Bitcoin (abbreviation: BTC; sign: ₿) is the first decentralised cryptocurrency. Nodes in the peer-to-peer bitcoin network verify transactions through cryptography and record them in a public distributed ledger, called a blockchain, without central oversight. Consensus between nodes is achieved using a computationally intensive process based on proof of work, called mining, that guarantees the security of the bitcoin blockchain. Mining consumes large quantities of electricity and has been criticised for its environmental effects.
The above definition of Bitcoin is from Wikipedia. We would argue that it is not the first cryptocurrency as decentralised unregulated virtual ledger money created via an efficient communications network has been around since the 1970’s. This “Synthetic Money “outgrew the size of the amount of US dollars recorded by the FDIC in 15 Years. Because it is not regulated there is no real way to measure the amount of this money out there. However, it is estimated to be 2 – 5 times the amount you get told by the Federal Reserve. The US has around 35 trillion dollars of debt, which means the offshore US debt market could be anywhere from 70– 160 Trillion.
This “Synthetic Money“ grew larger than the USD in 15 years. Bitcoin has had the same amount of time to prove itself as a currency but has failed to do so as it is not widely used and not widely accepted. For now, Bitcoin can be seen as a store of value and not a form of exchange, Until such time passes when these dynamics change.
Why are we long Bitcoin:
Due to so much Political instability and the 2 government spending monitoring projects happening around Central Bank Digital Currencies (CBDC) BRICS – mBridge project but the more scary and much more Dangerous BIS – Agora project (which is progressing scarily fast). We can appreciate that the common person would not like to be monitored at all times and would not like to be restricted to where and what they can spend their money on. This makes Unregulated peer to peer transactions seem so much more attractive, with somewhat of a view to a “safer/ more desirable place” to store your money as opposed to the bank.
This is a similar mindset to someone who may be inclined to buy gold (hence the “store of value” mentioned before). Because of this we have chosen to Label our chart with Elliot wave in this way. Note how we could be very close to completing our first ‘moderate’ impulsive wave up with the count of 5 almost complete. Once this has completed we will monitor the pullback to get ready to embrace the almighty wave 3 ‘the next moderate cycle’ we all know this wave can have potential to be a big one.
Solana is an honourable mention on this topic of crypto’s.
Why Solana:
Solana is a blockchain built for mass adoption. It’s a high performance network that is utilised for a range of use cases, including finance, payments, and gaming. Solana operates as a single global state machine, and is open, interoperable, and decentralised.
We should take note that one of its range of uses is ‘ Finance’ Solana has the ability to be used to create (money) loans and earn interest on those loans. Just like a bank. We all know that the largest creators of money in the world come from our commercial banks.
Wikipedia states-
When commercial banks lend money today, they expand the amount of bank deposits in the economy. The banking system can expand the money supply of a country far beyond the amount of reserve deposits created by the central bank, meaning contrary to popular belief, most money is not created by central banks.
Solana is the 4th largest Crypto currency by market share. And has grown 4 times as much as the bellwether of crypto’s Bitcoin in 3 months.
Although it is much smaller than Bitcoin it is still a stable coin and has a desired use and is heavily respected which should help to keep the currency afloat where the alt coins may show signs of danger.
We have labelled our Solana chart as such.
It is showing a broken trend line with some room to move before we reach our blue 5 to complete our wave count.
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citation:
https://en.wikipedia.org/wiki/Bitcoin
https://solana.com/docs/intro/overview#:~:text=Solana%20is%20a%20blockchain%20built,open%2C%20interoperable%2C%20and%20decentralized.
https://en.wikipedia.org/wiki/Money_creation#:~:text=When%20commercial%20banks%20lend%20money,not%20created%20by%20central%20banks.
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