1.   It’s the fastest/most secure means of payment between two wallets through what is called the “block chain”

  • The block chain is a form of decentralized technology in which manages as well as records all transactions that take place through mathematical equations
    • This means that all transactions are managed through several nodes within the ledger on the block chain. Not the government.
    • What a ledger does is it distributes & holds info instantaneously across several nodes; in layman’s terms this is like an electronic account book that interconnects all transactions within the block chain within seconds, “instant” if you will.
      • With each transaction that takes place vital information such as price, asset, and ownership are recorded and then settled within seconds across all nodes.
      • This builds both security and sustainability in the long-term vision of this technology
  • Its like using digital cash with no oversight but the recording of the transaction, the only oversight there is the recording of a secure transaction via a computer. No one entity or person. It’s the block chain, which ensures privacy and efficiency.

2.   There’s a finite supply of BTC in circulation

  • This means there is a limited amount of bitcoin available for purchase
    • Not all coins have a finite amount in circulation, for example Dogecoin in theory produces about 5Bn coins/year
    • Speaking in terms of BTC as it’s the focus of this video, there were only 21M mined and there will only be 21M in circulation.
      • Yes, miners are still working at getting the final bitcoin mined into the block chain & the last coins up for grabs will be “minted” around the year 2140, “minting” a coin is a term for when the block chain has validated information being that a new coin was created in this instance.
        • Just food for thought we have a little over 18M BTC mined and a little under 3M to go.
    • So what does this mean considering BTC has a cap on circulating supply?
      • One very important reason is that this means BTC can’t be manipulated by pouring more money into it.
        • Furthermore, BTC cannot be generated outside of what has already been created meaning that BTC can’t become devalued. The price just stabilizes with whatever amount of fiat is circulating within it. Lets say we were dealing with cash, Centralized banks can print more resulting in what we know as inflation. Something the US is well aware of.

3.   BTC is the Wisest investment IMO as it’s become the least risky with the most upside potential

  • What makes it the wisest investment?
    • International adoption is taking place, and its still early on. Bitcoin was launched in 2009 and became available to the general public through various exchanges predominantly Mt. Gox as I’m sure you’ve heard of before
    • Even though this is not an institution, but alike an IPO in this case a CPO when released typically if the coin has a good purpose for its use or it provides a good reason to belong on the block chain the price will reflect that. Over time as the coin evolves and becomes more useful it gains dominance and grows. This is where early adoption is important.
    • More importantly institutional adoption is taking place which will provide us with a solid grounding in that this is something to be interested in.
      • All of this will drive up price
  • I also notice there are ETF’s being built around BTC showing investor interest on a mass scale as well as local interest as well
    • Let me elaborate, for example after conversing here and there over time about the concept of bitcoin with my chiropractor he is now interested in accepting the virtual currency as payment for care. This is wonderful and this is exactly what Im talking about. Real adoption
  • How does it have the most upside?
    • Being that it’s still a new concept
      • This provides massive upside potential for there isn’t a clear understanding of what this security is worth yet which is why it’s also a volatile investment
    • Crypto Mkt Cap is $2 Trillion as of April, BTC making up half of that alone clearly showing favorability.
      •  Since Feb we have moved up 25% in total mkt cap being an additional 400K circulating in the block chain.
        • This is A GROWING RATE OF 150%/Yeaer without accounting for any compound interest
    • USA Market Equity Valuation is $491 Trillion
      • Majority make up of stocks, bonds, real estate, & precious metals
        • Silblisreseearch.com
    • CRYPTO MKT MAKES UP APPROX 4/10 of a percent comparatively
      • If crypto becomes adopted full force with institutional interest amongst other major investment funds this would directly reflect in demand as well as price point for the coin itself.
        • Although market cap doesn’t directly correlate with price it does provide a figure to assist in the makeup of the current valuation.
  • So, what happens when a coin’s market cap goes up?
    • Market cap is determined by the current price X circulating supply
      • Market Cap = Price (X times) circulating suppluy
        • What this shows us is the popularity each coin possesses really
          • If the market cap rises that means that circulating supply is rising and that usually follows with higher demand followed by, you guessed it… higher prices
  • Now let’s imagine BTC mkt cap rises from 1T to 2T
    • History tends to repeat itself
      • BTC mkt cap hit 500B for the first time respectively at the end of 2020
        • It was worth approx. $30K and that’s rounding up because it was a little under that
        • As I mentioned previously the BTC mkt cap is now at 1T being double 500Bn and the price is currently hovering at double what it was being about $60K
      • So as you can see the market cap does reflect supply and demand which directly correlates with pricing.
  • If BTC becomes a major asset class and identified as such, then it would be a safe interpretation in that BTC should steadily rise as mass adoption becomes more realistic
  • How does it provide the least amount of risk?
    • Bill Miller of Miller Value Funds, an institution that beat out the S&P 500 for 14 years in a row has mentioned that the higher the price goes the less risk this security imposes
      • How does this support my idea of it being low risk?
        • It doesn’t necessarily but what it does show is that knowledgeable investors understand that this is a security to be reckoned with.
  • The risk most see with Bitcoin or cryptocurrency in general is that they are so volatile, and I say in rebut… as they should be
    • This is still a new concept being adopted internationally so I wouldn’t expect a hard valuation to be found in the near future.
    • This is good in the bullish perspective as we know that this is a universal product
  • Bitcoin is in the midst of a current identity crisis as it has not been labeled as a specific asset yet
    • Is this money or is it a currency? You use it to compute transactions via fiat currency but for example in japan it’s not viewed as a fiat currency at all. It’s a cryptocurrency! this sounds like a new found form of payment processing if you ask me! So what do we call it? The IRS deems it an asset as of right now and the Commodity Futures Trading Commission views it as a commodity…
    • This can be good and bad
    • In my opinion its nothing to worry about because regardless of what it may be deemed by a governing party that does not mean it will have the same use in another country
      • In other words, do we really see it being classified in a given sector that would prevent growth/prosperity?
        • I don’t think so, regardless of the outcome I believe there will be a way to integrate its existence within our day to day lives procuring dividends for the early adopters

4.   Liquidity within your portfolio

  • Unlike the stock market in which has a Market Maker that creates buy/sell orders with large volume in order to manipulate stock prices
    • This cannot happen with BTC
    • All markets seek to have high liquidity in that you have easy access to your money. This isn’t always the case when supply overpowers demand and vice versa example a RE buyer or seller market
  • With BTC you see you have access to your fiat at a moments notice, you can exchange between cryptos by transfer funds from one to another, conduct transactions and withdrawals all at the snap of your fingers. This is important to even the large investor.
  • All transactions are made with no middle man, no banks, no government so its instantaneous as I’ve described before.

5.   Market Cycles this year is the year for major moves

  • Bitcoin operates on 4 year cycle
    • In 2017 we had a nice jump
    • In 2013 we had a nice jump
    • And now here we are 4 years later 2021 and we are about due for another major move up
      • Where do I think we are going?
        • Id hat to throw random numbers out there but based on all the research I’ve been doing, staying up to date etc.
          • I can see BTC hitting anywhere between 180-220K in this market cycle this year
          • Then after this cycle I can see an easy 1-15M valuation
            • I know that’s super broad but I don’t want to build any expectations for you guys and have you YOLO any of your money
          • Realistically I think a fair valuation by the year 2030 for bitcoin should be 2.5M per coin.
  • Typically with any market cycle there’s your initial rise and fall
    • I like to call this the wake up call
    • Then what usually follows is an accumulation period
      • This is where you buy the dip
        • Crypto moves pretty quickly as we know so during times of accumulation take what you can if youre thinking about stocking up. Because they don’t last long
    • After the accumulation period then comes the final rise which is going to be the largest within that cycle presumably. From past experiences I have seen bitcoin to rise a cool 100% in its final moments of its cycle before having its pullback to accumulation again.
      • Being diligent in observation during the end of the market cycle would be most wise for any of you looking to make the most of your money.
  • I used to think the end of the market cycle would be around the end of July early August but with past performance amongst other ideas I have floating around I have a feeling it might drag out til the end of the year.
    • We’ll see! Let me know what you guys think in the comments below, do you think Bitcoin will keep rising til the end of the year or do you think it will end around the Fall season?

Leave a Reply

%d bloggers like this: