Eddie Tofpik Head of Foreign Exchange at ADM Investor Services International Limited in London
Eddie Tofpik Head of Foreign Exchange at ADM Investor Services International Limited in London

Bitcoin, Doomsday Preppers, Grandpa Joe’s Thanksgiving and all in between

When I was kindly asked to write this article I knew what to write but not necessarily the graphic to accompany it.

First Published: e-Forex Magazine 79 / Currency Clips / December, 2017

When I was kindly asked to write this article I knew what to write but not necessarily the graphic to accompany it. I could’ve drawn a rising Chart line but that would’ve been pointless without context. I could’ve superimposed failed rallies in Silver from the late 1970’s (I was there for that at the tail end) or the Tulipmania in 1630’s Netherlands (I wasn’t there for that...plus I think the Dutch might be getting sick of this reference by now) but that would’ve been just optimisation without substance, though I’ve had both mentioned to me as models for Bitcoin. Instead, I made the graphic here to illustrate my story. I wanted to write about how the Bitcoin (& other cryptocurrencies) spread had united buying in such disparate groups as those preparing for the end of modern civilisation (‘Doomsday Preppers’) and the typical suburban family around the family dining table for Thanksgiving. The reasoning is thus – Doomsday Preppers have long loathed ‘government’ in whatever guise it came. They therefore loved Gold and loathed fiat currency and initially Bitcoin as being products of the establishment. However, once realisation dawned that Bitcoin came from the same Libertarian origins they support, buying started - in increasing numbers recently. This buying coincided with a recent surge around the U.S. Thanksgiving Holiday. 

Imagine if you will a family sitting around the table for Thanksgiving, all generations having travelled to be there. Talk turns to how Grandpa Joe had acquired some Bitcoin as a ‘fun’ bet (actually, it could be anyone in the family) and the family talk more for a while before the football starts on TV. Thoughts move on & some decide to buy as a Christmas present or for their own use Bitcoin - in a handy key ring digital wallet perhaps - just for fun. Both these two disparate buying sources see prices rise...and buy a few more...just in case or as ‘gifts’ (you understand). 

This, along with the well-publicised start of Bitcoin Futures has helped the recent boom on top of the usual buying sources such as China, Japan, South Korea and troubled zones from Afghanistan to Zimbabwe.  Where next? Well, with Futures, to some, possibly the most bearish thing to hit the market since the Russian Ponzi scheme, it will be an interesting run to Christmas. Not only for Grandpa Joe but for those in concrete nuclear bunkers.