Bitcoin vs Altcoin: James Caw of SimplB Explores the Forces Driving BTC's Recent Rally

From Melania Trump's rumoured crypto ventures to Donald Trump's potential strategic reserve, the conversation dives into the euphoria, pullbacks, and the ongoing Bitcoin vs. altcoin debate.

Bronwyn Nielsen unpacks the latest developments driving Bitcoin’s recent rally with James Caw of SimplB. From Melania Trump’s rumored crypto ventures to Donald Trump’s potential strategic reserve, the conversation explores the euphoria, pullbacks, and the ongoing Bitcoin vs. altcoin debate. Is this the beginning of an exponential rise or just another cycle in the volatile world of cryptocurrency?

Hit the play button below to listen.

Edited transcript of the interview

Bronwyn Nielsen (00:08)

James Caw, SimplB, thank you so much for your time. I’ve been looking at my very modest Bitcoin portfolio and getting incredibly excited – albeit it’s quite small. Give me a sense of whether this rally is driven by Trump-related euphoria. We’ve seen Melania entering the Bitcoin space. What’s driving the price higher? And is this the start of an exponential rally?

James Caw (00:38)

Thank you, Bronwyn. Looking at Bitcoin’s price movements is always fascinating, though understanding exactly what drives the market requires a far bigger brain than mine. What we’ve seen recently is a significant rally, particularly yesterday, largely driven by speculation about Trump announcing a Bitcoin strategic reserve and other crypto-positive developments. Some of these events haven’t materialised yet. For instance, he briefly mentioned Dogecoin, but he’s clearly discussing something entirely different now.

There’s been a lot of excitement around the price movements, but it’s worth noting the fluctuations – from $100,000 up to $108,000, then back down to $102,000. So, the initial euphoria and subsequent pullback have already played out. Currently, at R1.9 million, it’s still a solid price point.

Bronwyn Nielsen (01:31)

Melania transitioning from runway model to First Lady and now into the crypto world – what impact could this have? The excitement around Bitcoin, coupled with the fascination surrounding Melania Trump, might very well create its own rally.

James Caw (01:51)

It’s not necessarily a net negative for crypto or Bitcoin right now. In the business community, we often discuss Bitcoin and cryptocurrency as entirely distinct technologies. The broader crypto space has faced many challenges, which are quite evident with tokens like Trump Coin and Melania Coin. These kinds of projects often highlight the speculative side of cryptocurrency.

I’m not entirely sure how involved Donald Trump and Melania are in launching these tokens – it seems their son might be managing them on their behalf. The key takeaway is that it’s now possible to create a token, sell 20% of it to the market, and achieve a billion-dollar valuation with very little substance behind it. That’s the world of cryptocurrency.

Bitcoin, however, is a fundamentally different, hard asset. While the mania surrounding crypto often spills over into Bitcoin’s price movements, Bitcoin itself remains largely unaffected in the long term. It continues to progress steadily, and I believe we’ll see a full recovery soon.

Bronwyn Nielsen (03:13)

James, let me correct myself. I should have said “crypto mogul” in reference to Melania Coin, in line with the distinction between the Bitcoin and crypto communities. Also, I sense that you might be a Bitcoin maximalist. Is that correct?

James Caw (03:36)

Yes, you’re right. Stafford and I have had a few discussions, and we’re very much aligned in our thinking. While some crypto tokens have utility, the majority are designed to transfer wealth from users to founders. Bitcoin, on the other hand, facilitates peer-to-peer wealth transfer without intermediaries.

Bitcoin operates independently, but the crypto market as a whole goes through cycles. When the Bitcoin economy thrives, it often leads to the creation of new altcoins. These altcoins can destabilise the market, causing downturns. During these tough times, people typically shift back to Bitcoin, leading to a recovery and the start of another positive cycle. That’s the pattern we’re seeing now.

As for Trump, his influence might be beneficial for crypto, but it’s too early to determine whether he’ll have a positive impact on Bitcoin itself.

Bronwyn Nielsen (04:42)

James, we regularly hear from Farzam Ehsani, the CEO of VALR, who has suggested a future price target of $890,000 for Bitcoin – although he hasn’t provided a timeframe. Do you share that perspective?

James Caw (05:00)

Absolutely. I was recently asked on LinkedIn whether I was ready to sell Bitcoin now that it’s hit $106,000. My response was: absolutely not. At under a million dollars, it’s