JP Morgan Gives 3 Reasons to Add Bitcoin to Investment Portfolios

JP Morgan has outlined three key reasons why investors should add bitcoin to their investment portfolios. Small allocations to cryptocurrencies would “improve portfolio efficiency due to high returns and moderate correlations,” JPMorgan’s analyst explained.

JP Morgan Sees Benefits of Hedging With Bitcoin

JPMorgan released a report last week entitled “What cryptocurrencies have and haven’t done for multi-asset portfolios.” Published by the firm’s head of Cross-Asset Strategy division, John Normand, the report explores cryptocurrencies’ use for portfolio diversification.

Firstly, the report acknowledges that “Bitcoin has already achieved the fastest-ever price appreciation of any must-have asset to which it is often compared,” such as gold in 1970s, Japanese equities in 1980s, U.S. tech stocks in 1990s, Chinese equities in 2000s, commodities in 2000s, and FANG stocks in 2010s.

JP Morgan Gives 3 Reasons to Add Bitcoin to Investment Portfolios

While noting that bitcoin is highly volatile, the analyst hypothetically asked: “Why bother considering an unconventional and high-volatility hedge?” He then answered his own question by giving three reasons.

Firstly, “Equity and credit valuations look record-rich for a very young business cycle,” the report details. Secondly, “conventional hedges like DM bonds barely serve as insurance when US 10Y rates are near 1%.” The report elaborates that the collapse of DM bond yields to negative levels in Japan and Europe and to 1% in the U.S. has forced investors to focus on alternative investments.

The third reason concerns “some as-yet unseen shocks (materially higher inflation, economically-debilitating cyber attacks or climate catastrophes),” which the JPMorgan analyst believes “could favor an asset that operates outside conventional financial channels.” For example, Normand cited extraordinary monetary and fiscal stimulus over the past year, which creates general concerns about portfolio vulnerability to a macro or policy shock.

The JPM analyst further asserted that “the mainstreaming of crypto ownership is raising correlations with cyclical assets, potentially converting them from insurance to leverage.” Nonetheless, he noted that for long-term portfolio efficiency:

Small (up to 2%) allocations to cryptocurrencies still improve portfolio efficiency due to high returns and moderate correlations.

As for shorter-term diversification, Normand wrote: “Over shorter intra-month and intra-quarter horizons, crypto assets continue to rank as the poorest hedge for major drawdowns in global equities, particularly relative to the fiat currencies like the dollar which they seek to displace.” In addition, he was quoted as saying:

Crypto continues to rank as the least reliable hedge during periods of acute market stress.

Meanwhile, another JPMorgan analyst has forecasted that the price of bitcoin will reach $146K as competition between the cryptocurrency and gold heats up. Earlier this month, JP Morgan said that the approval of a bitcoin exchange-traded fund (ETF) this year could cause a price drop. Nonetheless, the firm sees $600 billion demand from global institutional investors for bitcoin.

Do you agree with JPMorgan? Let us know in the comments section below.

Source: Bitcoinnews.com

Ethereum explodes 21% in just one day to secure a new all-time high

The price of Ethereum set a new all-time high, exploding by as much as 21% in 24 hours to trade above $1,470 on Monday…

The price hit $1,473, topping its previous record of $1,439 set last week, before settling around $1,396 in early European trading.

The record high came on the seven-year anniversary of the day that Vitalik Buterin, a Russian-Canadian best known for being Ethereum’s main developer, announced the cryptocurrency’s launch on a bitcoin forum in 2014.

The world’s second-largest cryptocurrency, with a market cap of $160 billion, has risen on 90% a year-to-date basis, outpacing bitcoin’s 10% rise.

But Ethereum’s rally is expected to match the momentum in bitcoin’s. Analysts at Galaxy Trading expect the price to trade as high as $3,000 in the next few weeks. Comparing bitcoin and Ethereum’s rally, the analysts noted a similar pattern of limited price momentum followed by a major breakout.

Ether has also been seeing massive trading volumes on ZebPay, India’s oldest and most widely-used bitcoin and crypto asset exchange.

“Ether tends to follow bitcoin,” said Rahul Pagidipati, CEO of ZebPay. “Now that Bitcoin has hit record highs and is consolidating, investors are adding ether. Together they constitute about 80% of the total crypto market cap and are the biggest on ZebPay.”

Another popular cryptocurrency analyst, Lark Davis, expects Ethereum to double in the next two weeks just “like bitcoin did.”

Ethereum has gained…

Continue reading at BUSINESS INSIDER

 

Bitcoin 2017 Vs. 2021: How This Bull Run Is Different

2021 is shaping up to be a momentous year for Bitcoin as the price hurtles toward $40,000 — more than double its 2017 all-time high. As HODLers rejoice and naysayers are left in disbelief, it’s important to note that a lot has changed in the world since 2017, making this bull run infinitely disparate from the previous one.

Global pandemic and political mayhem aside, many other things have changed in the last few years, even in the microcosm of Bitcoin. In short:

  1. Bitcoin, not shitcoins
  2. Accumulation, not trading
  3. Institutions, not consumers

Bitcoin, Not Shitcoins

In 2017, bitcoin was like a gateway drug for all of crypto. People weren’t necessarily looking at bitcoin as a long-term investment. They were using bitcoin to trade altcoins and get into ICOs — gambling away fortunes in hopes of getting filthy rich.

2017 was the first time that the mainstream public had any sort of exposure to crypto assets and when it happened, it was like the Wild West. Regulation was near zero and anybody, anywhere who had some money could spin up a token and list it on an exchange. Consumer protections were nonexistent and suddenly, everybody was an expert on evaluating early-stage, blockchain-based “investments.”

This led to the ICO craze where everyone from your Uber driver to seasoned Silicon Valley investors became blinded by the hype and got burned on fundamentally unsound investments. To my chagrin, this is likely how the majority of nocoiners today remember bitcoin and crypto. This New York Times article is the epitome of 2017 crypto-mania:

A lot of the hype and money to be made in 2017 was outside of bitcoin, so capital flowed from fiat into bitcoin and then into pretty much every other cryptocurrency. From there, it essentially went to shit, as the creators of the tokens/early investors took everyone’s money by dumping their bags. (Reminder: Satoshi has never sold any bitcoin.) In fact, within the first half of 2018, over 86 percent of all ICOs that listed in 2017 had falled below their initial listing price, and their founders are likely either in jail or enjoying their ill-gotten wealth on a beach in some remote island paradise.

This time, things are different. Money flowing from fiat to bitcoin is staying there. Bitcoin market dominance was at an all-time low during peak crypto mania in 2017 and now, it’s almost…

Continue reading at BITCOIN MAGAZINE

 

$900 Million Liquidated in 24 Hours as Bitcoin Plunges

The last 24 hours have been undoubtedly going in favor of the bears. That’s according to data concerning the total liquidated positions in the past day as Bitcoin’s price is seemingly headed towards $30,000.

  • In less than a day, the cryptocurrency derivatives market saw a total of $900 million worth of both long and short positions liquidated.
  • Given the nature of the market, it’s no surprise that most of the volume comes from liquidated long positions, which account for 80.77% of all or roughly around $725 million.
  • In other words, it appears that the bears are on top during the last 24 hours.
  • The majority of the liquidations came from the Bitcoin derivatives market, accounting for about $647 million, according to the most recent data.
  • Second is Ethereum with about $161 million, followed by Litecoin, Polkadot, Bitcoin Cash, and Ripple.
liquidations_data
Liquidation Data. Source: Bybt
  • As seen in the above picture, the bulk of the liquidations (40.76%) came from Binance. Interestingly enough, Bybit is now the second-largest exchange when it comes to liquidation volumes as it managed to replace Huobi. OKEx follows in fourth place.
  • It’s also worth noting that about $72 million were liquidated in the past hour alone, with the largest single liquidation order taking place on OKEx’s BTC market with a face value of $5.34 million.
  • It’s interesting to see how the market will develop and whether a dump to $30K is ultimately imminent.

Source: Crypto Potato

3 reasons Bitcoin abruptly dropped by 7.4% overnight

The price of Bitcoin (BTC) dropped sharply from $37,800 to $35,000 overnight, liquidating $572 million worth of cryptocurrency futures positions.

There are three major reasons why the price of Bitcoin declined steeply in the past 12 hours. The reasons are an overheated derivatives market, growing doubt in the market, and the lack of upside volatility.

BTC/USD 15-minute candle chart (Bitstamp). Source: Tradingview

Derivatives market was overheated before the correction

Before the pullback occurred, the Bitcoin derivatives market was extremely overheated. The futures funding rate was hovering at around 0.1%, which is 10 times higher than the average 0.01%.

BTC futures perpetual swaps funding rates. Source: Digital Assets Data

The futures funding rate is a mechanism that achieves balance in the futures market by incentivizing long or short contract holders based on market sentiment.

If there are more long contracts or buyers in the market, then the funding rate turns positive. If it becomes positive, then buyers have to compensate short-sellers with a portion of their contracts every eight hours, and vice versa.

Almost all major cryptocurrencies saw their funding rates spike to around 0.1% to 0.3%, which meant the market was extremely overleveraged.

When the market is this overcrowded, the likelihood of a long squeeze increases, which could cause many futures contracts to get liquidated in a short period.

Growing market uncertainty

According to researchers at Santiment, there is “trader doubt” in the market on whether BTC would hit $40,00 again. They wrote:

“Thinking face There is an increasing amount of trader doubt that #Bitcoin will revisit $40,000. But according to address activity and trade volume, the long-term trend still looks plenty healthy. Keep a close eye on whether $BTC’s usage rate stays propped up.”

Bitcoin price causes concern among traders. Source: Santiment

The fundamentals of the Bitcoin blockchain network, such as address activity and trade volume, remain strong. However, the market sentiment has dwindled in the past week as BTC continues to struggle to break out of the $38,000 resistance area.

Lack of upside volatility

Bitcoin has been seeing weak reactions from buyers throughout the past several days, compared to the initial rally to $42,000 in early January.

During the early phase of the rally, whenever Bitcoin dipped to key support levels, like $35,000, there was often a big reaction from buyers.

However, since mid-January, there have been…

Continue reading at COINTELEGRAPH.com

 

Economist: Ethereum To Repeat Bitcoin Rally

Ethereum is now the second major cryptocurrency from the last bull run to break its former all-time high. One author and economist, however, claims that this is only the beginning of the top altcoin following in Bitcoin’s footsteps, and will soon rally to $20,000 mimicking the epic 2017 bull run. Here’s the theory behind the lofty price target more than 10 times the current price per token.

Economist Estimates The Long Term Value of Ethereum Using Metcalfe’s Law

Ethereum this week set a new all-time high, beating its peak set in 2017 amidst a flurry of initial coin offerings and widespread retail FOMO. The top ranked altcoin topped out at $1,419 on Coinbase back in January 2018 – weeks after Bitcoin set its then-record at $20,000.

And although it fell to $80 in the years following, and is only now trading at that former level, an economist, trader, and mathematician believes that Ethereum will follow Bitcoin’s steps to $20,000 eventually.

D. H. Taylor based the target on “Metcalf’s Law [sic] .” According to a summary, Metcalfe’s Law can map “the rate of growth of a network” using “the square of the number” of its users.

“Internet usage, Facebook, and Bitcoin can all be mapped using Metcalf’s Law [sic] , including the price moves of Bitcoin,” the summary continues.

Using Metcalfe’s Law, the author claims that Ethereum will repeat “what Bitcoin did” and move up to $20,000 per ETH

Repeating Bitcoin’s Meteoric Rise Or Outright Outperformance?

A rise from $1,400 per ETH to over $20,000 might sound implausible, but it’s only a 1400% gain from current prices. From May 2017 to January 2018 the altcoin did that much and then some, moving four times that amount during the entirety of 2017.

The report’s author appears to believe the Metcalfe’s Law should put the price per Ether at more than $20,000, following Bitcoin’s “meteoric rise” in 2017.

However, other well known economists, such as Claude Erb of the National Bureau of Economic Research in Cambridge, Massachusetts, have used the model to cap Bitcoin’s maximum price at only $73,000 per BTC. If that’s the ceiling on Bitcoin then a $20,000 target on Ethereum isn’t as realistic.

The problem with Erb’s application of Metcalfe’s Law, is that he incorrectly relies on the total supply of BTC as the total number of “users.” That would suggest Ethereum’s value could go higher than Bitcoin’s based on the total number of tokens, but cryptocurrencies are far more decentralized. The former commodities portfolio manager and finance professor at Duke University lacks a deep enough understanding of the underlying technology.

Taylor, the author with the large target per ETH, does the technology justice and based on their usage of the methodology, expects Ethereum to outpace Bitcoin and eventually have a repeat performance of the cryptocurrency’s 2017 rally.

Source: Bitcoininst

3 Factors That Could Topple The Recent Bitcoin Rally

Bitcoin has held above $30,000 for nearly two full weeks, and the former all-time high of $20,000 seems like a distant memory. But there are three factors that are only growing in threat that could topple the epic bull run the cryptocurrency has been on.

Bitcoin Holds Above $30,000 For Almost Two Weeks, But Strength Could Be Waning

The leading cryptocurrency by market cap has yet to experience any sizable pullbacks beyond 25%. For an asset that’s notorious for 80% or more retracements, and as much as 37% during bull markets, the recent price action is uncharacteristic.

The perfect storm of institutional interest, low supply, and rapidly rising inflation fears, has resulted in the second most powerful Bitcoin bull run yet. And because there’s no telling where the top is, the cryptocurrency could be on track to shatter all expectations.

But if there was going to be a tipping point, Bitcoin could be at it now as it consolidates above $30,000 – more than $10,000 higher than its previous 2017 peak. Here are the three factors that could spoil the upside momentum for the time being.

Three Factors Behind The Sudden Cryptocurrency Weakness

According to one crypto analyst, there are three primary factors that could send Bitcoin lower: low volume, high funding, and a strengthening DXY.

Funding references the rate paid for holding long positions in Bitcoin on derivatives exchanges. The higher funding goes, the more it costs to have those longs open – the system is designed to encourage longs to take profit during extremes.

Low volume is never a good sign for a trend’s strength. Lack of volume often shows that interest is waning in the asset at current prices. A pullback more characteristic of Bitcoin could bring prices back to a level that reignites interest.

However, the cryptocurrency is speculative asset, and volume could increase with another push higher due to FOMO alone. There’s also a chance the low volume is due to the severe lack of coins on exchanges, and the fact that institutional buyers are likely buying OTC and not impacting what’s registered on exchanges for volume.

Finally, the DXY dollar currency index – a basket of currencies trading against the dollar – shows that the dollar is strengthening after one of its worst year’s on record. Excessive fiat money printing to combat the pandemic has devalued the dollar.

But the extreme bearish sentiment on the dollar and over-exuberance in Bitcoin could be too tempting of a reality check for whales to ignore. A large move in the DXY would pull Bitcoin lower, as the two charts are inversely correlated.

Uncertainty around the coming United States Presidential inauguration and new tax policy could prompt a wave of profit taking in to cash. But because the President-elect has plans for much more stimulus money, any divergence in the current Bitcoin and dollar trends will be short-lived.

Source: Bitcoininst

LINK Skyrockets: Chainlink Price Analysis

LINK/USD – LINK Sets Fresh ATH Above $20.77

Key Support Levels: $20.77, $20, $19.17.
Key Resistance Levels: $21.57, $22.82, $24, $24.70.

At the start of January, LINK started to surge higher but became stuck by resistance at $19.17 (bearish .886 Fib Retracement). From there, it started to head lower until support was found at $13 a couple of days ago.

LINK bounced from the support at $13.06 on Wednesday and started to push higher. It closed the daily candle yesterday at around $18 and continued higher beyond the $19.17 resistance today.

After $19.17, LINK went on to break the previous ATH price at $20.77 and continued upward to set a new ATH at $22.82 (1.414 Fib Extension). It has since dropped slightly to trade around $21.15.

linkusd-jan15
LINK/USD Daily Chart. Source: TradingView

LINK-USD Short Term Price Prediction

Looking ahead, the first level of resistance lies at $21.57 (1.272 Fib Extension). This is followed by resistance at the new ATH price of $22.82 (1.414 Fib Extension), $24, and $24.70 (long term 1.272 Fib Extension).

Beyond $25, resistance lies at $25.61, $26.78 (long term 1.414 Fib Extension), $28, and $29.78.

On the other side, the first level of support lies at the previous ATH price at $20.77. This is followed by $20, $19.17, $18.05 (.382 Fib), and $16.60 (.5 Fib).

The RSI is back above the mid-line as the bulls take charge of the market momentum and still has room to drive upward before becoming overbought.

LINK/BTC – Buyers Push Above April 2020 Highs.

Key Support Levels: 55,000 SAT, 52,600 SAT, 50,000 SAT.
Key Resistance Levels: 60,000 SAT, 63,875 SAT, 67,930 SAT.

Against Bitcoin, LINK pushed higher from 40,000 SAT yesterday and continued higher today to break resistance at 50,000 SAT (bearish .236 Fib Retracement).

After breaking 50,000 SAT, LINK proceeded to push above resistance at 52,600 SAT (April 2020 highs) to reach the current 56,400 SAT level.

linkbtc-jan15
LINK/BTC Daily Chart. Source: TradingView

LINK-BTC Short Term Price Prediction

Moving forward, the first level of resitance lies at 60,000 SAT (bearish .382 Fib Retracement). This is followed by 63,875 (1.272 Fib Extension), 67,930 SAT (bearish .5 Fib Retracement), and 71,835 (1.618 Fib Extension).

On the other side, the first level of support lies at 55,000 SAT. This is followed by 52,600 SAT (April 2020 High), 50,000 SAT, and 48,625 SAT (.382 Fib Retracement).

The RSI has pushed higher as the bulls take charge of the market momentum. It is still not yet overbought, indicating the market has room to push higher.

Source: Crypto Potato

Why the Recent Bitcoin Crash Won’t Stop It from Hitting $100,000

For most, it’s hard to believe Bitcoin dropped $10,000 in 24 hours from Sunday into Monday.

But that’s how this works.

Bitcoin’s volatility is a feature, not a bug.

It’s designed to transfer money from weak hands to strong ones.

The $10,000 drop makes for great headlines, but there is absolutely nothing abnormal about this 24% Bitcoin crash.

The reality is, this is a mild correction by Bitcoin standards and actually sets the world’s first global decentralized cryptocurrency up for a more sustainable rise.

Here’s why…

When you zoom in and compare what’s happening now to PlanB’s stock-to-flow model, you can see this correction is (and will be) miniscule in the grand scheme of things…

In fact, the recent Bitcoin pullback actually puts Bitcoin’s price closer to the predicted stock-to-flow model price – which has continued to be 95% accurate in predicting the price of Bitcoin to date (within two standard deviations).

PlanB’s stock-to-flow model has been the most accurate Bitcoin price predictor to date, by far. It predicts Bitcoin’s market cap will surpass the $1 trillion mark (or $55,000 per Bitcoin) by mid-May… And $100,000 per Bitcoin with a nearly $2 trillion market cap by early September.

As far as I’m concerned, we’re still well on our way to hitting those targets. Bitcoin’s price isn’t going to steadily increase at a couple hundred of dollars per day. It’s going to ebb and flow, with fast and furious price spikes and drops until it is a $100 trillion asset.

When you compare what’s happening now to what happened during the bull run of 2017, you will see that Bitcoin is actually more stable now than before.

That’s right. Even though the total dollar amount of this drop from $42,000 to $32,000 is the largest we’ve seen over a two-day period, the percentage change is currently smaller than what we saw in 2017…

During the 2016-2017 bull run, there were six Bitcoin corrections of 29% to 38% along the way from about $600 per Bitcoin to $20,000.

So far, during the current bull run, we have seen three Bitcoin crashes ranging from only 12% to 24%.

Now, could we see this current Bitcoin pullback last a while longer and go down more than 24%?

Absolutely.

But the chances are lower now than before because retail investors were driving the last Bitcoin bull market and institutions are stepping in and buying this time around.

I certainly do NOT think we’re about to face a multi-month bear market at this juncture…

Based on what’s happened following the two previous “Bitcoin halving” events – when the supply of new Bitcoin mined gets cut in half every 210,000 blocks (roughly four years) – this Bitcoin crash will likely only last a handful of days – maybe a week or two at most.

That’s because the 70,000 blocks that follow a halving event clearly produce long bull runs that last about 16 months.

We are currently 35,600 blocks into this bull run after the last halving in May. So that leaves 34,400 blocks to go for this expected bull run.

Since Bitcoin blocks are generated roughly every 10 minutes, that means we have 239 days to go (with more expected bumps along the way).

Two hundred and thirty-nine days from now is Tuesday, Sept. 7 – which is exactly when the stock-to-flow model predicts $100,000 Bitcoin.

If history is any indicator, we could expect to see three more Bitcoin crashes along the way of this current bull market.

There could be more; there could be less. But one thing is certain: Every abrupt drop has always proven to be a great buying opportunity over the long run…

At the end of the day, if you can’t handle the crazy volatility Bitcoin brings, then you need to manage your concern by taking a more appropriate position size.

We’ve already proven why it’s financially irresponsible NOT to own Bitcoin.

All you need to do is add a 1% to 3% position in Bitcoin to not only increase your portfolio’s returns, but also reduce your risk as well.

What to Do with This Current Bitcoin Crash

I’m treating Monday’s move as a big buying opportunity.

The likelihood Bitcoin reaches $100,000 by the summer of 2021 is extremely high in my humble opinion.

But the reason I think that is because I’ve spent thousands of hours studying everything I can about the world’s first and only truly decentralized cryptocurrency.

Every day, I dissect the best Bitcoin bear cases in an attempt to find how and why it’s going to fail. And every day, I fail at that task.

I think Bitcoin could reasonably go considerably higher than $100,000 this Bitcoin bull run…

Based on PlanB’s stock-to-flow cross asset model, I think we will see Bitcoin top out at about $300,000 before the end of 2021. After that, it wouldn’t surprise me to see an ~80% correction back down to around $60,000.

That’s just based on what we’ve seen Bitcoin do in the past. Here’s exactly what’s happened after the previous two Bitcoin halvings…

After the first halving from 50 bitcoins per block to 25 in November 2012 – when one bitcoin was trading around $11 – it jumped as much as 11,136% to $1,236 in December 2013. After that, the price plunged and stayed between $200 and $600 until the next halving…

The second Bitcoin halving from 25 bitcoins per block to 12.5 occurred on July 2016 – when one bitcoin was trading around $650. Then it jumped as much as 2,960% to $19,891 in December 2017. After that, the price plunged to as low as $3,466 before building some steam for the third halving…

Even with Bitcoin trading for $8,550 after it halved for the third time from 12.5 bitcoins per block to 6.25 on May 11, 2020, it’s not unreasonable for it to jump a mere 602% to $60,000 by June 2021… Or 1,069% to $100,000 by September… Or even 3,409% to $300,000 before the end of 2021.

Action to Take: The longer your time horizon with Bitcoin, the more successful you will be with this emerging asset. With interest rates at all-time lows and expectations that they will go lower and even more negative in many parts of the world (including the United States), central banks have boxed themselves into a corner that they cannot get out of… without printing more fiat money. The more fiat they print, the less each individual unit of fiat is worth. And the scarce assets like land, real estate, art, gold, and Bitcoin will be worth more. Hold on to any Bitcoin you currently own and use any 20%+ pullback as a buying opportunity that will work itself out over the long term.

Tom Gentile’s Biggest Crypto Prediction Yet

First, Tom Gentile predicted Bitcoin would hit $20,000 by the end of 2020.

And if you’ve been paying attention, you know that Tom’s right on the money.

Now, he’s got another target in his sights – and he believes it’s the BEST chance for everyday folks to make a fortune.

Take a look.

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Source: Money Morning

The Man Who Lost Access To Bitcoins Worth $245 Million

Investing in cryptocurrencies carries risks of its own. Apart from the highly volatile price, investors who store their funds on external wallets (and not exchanges) need to save and protect the information that will enable them to access the assets.

In case someone loses their private keys (essentially a password for the wallet), this could spell disaster. Such could be the case with Stefan Thomas and his bitcoins worth more than $240 million.

7,002 Bitcoins Could Be Forever Lost

The NY Times recently covered the story of the German-born programmer living in San Francisco. Back in 2011, he produced an educational video called “What is Bitcoin?” for another BTC fan, who sent him 7,002 bitcoins for his services.

However, Thomas didn’t pay much attention to his new holdings as they had a little-to-no value at the time, and he lost the digital keys to the wallet. But in the following ten years, bitcoin’s price has exploded, and the 7,002 coins are now worth about $240 million.

As such, Thomas has made several attempts to access the funds. The wallet, called IronKey, allows users ten attempts to guess the password. If they fail, it will encrypt the content forever. Thomas has already used eight of his most commonly used passwords but hasn’t succeeded.

“I would just lay in bed and think about it. Then, I would go to the computer with some new strategy, and it wouldn’t work, and I would be desperate again.”

From Desperation To Blame To Acceptance

After his latest desperation phase following another unsuccessful attempt, Thomas would blame the unique nature in which bitcoin operates. He blasted the famous narrative “be your own bank,” which carries significant risks in similar situations.

“This whole idea of being your own bank – let me put it this way: Do you make your own shoes? The reason we have banks is that we don’t want to deal with all those things that banks do.”

He added that if banks’ customers have issues accessing their funds, they could quickly turn to the institution and get help. In contrast, the decentralized nature of BTC, meaning there’s no central authority behind it, lacks such services.

While some, such as Thomas, see this as a disadvantage, others believe that it allows them to freely access their funds from any part of the world with just an internet connection.

Although Thomas has two more attempts left at guessing his password, he has already entered the last phase of the five stages of dealing with grief – acceptance.

“I got to a point where I said to myself, ‘Let it be in the past, just for your own mental health.’”

Source: Crypto Potato