The 5 Factors Fueling Bitcoin's Takeoff - and The Questions That Will Determine What Happens Next...

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I've gotten pretty annoyed with people who spent the last year making bold Bitcoin price predictions in the media, just to end up wrong every time.  We can all name a couple of them who regularly appear on CNBC.

But exactly 1 month ago today, in my article covering the bull run that brought us from the 4000's to 7000's I made an exception, and explained why I think we may actually keep what we gained .

In a rare exception to my no predictions rule, I shared why I thought "a dip/correction may NOT be coming" explaining "...after over a year stuck in a cycle of losing any gains shortly after getting them - this may be the bull run where we end up keeping most of it. Because this time, we're not wondering why it went up in the first place."

My point isn't to say 'I was right' - I bring this up to say my point still stands. Today we are seeing more real gains, and valid reasons for them.

This bull run has absolutely nothing in common with 2017, and that's a very good thing.  That was entirely FOMO fueled, this time we're looking at very real moves by some very big players.

|Here's the projects approaching fast on the horizon...

According to insiders, we're weeks, maybe even just days away from an official launch. There's no way to downplay a company that oversees over $7 trillion in customer assets, employs over 40,000 people, and has nearly 200 offices in the US. Cryptocurrency will soon be among the assets they offer clients, beginning with Bitcoin.

The venture involving the New York Stock Exchange, Starbucks, and Microsoft may have just fast-tracked their government licencing process by purchasing a company that already has them.

Which is also Visa & Mastercard's official entry into crypto, this project has been covered in every major media outlet which has an effect on the overall buzz around cryptocurrency.  This level of media coverage surely has resulted in thousands deciding they've held out long enough - if big companies like this are getting in, maybe they should too.

Don't take this as an endorsement of Facebook's coin. Honestly I can imagine this turning out to be good or bad, and can't even guess which it will be.

However, when I say it could turn out good it's only because i'm picturing people using it as a stepping stool, like 'crypto for beginners' - which they eventually ditch for the real thing.

Usability in the real world...
Quietly, there’s beta testing happening which allows people to use crypto in places like Starbucks, Whole Foods, Petco, Nordstroms.

Crypto Finance...
The tools we associate with traditional finance that once required a bank can now be done with cryptocurrency.  After some initial skepticism, these services have managed to establish themselves as reliable and here to stay.

You can get a Bitcoin loan by showing you own cryptocurrency, instead of a credit check.  During bull runs, people are using their crypto to get loaned more crypto... to buy more crypto!

You can earn interest on crypto that you're holding, creating a way to generate profits without having to get into trading.

|Where we go from here...

I think it would be accurate to label the cause of the last couple bull runs 'anticipation'.  Different from FOMO because there's very little speculation involved - all these things we know are coming, for certain.

What we don't know is if these soon-to-launch projects will be a success. 

Watch closely for the answers to these questions - the next big market movements will hinge entirely on the answers: 

Will people use Facebook's coin? If so, will the result be people wanting to learn about and use other cryptocurrencies? Or, will they say they have no need since they already have one that seems to work fine?

Will Fidelity customers want crypto in their portfolio/retirement accounts?  How aggressively will Fidelity push the idea to their large existing customer base?

Has Bakkt lost too much momentum, and gained too much competition since their initial announcement?

If all or most of these turn out to be a success, brace yourself for a bull run that makes 2017 prices seem low.

Author: Ross Davis
E-Mail: Twitter:@RossFM

San Francisco News Desk

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