Bitcoins’ current price is above $60000. Making the cryptocurrency more valuable than the 3 largest banks in the world combined: JP Morgan, Bank of America, and ICBC! And the price is going up without resistance. Even with a market cap of over $1 Trillion 15% moves are common for Bitcoin. But conventional wisdom says that no asset can go up forever. And that might have been true before Bitcoin existed. But this new asset class is completely rewriting the rulebooks. Here is why 2021 will be a huge year for Bitcoin, Ethereum, and other cryptocurrencies.
Institutions are buying hard!
Square, Paypal, MicroStrategy, and now the 8th biggest company in the world-Tesla are some of the big players buying every Bitcoin they can get their hands on. In fact, institutions are buying over 9000 (ba dum ts) coins per day. To put this into perspective only 900 new coins are mined per day. The price follows supply and demand. One way we can conclude that institutions are buying Bitcoin is the number of Bitcoins leaving exchanges. This is because institutions buy from OTC markets or over-the-counter markets. And that is because buying billions worth of Bitcoin will move the price considerably. Buying off exchanges allows them to buy as much as they want without sending the price into the stratosphere.
Furthermore, Tesla just got a cool $1.5 billion in Bitcoin. And within three months Tesla has doubled their investment. Which makes Bitcoin more profitable than Tesla actually selling cars.
Tesla Invests $1.5 Billion In Bitcoin
Inflation, Inflation, Inflation
Joe Biden said the $1.9 Trillion stimulus is only the beginning. Another 2 or 3 trillion dollars is going to be injected by the new administration. Today asset inflation is over 10% in the US according to the Chapwood Index. Asset inflation is assets getting more expensive compared to the dollar. The more dollars printed, the higher Bitcoin goes. Very simple. And the FED just put a turbo on the money printer. Plus interest rates are going up no time soon. The value from the appearing from nowhere and imaginary dollar is being transferred to Bitcoin. And is happening every day,
The favorite pastime for Bitcoin enthusiasts. Buy and Hold. And never sell. Additionally, crypto enthusiasts know exactly what Bitcoins’ potential is. This mentality will get passed on to everyone who gets involved. There is only 0.45 Bitcoin per millionaire or 7344 Bitcoins per billionaire. Unlimited money printing is like a virus spreading. Bitcoin is the vaccine! This is the Bitcoin HODLer mentality. Furthermore, the number of Bitcoin active addresses is rising. At a predictable pace.
Combine all of that with more profitable mining. And the system gets better the more people investing in it. And, of course, the halving. Only around 300 days have passed since the last halving. The day miners rewards get cut in half. If we take the same returns after the previous halving. And apply it to today’s prices. BItcoin might appreciate to $200,000. And consolidating there. Considering getting involved yourself? Check out this investment calculator to see the real returns of the most popular investments.
If You Have Decided To Finally Frontrun 99% of Everyone On Earth And Get Bitcoin, Use The Biggest And Best Crypto Exchange: Binance. Scan The Code Below Or Press On The Image, Register And You Will Receive 5% Cashback From Binance. FOR LIFE! This Offer Expires Soon!
Sign up for Coinbase by clicking here, buy 100$ of cryptocurrency and you will get 10$ for free.
Disclosure: The author has a position in Bitcoin.