Posted 9 months ago | by Catoshi Nakamoto
Do you or a loved one struggle with chronic Bullishness? Do you find yourself waking up at night and checking crypto market prices? Do you have troubles staying centered because you are always living your life “up and to the right?” You may have a common condition known as “Bullishness” or “Nakamoto Syndrome”. Bullishness can affect anyone who is tired of traditional finance and craves financial independence. There is no cure for Bullishness, but in this video we can give you the best known antidote to make your life manageable: Bullish data and predictions.Read More
Let’s get it.
Welcome to Bit Boy Crypto; home of the bitsquad, the largest crypto community in all the interwebs. My name is Ben. Everyday on this channel I show you how to make money in crypto. If you like money and crypto make sure to hit that subscribe button. In this video we look at some seriously bullish data about Bitcoins potential price movements.
BITCOIN ULTRA MOON CASE
But first I want to remind you that the Bitsquad is about to surpass 5 million followers across the interwebs and when that happens we’re giving away 5 Ethereum and thousands of dollars in other cryptos to celebrate. Click the gleam.io link in the description to enter before time runs out.
Twitter user Log Scale posted a tweet thread the other day that got even the bears more bullish on Bitcoin and the more the data kept coming, the more parabolic things kept looking. It’s no secret that I’m bullish on Bitcoin but this is some next level hopium. Let’s dig into the thread and find out just how big Bitcoin could get during this cycle.
Log Scale started off by giving us some context. This graph from bloomberg showing the some baseline stats for the global financial system. We all see how world governments are addicted to printing money and there doesn’t seem to be an end in sight. Will there be hyperinflation? A period of deflation? Or will there be the worst outcome of all…stagflation? So far the economists are saying that inflation is going to continue it’s run away pace but that narrative appears to be changing to deflation. Either way. The price of Bitcoin is rising as world governments are adding to their balance sheets, or buying debt, as fast as they can.
At some point the plates will stop spinning, inflation or deflation not-withstanding and the house of cards will fall. But notice that pink line on the graph. Between now and 2023 the supply of Bitcoin is going to continue to dwindle until January 2024…the next Halving. When that happens there is going to be some incredible price action. More on that in a moment. I want to go back and clarify a third type of economic situation besides inflation and deflation. There is a thing called Stagflation. What is stagflation? It’s the perfect storm of economic bad news. Rising inflation. Low GDP. High Unemployment. This is real economic pain that can drag on for decades. The 1970’s in the USA saw high stagflation. People where losing their jobs and the price of goods kept going up. It was very bad for the middle and working class.
Back to the thread.
Back in 2008 the Fed started adding to their balance sheet with a process called Quantitative Easing. It grew by 150% in the first few months of the financial crisis and didn’t stop for another 6 years. Well the pestilence of 2020 has the Fed starting another economic intervention and the QE has only just begun. This is only part of what is going on. Interest rates are at all time lows and some economists have even talked about the Fed lower interest into the NEGATIVE. All this means that the turmoil in the economy is going to be incentivizing investors to look for other ways to grow and protect their wealth. That’s where Bitcoin comes into full view. But to get the best view in all of Crypto, make sure to smash that like and subscribe button. It puts you in the Bitsquad and keeps you in the know on the latest in cryptoassets.
The Halving is the single most important thing to understand when it comes to Bitcoin and it’s behavior in the market. The havling means that the reward that miners get for verifying a block of transactions on the bitcoin network is cut in half. The most recent halving was in 2020 which reduced the block reward from 12.5 Bitcoin to 6.25 Bitcoin. Bitcoin is deflationary remember. There will only ever be 21 million Bitcoin ever. The price actions after a halving are intense due to the supply shock. Look at this graph that shows the cumulative return on a Bitcoin investment during the last Halving epoch. Yes that’s nearly 3000%. And where are we now? We’re barely a quarter of the way to the next halving and so far have yet to see anything close to the returns as the last epoch. This all comes down to simple supply and demand. But demand from 2016 to 2020 was NOTHING compared to what it is today.
There is a tidal wave of money headed towards Bitcoin that will dwarf anything that has come before.
For the longest time those of us in crypto have been talking about “institutional and sovereign money” coming to buy some Bitcoin. But that’s only a small slice of the pie. High Net Worth Individuals are only just now getting exposure to Bitcoin but it’s been happening at a snail pace. Even the thought of Sovereign Wealth Funds getting into Bitcoin makes any crypto hater raise their eyebrows…but a pension fund? There are over 49 trillions dollars tied up in pension funds and to date…none of them have exposure to Bitcoin or any Crypto asset. The assets they do hold? Government bonds. But what is a government bond worth if the money the bond is based on is rapidly losing it’s value. The pension funds are risk averse and seeing their returns go into the negative is not something their constituents are going to stand for. Bitcoin could absoltely be an option for the Pension funds to hedge against the destruction of the bond yields in the coming years. The money is moving out of traditional finance now…and it’s only going to accelerate. Of the 88 trillion dollars that is managed for high net worth individuals, only about 5% have exposure to Bitcoin.
We have hardly seen the REAL money flow into Bitcoin yet. Just for reference, Foreign Exchange reserves hold about 3.3 trillion in Gold. For reference the biggest Bitcoin holding to date is Grayscale with…37 billion in Bitcoin. Let that sink in for a moment. World Governments know that the world order is changing and Bitcoin is leading that charge. They are scrambling to make their own digital money but most experts agree that none of them will come close to replacing Bitcoin. There are open conversations now about Bitcoin becoming the world reserve currency in the next 10 years.
Let’s go back to that chart about cumulative halving returns. There is a credible theory that the price run up we saw at the beginning of 2021 was artificial in that it was the perfect storm of people in lock downs, celebrities getting into Bitcoin and stimulus checks. It was a preview of what might happen to the price of Bitcoin and crypto in general if the masses started putting money into it. The regular retail investor. Well the whales saw an opportunity to manipulate so they did and that’s how we got our crash in May and June. But was it a crash? Or was it just the market resetting to where it should have been because the real run up hasn’t even started yet.
Looking at the past…the real gains don’t come until a year or more AFTER the halving. It’s barely been over a year since we had the halving in May of 2020. The bottom is in folks. Bitcoin is moving up. It’s supply and demand. So Dollar Cost Average… Hodl…then sit back and enjoy the view. The moon is coming out.
That’s all I got. Be Blessed. Bitboy out.