When the lockdowns began Bitcoin fell over 60% from around $10,000 to $3800. 12 months later Bitcoin has gone parabolic and it has now reached an all-time high of $61000. 20x return in one year. Outperforming any other high growth asset. When the stock market crashed recently, Bitcoin stayed strong. And in the process converting many permabears into bulls. Except for the delusional people (Ahem…Schiff). We have not seen a trillion-dollar asset jump 15% in the blink of an eye like Bitcoin. But can this growth be sustained in the long run?
This one is pretty obvious. The US has minter 1.9 trillion brand-spanking-new dollars. Undoubtedly some Americans will pay their rent, bills, and everyday expenses with the stimulus checks. But a very large percentage will immediately buy Bitcoin or stocks. Why? The last time a stimulus was sent to all Americans an unprecedented growth spur followed. And now American personal savings are at an all-time high as well. Suggesting that only a few sectors got crushed during the pandemic. Most Americans are actually better off. And with hindsight, many will do the obvious thing and make their $1400 into much more. If you had invested the first $1200 stimulus payment it would be worth $10200 today. Absolutely insane return on investment for just 12 months.
You’d have over $10,000 if you bought #bitcoin with your stimulus check.
— $1200 Stimulus Is Now Worth (@BitcoinStimulus) March 10, 2021
Publicly traded companies that hold Bitcoin are: MicroStrategy holds over 70,000 Bitcoin. And they have been buying more and more. Tesla bought around 48,000 Bitcoin this year, making it the largest company to hold Bitcoin. Galaxy Digital Holdings a crypto-based bank hold 16402 Bitcoin. Grayscale Bitcoin Trust has around 650,000 Bitcoins in management. Around 3% are held by the company. Square also holds around 8000 Bitcoin. Marathon Digital Holdings hold over 4000 Bitcoin. You get the point. 18 million Bitcoins are in existence. Every company in the world must buy Bitcoin, to protect itself and its shareholders from asset inflation. The Bitcoin supply is very limited. The Bitcoin demand is infinite. Furthermore, another 41 companies have converted some of their corporate treasuries into Bitcoin. Check this site for the full list.
Pricing in the halving
This event happens every few years. This is when the Bitcoin mining rewards get cut in half. We have witnessed 3 halving events. And we are in the middle of the pricing in of the latest halving event. When the demand for an asset is constant, but the supply gets cut in half this gets reflected in the price. Sure $60,000 is not a small sum of money for Bitcoin. But judging by the past halving events we can say with a certain degree of certainty that more growth will follow. See tweet below:
#Bitcoin after the Halving
Mar. 15, 2021
307 days after the 3rd halving.#BTC at $56,311.
Focus on the long term trend. 👇 pic.twitter.com/F5GCkWG7nr
— ecoinometrics (@ecoinometrics) March 15, 2021
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