on a going out, but you do have this. Line in the sand where if you're wrong, you're either liquidated will you have a stop loss where you can a sell out both both cases you're going to sell out? So what the whales do is they they counted trade you they pushed the price below your offensive line, and at that point you have to sell in and then suddenly the price plummets and then thou- group at the bottom and they win and so you know that happens with your long assured the the ninety nine percent lose, and this is a derivative. Casino game. With with they're very smart sophisticated players. That have now entered bitcoin is completely breaking headache