How many people in the world are using Bitcoin or cryptocurrencies and why?

For years I’ve been asked this question and many like it. Why would anyone trust Bitcoin? Why would you think Bitcoin would have value when it cannot be “backed” by anything tangible or a government? Why would I put money into a currency that has already grown over 35,000% – haven’t I missed the boat? What happens if someone hacks “it?” Can someone get their hands on our money? How can you protect against risk? WHy do people call it “the new gold” or a “store of wealth?”

In 2011 I had all these same questions. And all of them are valid………… – at first.

Rogers Adoption of technology Bell curve is familiar, but can you find where 1.2% of the population falls?

Let me back up. Here we are in the early stages of the 4th “Crypto Spring & Summer” as it were, since Bitcoin launched in early 2009. AND still today, it’s nice to see so many people who have an open mind and questions about something that is still so new, “unproven,” or mass-adopted yet. If you are asking any of these questions, then you, my friend, are already far ahead on the technology adoption timeline than 98% of all others.


I’ll share what I’ve researched and also an article to help answer your question. 
In 2011 I invested in a technology incubator that was going to launch young tech startups into the stratosphere. The day I sat down to cut the check, one of my partners told me to put that money into Bitcoin rather than our incubator. That measly $20,000 would be worth $29,330,400 in 2017 or 2020 Bitcoin dollars. The incubator became a non-profit and my 20k is worth zero. Do I still get to help young entrepreneurs launch their tech companies? Sure, and I enjoy it. Yet, since that day, I waited and waited and waited some more (“Oh, once it get’s back down under$250 I’m in” I said) and waited some more.. to finally buy in after watching it cross the $1,000 dollar mark. My belief each time I did not buy was that I had missed the boat or that surely it was volatile enough to get back down to my ideal price point – where I thought I “Deserved” to buy it after all my years of following along without it. What I did not get through my skull is that it is an algorithm; a transparent, immutable, hack-proof algorithm. It cannot be changed, or artificially inflated (well, maybe unless your are Jamie Dimon*).

The biggest reason it’s value will continue to increase over the long term is because that algorithm has a stopping point. It ends. It stops producing blocks at 21 million. That limited number which cannot change (or be increased or devalued by printing more) creates a natural inflation. It creates a genuine need-based inflation and thus a true value. As you and I both know, The value of anything we wish to barter is based only on the value we assign it. If I’m starving in a desert with only a gold coin in my pocket and you are the only person in site and you have a banana, then to me I guarantee you that your banana is worth my gold coin. This is where the value of FIAT which is assigned a value by a third party begins to fall apart. This is why cryptocurrency will eventually replace most Fiat’s at least for progressive people and those forced to by their corrupt governments (can you say Most every country), but these topics are for another day and a longer forum. I’m posting this on my own blog shortly with more detail and an ongoing forum, but I’m glad that you got me thinking and willing to share. You may never find a use or a need personally. But if you live beyond the next 8-10 years you will at least witness a large adoption and a plethora of use-case scenarios whether it’s strictly in Bitcoin or in similar cryptocurrencies that have proven themselves in their own use cases. It’s like witnessing the explosive growth of the internet since 1992, and at this stage we are in now it is like discussing (and projecting the growth of) the internet in year 1993. We are in 1993-1994 right now. Do you see the Rogers Adoption of technology Bell curve diagram above? Do you see where a delineating inflection point at 2.5% of the population sits? Good. Now think about this. Only 1.2% – 1.3% of the connected world are involved in any cryptocurrency right now.** We all still have time, not much, but time, to fall in that 2.5% or that early adopters range. Remember that when you think you waited too long and when you have that $100 you might blow on some bike part or nice dinner, or shirt you don’t need. Investing in crypto is becoming increasingly popular, and finding the best crypto exchange to trade on can greatly impact your investment success.

I look forward to looking back on these discussions a few years from now (differently from how I look back on my 20k mistake 8 years ago. 
I will gladly share more of my knowledge on cryptocurrencies and how it is already changing the world. Like dollar inflation since 1971, it is already happening. – Nelson Wells, Athens, Georgia . For more follow me here and on Twitter at @Clermont1

Bitcoin Users At a Glance

  • Over 42 million bitcoin wallets had been set up globally by Dec 2019
  • An estimated five percent of Americans hold bitcoin
  • There are 7.1 million “active” bitcoin users
  • Leading exchange Coinbase has over 13 million users
  • Emerging markets users, who are often not considered in statistics, are
    likely in the millions

Nelson Wells is a CEO, a publicist, and a contributor of cryptocurrency articles from Athens, Georgia . For more follow him on Twitter at @Clermont1

US Marshals to auction 4,041 Bitcoins. Whales-only apply…

Yes, it’s true. Anyone who wants to can get in on some Bitcoin at a potential giant discount to market. Well… only those with already deep pockets, that is.

Here’s what the US Marshals .Gov site posted just this week.

Washington – U.S. Marshals Holding Bitcoin Auction
Approximately 4,040 bitcoins to be sold. $200,000 deposit required by Feb 12, 2020. Contact U.S. Marshals Office of Public Affairs (703) 740-1699

That’s right, The U.S. Marshals are auctioning approximately 4,040 bitcoins “in connection with various federal criminal, civil and administrative cases” their press release reads.

In order to bid, potential bidders must complete all registration requirements by Feb. 12 and submit a $200,000 deposit (in U.S. dollars of course) which is required to simply participate, though all bidders except for the winner will have their deposits returned according to the release. Pre-registered bidders are the only ones whose bids will be accepted, and those bidders will be a part of a 6-hour “Sealed-bid” bidding session on February 18th.

According to the USMarshals.gov site, the winning bidder will be notified Feb. 18, also implying that only one bidder will win and thus there is only one Lot consisting of all 4,000+ $BTC up for auction. #Hodlers of #BTC during the climb of 2017 may remember other US government auctions of seized Bitcoin, all but solidifying that the #cryptocurrency was legitimized by the US Marshals and more importantly by the Internal REvenue Service (#IRS) simply by the nature of a government entity selling and receiving US dollars for the asset. Here again, and recognizing that the IRS has since 2016, offered taxation guidelines for owners of the currency to submit taxes on profits, the crypto seems to be legitimized as a tradable asset in their guidelines and dockets.

Further details on the auction are available posted on the site and in the press release at www.usmarshals.gov/assets/2020/febbitcoinauction. According to the site, the Department of Justice Asset Forfeiture Program is a key component of the federal government’s law enforcement efforts to combat major criminal activity by disrupting and dismantling illegal enterprises, depriving criminals of the proceeds of illegal activity, deterring crime and restoring property to victims. The U.S. Marshals Service plays a critical role in identifying and evaluating assets that represent the proceeds of crime as well as efficiently managing and selling assets seized and forfeited by the DOJ.

Now, it seems to us there are just a few more questions that arise here than are answered.

  1. Does the IRS, thus the US government still consider Bitcoin an asset?
  2. Does the one-bidder-takes-all model seem fair to you or average US citizens or does it favor hedge funds, whales, and institutional money only?
  3. Should the auction be broken down into varying lot sizes allowing for average retail consumers to be a part of a government auction, one that their tax dollars help fund?
  4. … more question below, but first…

We’d love to hear your thoughts. Noting some of these concerns however, in a more detailed read of the most recent updates on the site, it turns out there are 4 total lots up for auction, each of varying size. AND, to the sured delight of the #twitterati and the #cryptotwitter followers, WHERE and WHO each of these lots was seized from is now listed on the US Marshals site (and below).

FEB 18 AUCTION includes seized assets as outlined below:

DEA Forfeitures

United States v. Tyler Lee Ward et al., (Case No. 18-cr-438)
United States v. Ryan Farace (Case No. 18-cr-00018)
United States v. Matthew Lee Yensan (Case No. 17-cr-00303)
United States v. Alexandre Cazes, et al., (Case No. 17-cv-00967)

FBI Forfeitures
United States v. Ronald L. Wheeler, III (Case No. 17-cr-377)
United States v. Konrads Voits (Case No. 17-cr-20689)
United States v. Seth Bangert (Case No. 19-mj-00073)

HSI-USCBP Forfeitures
United States v. Donte L. Gibson, et al. (Case No. 18-cr-094)
United States v. Gal Vallerius (Case No. 17-cr-20648)
United States v. Darcy Wedd (15-cr-00616)
United States v. Sky Justin Gornik (17-cr-2796)
United States v. Matthew Mulford (Case No. 19-cr-028)

This sealed bid auction for 4,041.58424932 Bitcoin separated into four series: 

Series A (5 blocks of 500 Bitcoin) and 

Series B (10 blocks of 100 Bitcoin) and 

Series C (10 blocks of 50 Bitcoin) and 

Series D (1 block of 41.58424932 Bitcoin). 

You will not have the opportunity to view other bids. You will not have the opportunity to change your bid once submitted.

Final questions for this reader…

4. If the deposit was not a concern, would you buy Bitcoin from the U.S. Government? If so what’s the right amount, or too much?

5. Is this yet anothe rway for the US Gov to make money at the ‘expense’ of its people while making it harder and harder for US citizens to own, purchase or pay taxes on the same asset?

6. What questions does this all bring up for you, good Hodler?

  • Nelson Wells is a CEO, a single dad of twin daughters, a cryptocurrency hodler, a believer in the long term world-redefining power of blockchain. Reach out & follow him at Clermont1

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