Could Cryptocurrency be the last evolution of money.

0 8
Avatar for Idakpabio
3 years ago

When nearly all else fails, Bitcoin could among the last things standing.It is not connected or correlated to stocks in any way.

It does not rely on the financial stability of banks or credit markets.It’s beyond the control of the Fed, the Bank of England, the ECB or the BOJ. And unlike gold, it cannot be confiscated. So even in a financial doomsday scenario, including market meltdowns and bank closures, Bitcoin transactions could continue unabated. In fact, Bitcoin could actually benefit from a massive influx of flight capital.

Look.Everyone in cryptoland remembers that Warren Buffett once said Bitcoin is rate poisoning squared. What they may not know is that he also said … “Only when the tide goes out do you discover who’s been swimming naked.”That could include nonbank lenders who have deep-sea diving into leveraged loans. It could include some of the world’s largest banks who have jumped into a swamp of high-risk derivatives. Or it could even include millions of average investors who have been fishing for anything that can feed their insatiable appetite for better yield. But few Bitcoin investors will be among them, if any. They didn’t buy Bitcoin on debt. Nor are they likely to sell Bitcoin just because other investments are tanking.Plus, they’ve just been through a traumatic bear market.

So, if they’re still holding Bitcoin today, it’s unlikely they’ll be scared away by non-crypto disasters. They know that Bitcoin and stocks are completely different asset classes. They know that high volatility has been a feature of the crypto world since its very beginning. And they even welcome it.

And they know the meaning of HODL — “hold” misspelled — which embodies a golden rule of Bitcoin: “Never sell, no matter how bad things may seem.” And that rule has paid off like none other.Plus, here are a few facts that most people may not know:

Fact No. 1. If you had invested just $1,000 in Bitcoin when it began trading actively on exchanges in July 2010, you would have $100,744,000 today. And that’s despite the fact that Bitcoin is currently trading below HALF its all-time highs.

Fact No. 2. There IS some correlation between Bitcoin and traditional safe-haven assets, such as gold and bonds. So when stocks go down, don’t be surprised if Bitcoin goes up.

Fact No. 3. The King of Cryptos consistently follows its own cycles, and thanks to its four-year halving cycle, they tend to be very regular. 

Fact No. 4. If you could have followed the Bitcoin cycles like our timing model does, you would have outperformed a buy-and-hold strategy 14-fold. Instead of $100 million, you could have turned an initial $1,000 BTC investment into $1.5 billion today.

Can an investor make THAT much money starting today? No. But the profit potential is still off the charts.Just be aware that the Bitcoin halving is fast approaching, and it’s about to drive a whole new bull market cycle.

So time is of the essence.



1
$ 0.00
Avatar for Idakpabio
3 years ago

Comments