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Bitcoin to soon benefit from the same animal spirits as Ethereum? by jrcornel

View this thread on: hive.blogpeakd.comecency.com
· @jrcornel ·
$18.89
Bitcoin to soon benefit from the same animal spirits as Ethereum?
# Bitcoin may soon start to benefit from the same craze that's driving Ethereum prices higher; defi...

As I am sure just about everyone is aware these days, defi is all the craze.

People are using the ethereum network to gain access to all sorts of defi protocols that pay hefty interest rates.

Nevermind the fact that interest rates globally are near zero or negative yet these fly by night crypto projects are seemingly able to pay 8%+ APR like it's nothing... but I am sure that can keep going.

But that is besides the point, the point is that defi is pushing up the price of Ethereum and it soon may also help push up the price of bitcoin in a similar way.

Currently there is roughly $10 billion locked in defi:

![](https://images.hive.blog/DQmVERBnNgXAF8BNxkKYi7Bctiiw8qCRNPH2K6LJy665xac/image.png)

(Source: https://defipulse.com/)

That $10 billion is about 10x what was locked in defi a couple months ago...

# We've seen this before...

The really interesting thing is that we've seen this same exact dynamic play out before as it relates to ethereum.

Back in 2016/2017 it was the ICO craze...

Where everyone and their dog was rushing to launch their own token.

The majority of these tokens were being launched on the Ethereum network and were driving the price of Ethereum up and up and up.

It eventually went all the up over $1,300 and well you know the rest of the story.

Given how it played out the last time, the current price around $500 may end up being incredibly cheap 12 months from now, we shall see.

Bitcoin could end up seeing something similar if it plays its cards right...

![](https://images.hive.blog/DQmbM7JkZ9wT3b5mhEnkddd16yhwe79vC79jqsWGthhkzFN/image.png)

(Source: https://twitter.com/QWQiao/status/1300410024632766469)

# Enter Wrapped Bitcoin, or wBTC...

What if wBTC were to find a legitimate use case?

If that were to be the case, considering how much money and users it already has, it has potentially to really start pushing the price.

It could benefit from the same type of positive feedback loop that is currently pushing ether higher and higher.

Combine that with the fact that people may not have to sell bitcoin in order to get involved in their favorite defi projects, that takes away some of the selling pressure we are seeing currently.

Right now there is a ton of fast money moving out of bitcoin and into defi, but if bitcoin starts playing in the sandbox too, well much of that money probably stops leaving.

And it appears to be trending in the right direction:

![](https://images.hive.blog/DQmcF1vPFxCbToxMARQ1A7nx7o5kG472KKok22VhJ4UG55K/image.png)

(Source: https://studio.glassnode.com/metrics?a=WBTC&category=Addresses&m=addresses.NewNonZeroCount)

Now we need to get wHIVE in on the action as well!

Stay informed my friends.

-Doc

Posted Using [LeoFinance](https://leofinance.io/@jrcornel/bitcoin-to-soon-benefit-from-the-same-animal-spirits-as-ethereum)
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@anri.rixardinh ·
The best cryptocurrency app! - https://jamm.to/
👍  
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@jrcornel ·
Why is that?
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@edicted ·
I expect this to happen.  With ETH already outperforming BTC for a while now it feels like more money and value is flowing from that network than Bitcoin itself at the moment.  Once Bitcoin gets with the program things could get really crazy. 
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@jrcornel ·
Yep. It was actually pretty surprising that bitcoin had held up as well as it did with the fast money flowing out of it and jumping in ethereum. It shows the types of inflows that are going into bitcoin to keep it afloat during that time.
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@robertandrew ·
Hey @jrcornel,
I have some extra funds available right now and would like to know if buying a couple of bitcoin is a prudent investment?? Or maybe some of that other stuff you mention in this article ?? 

Should I wait for a pullback on BTC before getting some ??

Thanks for any advice and of course I know you do not give out "professional advice" and I enter at my own risk etc..etc..
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@jrcornel ·
$0.16
Haha well thank you for putting that disclaimer for me at the bottom of your comment. Now, moving past that, to properly give you some advice I need to know a little more about your situation...

- Do you already have BTC?
- Are you planning on holding for a long time or just for a quick trade?

Overall my thinking is that you may get slightly lower prices in the near term, which means you could wait for a bigger dip, however, if I didn't already have some BTC I would probably just buy now, today. Then once I had BTC I would park it some place that pays me interest in BTC or even wrap it somewhere. I treat BTC like a savings account that I don't plan on touching for years.
👍  
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@robertandrew · (edited)
- No I don't have any
- Buying 2 or 3 BTC and holding it for long term. Maybe 5 to 10 years. Iam not in to quick trading. If anything I would cash some out in 6 years when my girls start going to college for their room and board etc..etc..

Again the Disclaimer still applies :)
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