Bitcoin (BTC) has just passed the 1 Trillion Dollar mark!
A major flippening has happened within the last 48 hours and a popular investing website has made a 180 degree reversal on its opinion of Bitcoin (BTC). Microstrategy is into BTC again and the new favorite to hate Robinhood, changed its platform into being more of a crypto-friendly.
If you have been following the traditional market, of course you wil know that Bitcoin is pumping and gold is going down. Even though inflation fears are rising and gold has been in the past, traditionally the world's best store value, it is having a hard time making new all-time highs while Bitcoin is consecutively breaking its all-time highs.
If you just look at the numbers, Bitcoin is up 80% since January 1st of this year while gold is down -7%. A lot of people speculated about why this is happening. It would looks like a macro events, like the collapse of the financial system and inflation, would benefit both Bitcoin and Gold. But Gold goes down and Bitcoin goes up.
One reason of Bitcoin's growth could simply be is that Bitcoin (BTC) has a lot more room to grow compared to Gold. Most people who will ever own gold, they already own it and while a few percent of the world's population owns crypto as these new buyers step into the cryptoverse, they are driving up Bitcoin's price.
BTC is a growth asset and as more people realize that, the trend higher in price just accelerating.
If you are thinking that Microstrategy had already bought so much Bitcoin that they would not possibly buy any more of it, well, you're wrong.
Micheal Saylor is back in the buying market and this time he's offering up a $900 million convertible note, which will be used to buy Bitcoin (BTC).What this means is Micheal is selling an IOU, which is the note, for a promise to pay back the principal and interest worth of equity in Microstrategy. This means investors can get exposure to Bitcoin without taking on the risk of holding the asset themselves by investing in the company that holds it on their balance sheet.
So here's what I think is so interesting about this latest offering. When Saylor first made the announcement, the plan was for a $600,000,000 offering. Seeing it get bumped up to 900 million within a few days means the investment market is hungry for Bitcoin.
Second, look at the interest rate on this note - It's 0%.
The only way that Michael Saylor could offer 0% note is that if there is so much demand that makes investors want to get in.
The whole episode is just more evidence of being extreme demand for Bitcoin in the marketplace. One of the emerging themes of 2021 is the wave of investors and institutions who are changing their mind about Bitcoin and cryptocurrency.
Howard Marks, Mark Cuban, Ray Dalio, JP Morgan and even Bill Gates. The list goes on and on and the newest entrant is none other than The Motley Fool, which is one of the world's largest websites in the world that provides investing advice.
Now, way back in 2013, Motley Fool ran an article with the title "Why Bitcoin is a horrible investment idea". Fast forward until just last year and they even doubled down and consistently have to write Bitcoin as not a good investment. Well, it seems like they've changed their mind and a few days ago Motley Fool announced that they are buying five million dollars worth of Bitcoin and that they believe Bitcoin is now a valuable asset to protect against inflation.
NFT Adoption
NFTs are set to be on a rampage in 2021. These digital tokens became popular with enthusiasts since Crypto Kitties had exposure in the late 2017, but we have already reached that point where a niche cultural FUD is now going mainstream.
The bespoke auction house Christie's is going to sell an NFT for the very first time in history. It's a digital collage done by an artist named Beeple who last year made millions of dollars selling some of his own NFTs. I think this is a really big deal for two reasons:
1. It legitimizes NFTs a real type of artwork. A lot of people have questioned how art that's 100% digital can have any value. It's a tough concept to wrap your mind around but if Christie's is getting involved, it shows that NFT's are the real thing.
2. This auction shows how crypto culture is going mainstream. Crypto is breaking out of the box and finally getting the recognition that it deserves.
Robinhood now allows cryptocurrency withdrawal.
For years, one of the biggest bad thing about Robinhood's crypto platform is that they didn't allow their users to have a withdrawals. A great key advantages of crypto is that users can control their own money. They can send their own crypto to anyone and no one can stop them.
None of that applies if you are just holding your crypto with Robinhood though. Remember, not your keys not your crypto.
And the fact that Robinhood is going to finally allow crypto withdrawals is a pretty big deal because it increases the surface of potential investors who can now truly own their crypto. This decision by Robinhood has also puts a lot of pressure on the other platforms like PayPal to do the same thing.
We ARE already in the adoption.