This is a transcribed excerpt from the “Bitcoin Magazine Podcast”, hosted by P and Q. In this episode, they are joined by Sam Callahan to talk about the top three reasons he is bullish on bitcoin, even in the depths of the bear market .
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Sam Callahan: The hash rate hitting an all-time high is definitely positive. I really think it’s a function of those miners throughout 2021 who have had access to capital and they’ve basically been able to have a bunch of capital expenditures and decide they’re going to expand their facilities. And so what we’re seeing now is that these plans are starting to show up and they’re actually plugging in the miners that they planned 9-12 months ago.
There were also supply chain issues. So this increase in hash rate, I think it’s more just those big miners finally getting their stuff online, rather than more miners flipping or so to speak. So it’s a good thing for the Bitcoin network. I think you’re seeing the total supply held by long-term HODLers hitting an all-time high, which is another positive development.
I think it just goes to show that there is a doomed base of HODLers who aren’t moving their pieces and that’s probably everyone on this call right now who is part of it. The other thing is that there is still institutional interest in this bear market. Compared to 2018, there weren’t really those developments in the lower end of the bear market, it was really quiet and it was kind of sad. Now you have news, like Fidelity coming out and planning to offer bitcoin to millions of individual brokerage accounts. You also have Franklin Templeton – almost like a trillion dollar manager – still in the middle of the bear market with bitcoin down 70%, they are still building infrastructure for the next bull run.
So that’s bullish for me. It just goes to show that even despite the price action, there is still excitement and interest at the institutional level and the infrastructure is being built. It’s the kind of thing I like to see.
Those three things are probably what I would say: record hash rate is good; miners sort of stop selling or at least for now; you have long-term HODLers holding their own, then you have institutional interests. So those three things are bullish developments. I’m excited about this.
