So at the end of the day IF the SEC approves the Bitcoin ETF's no one actually knows what will happen next, people are throwing all sorts of price predictions from 100k per coin to millions per coin...
This is the one part that is VERY interesting. The ETF will require the institution to hold the underlying bitcoin, so more ETF buying = more bitcoin buying since they will need to go onto the exchanges and buy the BTC to package into the ETF. In the case of previous massive bull runs like Tesla or GameStop if the demand was extremely high the companies did a stock issuance and diluted the shares (created more shares), which is basically what happens with fiat USD when the FED prints tons of money. In the case of Bitcoin that can't happen, theirs no way to print more bitcoin.
So with that in mind, if we look at how much bitcoin is actually available on exchanges to purchase.. its barely 1 million coins. The price per coin isn't set at the TOTAL number of coins, because the total number of coins aren't for sale, its set at the margin, ie what is actually available to purchase. It won't take a lot of money to move this market into the 200k+ per coin. Especially if the craze kicks in and no one is selling their coins.
That's why I'm telling people DO NOT SELL during this bull market, wait 5 years to see how this plays out. Imagine buying TESLA at 2 dollars in the early days just to sell at 20 and thinking you did good.. little did you know it was going to 200+.
Your thinking should be , I want to build a portfolio that builds wealth, I do that by buying things of value and holding them, I only sell if I have a more productive idea to use that value/capital with. If your selling just to convert back to dollars this early in the game well I think you will deeply regret it in 5 years.
As someone who works in finance, it is WILD too see Larry Fink the head of the largest asset managements company "blackrock" say he's bullish on bitcoin, its a flight to safety, digital gold etc etc... honestly I cannot stress how INSANE that is to hear coming out of this mans mouth. Like its a tectonic shift in thinking from him and the larger institution he represents. The wall street wolves are here my friends. The days of the average person buying BTC are numbered.
To close this mini think piece. People are un-able to view the world outside of their own reality . Rich people cannot understand the reality of working class people and vice versa . So let me try to explain the reality of the rich, theirs not alot of assets available to them that preserve their wealth. You can't keep your millions in dollars because inflation will eat it alive, so you pour it into real estate , some into gold, the rest into stocks/bonds. The latter three all have major downsides. Real estate the property taxes are massive and the run costs huge, insurance a bitch , not easy to liquidate. Gold is decent, low return, not really portable , gold mins can always produce more gold. Lastly we have stocks... S&p 500 has historically return 9'ish% , and lets say we take the govs inflation numbers currently at 7% even tho its probably 10% or higher, thats a 2-3% return...
For reference, in the last 10 years, the average annual return of Bitcoin is 71% LOL thats INSANE!!!
Bitcoin people don't get how wild that number is for wall street types. You'd be a hero on wall street if you can get a 20% return on average over 10 years hahaha and bitcoin is strutting around with a cool 71%
so where do you put your money.....Bitcoin...
This is a new asset class to store value, and EVERYONE is going to want a piece of it. Stake your SATS boys...
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