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Tone Vays was originally from Wall Street where he worked for the big names financial institutions such as Bear Stearns and JP Morgan Chase. Tone is, without a doubt, one of the most well-known and well-respected figures in the crypto-community. His unique trading style involves using the TD Sequential Indicator, and having a realistic outtake on the Bitcoin price coupled with a hatred of Altcoins are his trademarks. During the Crypto Asia Summit 2020, Tone took an interesting step by shying away from his usual technical analysis and presented his view on Bitcoin fundamentals and the unique properties which struck his attention and pulled him towards the world of decentralization since 2013.
Tone kickstarted the show by mentioning that he first heard about Bitcoin back in December 2010 and expressed his regret of not buying some then. The analyst then brought us to the Silk Road, darknet underground online marketplace, where Bitcoin found its first use case in 2011 as the ‘uncensorable’ medium of exchange. In 2013, Tone rediscovered Bitcoin during the financial incident in Cyprus where the government shut down all bank accounts and put a 50% tax on every account with a balance of more than 100,000 euros, robbing savers of their own money. The unfortunate event brought Bitcoin’s property of being ‘unconfiscatable’ to Tone’s attention right away as it is the first asset class where owners have full control over what is rightfully theirs.
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He furthers went onto another core property of Bitcoin as an ‘uninflatable’ asset with a limit supply, where he quoted from the book by Saifedean Ammous, The Bitcoin Standard, as follows:
“For every other money, as its value rises, those who can produce it will start producing more of it. Whether it is Rai stones, seashells, silver, gold, copper, or government money, everyone will have an incentive to try to produce more.”
“Bitcoin being hard money with limited supply is what made it fundamentally different from any other money,” Tone noted.
The analyst also highlighted some of the issues that Bitcoin is facing, such as scalability and privacy concerns which are currently being fixed by second layer solutions and soft fork upgrades. However, he pointed out that the price volatility and coin security are the issues waiting to be solved either by Bitcoin becoming mature overtime or providing a more user-friendly way of storing Bitcoin safely.
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When asked about his opinion on the mid-march crash, Tone answered that he does not have a definitive answer but he still believes that Bitcoin is still somewhat correlated to the stock markets, and is thus affected by similar COVID-19 worries.
“Crashes do not happen when catalysts occur, crashes can happen when no one wants to buy at that moment in time thinking the price is going up,” Tone explained.
However, he revealed that he suddenly became a bull the day after the price crash after being a bear on Bitcoin price since the blown-off top in early 2018.
Moreover, when an audience asked about his analysis of the current state of Bitcoin price, Tone said that he is still bullish at the moment and we are currently sitting below a resistance level of $10K.
“The breakout above this psychological resistance will send Bitcoin to $12K level fairly quickly,” he clarified.
Tone Vays is currently traveling the world, educating people about Bitcoin. He holds many conferences throughout the year and hosted a regular technical price analysis on his YouTube channel.
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