First Bitcoin Capital Corp (BITCF)

[planetaryfuture]

Bitcoin-Friendly Mulvaney-Trump-Cabinet-Confirmation Discussed .....

This S.A. opinion piece is older ..... 23-02-17..... in light of cascading Bitcoin news ..... though I felt it was a worthwhile read relative to what we know today about Japan recently legalizing Bitcoin trading .....

Many Investors realize the profound potential of Bitcoin transactions to streamline and clarify transactions while eliminating regulatory hurdles and middlemen standing between the buyer and the seller ..... I sense this decentralized feature of "Blockchain Trading" has the potential to bring our modern global economy to a new level of sophistication ...... speed ..... and clarity ...... Able to eliminate a multitude of structural and predatory dilemmas ...... And I get a strong indication Mr. Mulvaney will agree ......

The Bitcoin process is unfolding as we speak ...... and BITCF appears to have a fabulous "running position" at this juncture of history ..... Currency exchange as it has been known appears to be
facing a formidable ...... yet to be fully understood ...... competitor with the introduction of Bitcoin ..... AND ..... from my perspective ...... the unfolding of the global economy is poised to become the "Big-Winner" .....

Bitcoin And Bitcoin Stocks Move On Director Of OMB Confirmation

February 23, 2017 ..... by Michael Sheikh .....

Mike Mulvaney Confirmation Sparks Move In Bitcoin Price

Approval of ETF catalyst coming on March 11, 2017.

Scarcity of supply driving Bitcoin stocks prices and potential ETF investment.

The confirmation of Mike Mulvaney on February 16, 2017 to the Office of Management and Budget (OMB) is a big shot in the arm for Bitcoin. Since his confirmation there has been more than an uptick in price of Bitcoin and Bitcoin related stocks. Mike Mulvaney a conservative republican congressman from South Carolina is a dedicated Bitcoin supporter and his confirmation as the direct of the budget office can only be viewed as a positive. Mulvaney first went on record in April 2014 to say "Just wrapped up a Small Business Committee hearing on Bitcoin. I know it isn't a mainstream issue yet - and may not become one - but it is extraordinarily interesting and something that could eventually influence the dollar and our monetary policy. In fact, one of the witnesses drew favorable comparisons between Bitcoin and Milton Friedman." Mulvaney also has on his resume the launch of the congressional blockchain caucus. The story doesn't end there is also goes right to the Trump administration. Peter Thiel, an investor in Bitpay and vocal bitcoin supporter who campaigned for Trump during the election is now an advisor. Milo Yiannopoulos, the former technology editor for Breitbart News whose founder has been named chief strategist and Senior Counselor for the Presidency of Donald Trump, is known to be a bitcoiner.

Bitcoin is approaching news highs as investors wait to hear about the pending approval of the Winklevoss Bitcoin Trust ETF (Pending:COIN). The significance of reaching a new high in Bitcoin should not be taken lightly because on average the new high is 3- 10 times higher than the previous one. The way the approval process works is that if the SEC has no further comment by the end of the comment period the ETF can move forward and is essentially approved. This deal has been in the works for over 4 years so there is a lot of anticipation. So every day that we inch closer and closer to March 11th the higher the likelihood of the even happening. The chart below depicts the Bitcoin price in orange versus the Bitcoin Investment Trust (GBTC). Notice the correlation as well as the current divergence in GBTC. Also take note of the uptick since the formal confirmation of Mike Mulvaney. A new high could really propel this stock and others in the sector.

GBTC is a private, open-ended trust that is invested exclusively in bitcoin and derives its value solely from the price of bitcoin. It enables investors to gain exposure to the price movement of bitcoin without the challenge of buying, storing, and safekeeping bitcoins. The BIT's sponsor is Grayscale Investments, a wholly-owned subsidiary of Digital Currency Group. This is the first publicly quoted security to base its value off the price of bitcoin.

This anticipation of the ETF is creating a renaissance in Bitcoin stocks. If the COIN ETF receives approval speculation is that the price of Bitcoin will move significantly higher and that the ETF will need to create a basket of investments and therefore purchase shares in Bitcoin stocks. There are a couple of predictions on the passage of the ETF. Needham has made a call that there is a "25% chance of being approved" while Emerita Capital is coming in at 35%. There are very few pure plays for Bitcoin stocks. Here are some of the key players as well as market capitalization.

Stock

Global Arena Holding (GAHC)

Bitcoin Services (BTSC)

Connexus Corp. (CNXS)

Source: OTC Markets

Global Arena Holding Inc. is a holding and technology company involved in blockchain technology. The blockchain is basically a digital ledger that anyone can add to but that nothing can be removed from creating a verifiable trail of transaction. All these transaction are broadcast to a network of nodes and each node updates its own copy of the ledger with the new transactions.

Bitcoin Services, Inc. is essentially a Bitcoin mining operation. They maintain their own facilities and servers. Their capacity has been increasing as they try to find more efficient ways to mine bit coins and lower their cost of production.

Connexus Corp. has branded bitcoin ATM's back by Mike Tyson's celebrity. They operate around regions of Las Vegas and in parts of California. Increases in Bitcoin price will lead to increased demand and enhanced adoption and distribution of the Bitcoin ATM's. The company is very closely held and only 43 mil shares are in the float per the transfer agent's records. This is the perfect opportunity to get involved since its value is below what the cost of an empty reporting shell.

Future Potential and Price Target

The scarcity component of bitcoin should not be overlooked. Only 21 million bitcoins will ever be circulated. Right now approximately 16 million bitcoins have been mined so as the market heats up it will be harder and harder to mine Bitcoins as the demand continues to soar. The many companies in the private space will also flourish as it becomes easier for them to raise capital and execute their business plans. The Bitcoin ecosystem is depicted in this graphic below and can be lumped into some key sectors. It's not hard to envision that these companies will mature and eventually follow suite into the public markets.

Venture Scanner

Source: Venture Scanner

Bitcoin production is reaching a tipping point. The number of Bitcoins generated per block is set to decrease geometrically by 50% which is the equivalent of 210,000 blocks or ever 4 years. This chart illustrates the magnitude of the reduction of available supply on price. It quite noticeable but that is just half the story no pun intended. The real story is the price impact the ETF would have on the price of Bitcoin.

Source: Coindesk.com

The halving effect is significant but it pales in comparison to the impact of money pouring into an ETF and the multiplier effect. If the $300 million estimated size of the ETF is wrong the price impact could yield a $3,200 price target on Bitcoin.

Summary

There are a lot of factors to consider politics, size of the ETF, halving effect, and overall market conditions. As the deadline of March 11, 2017 approaches without a ruling the stage looks very favorable for Bitcoin price appreciation and Bitcoin Stocks.

https://seekingalpha.com/article/4048953-bitcoin-bitcoin-stocks-move-director-omb-confirmation

Best Wishes