4/08 ANDY HOFFMAN (CryptoGoldCentral.com): What Breaching the “Hoffman Line” A Second Time Will Mean

In October 2017, a week BEFORE CNBC’s Brian Kelly said a “wall of institutional money is headed for crypto,” I wrote of the price explosion that would occur if Bitcoin’s market cap exceeded the “magic number” of $100 billion – which at the time, equated to $6,000.

https://cryptogoldcentral.com/2017/10/20/the-6000100000000-magic-numbers/

To wit…

“In passing $6,000, as Bitcoin just did, it’s market cap officially passed the ‘magic’ $100 billion level. Above this level, every billionaire, institution, municipality and sovereignty on the planet is fiduciarily enabled – in some cases, mandated – to invest. In other words, Bitcoin just became an ‘official’ asset class. As they say at the racetrack, “Gentleman (and Danica), Start your Engines!”

Given its revolutionary nature; and limitless potential use cases; the institutional investment community flew in – recklessly, to a sector ill-prepared for such massive demand, in terms of both liquidity and infrastructure…which got MUCH worse in January, when hundreds of crypto hedge funds launched, buying every illiquid, pump-and-dump altcoin they could find.

Consequently, the inevitable price crash, followed by a year-plus bear market - that bottomed in December, and just now is showing signs of a genuine return of capital. This, as the “Hoffman Line” – now, at roughly $5,675, rapidly approaches.

Back in October 2017, institutional crypto interest was pure speculation, with the same “infinite expectations” as the internet in the late 1990s - in many ways, paralleling the experience of the dotcom bubble perfectly; i.e., textbooks example of the “madness of crowds” and “Human Nature 101.” However, like the post-dotcom world, the post crypto-bubble world is if anything, MORE optimistic than before. Only this time, expectations will be more rational, and investors more educated and discerning.

The way I see it, crypto’s outlook is so powerful, an upward breach of the “Hoffman Line” is inevitable. Frankly, the only way it can be averted is if something catastrophic occurs to Bitcoin – which in my view, is as close to impossible as you can get. Sure, Bitcoin faces significant obstacles to widespread global adoption – like inertia, and technological advancements like MimbleWimble. However, the sector cannot be stopped from growing – and Bitcoin, whether it dominates as much as in the past or not, will only grow larger.

Yes, “technical resistance” at this level will be stiff – but more so, psychological resistance of the key round number separating Bitcoin from being a mere financial curiosity and a major asset class. However, any person or institution considered “smart money” knows what I, and you, already know. Which is, that crypto is so superior to current monetary and transactional technology, it MUST succeed.

In other words, I believe a second, FAR more important break above the Hoffman Line is inevitable – at which point, both Bitcoin and altcoins will enter bull markets far more powerful, lengthy, and world-changing than late 2017-early 2018.