Bitcoin: 8 Key Points to Keep in Mind on the Path to $100,000
1) Digital Faith: Imagine a network of believers, hundreds of millions of people connected with varying degrees of conviction. From tens of thousands of fervent fundamentalists to hundreds of millions who associate Bitcoin with a powerful triad: cryptocurrency, digital gold, and blockchain. This potent association resides in the minds of over 20% of the world's population, making Bitcoin a force as influential as the Vatican in terms of its cultural impact.
2) Immunity to Inflation: A decisive factor that enhances Bitcoin's appeal is its immunity to inflation. Picture these 0.00001 coins as coveted specks of rare gold, long mined and precious. This "digital gold" is relentlessly pursued not only by small speculators but also by major institutional investors.
3) Game of Big Players: Such faith, coupled with the promise of inflation resistance, inevitably attracts big players who seek a different level of liquidity. Their strategies may vary, from capturing mining power to acquiring stacks of coins from early adopters to market price manipulation. The real game is shaping the price chart according to their centralized interests. Under favorable international circumstances, they can divest themselves of complete emission control. They simply need to execute effective global marketing using events similar to crises in traditional financial institutions. As confidence grows, so does the value, making $100,000 an achievable milestone.
4) The Great BlackRock: Let's not forget institutions like BlackRock, which essentially serve as market makers in the global financial world. Their entry strategy goes beyond the $5,000 range for Bitcoin. Instead, they envision a broad spectrum ranging from $10,000 to $20,000, targeting long-term growth milestones of $200,000 to $800,000. Thus, their investment zone lies within the range of $17,000 to $30,000, where they could accumulate reasonably over a period of 2 to 3 years by crypto industry standards.
5) Rise of Retail Investors: Retail investors, totaling 300 million people familiar to some extent with the concept of blockchain, complement the big players. Considering global turbulence and growing distrust in central banks, the final potential figure could encompass 3.5 billion people, each seeking to allocate at least 5% of their savings into Bitcoin and related cryptocurrencies. With this optimistic forecast, it is quite possible that we will witness Bitcoin, following the teachings of Balaji S. Srinivasan @balajis, reaching the $100,000 mark within 2 years.
6) Generational Shift: Imagine a world where sixteen-year-olds no longer seek the services of traditional banks like HSBC or even digital newcomers like Revolut. Instead, they are drawn to #TrustWallet, digital relationships free from rigid governmental frameworks. Add to this picture the two billion people in developing countries who are increasingly attracted to the appeal of "digital gold." These half a billion young minds demonstrate a growing distrust in traditional banks. Given the limited supply of Bitcoin (only 21,000,000 coins that will ever be in circulation), we are talking about less than 4 million coins minus lost + redeemed in a long-term hold. This means less than 0.1 BTC for each millionaire worldwide. Now consider the annually growing young generation of these millionaires who are not interested in conservative investments like physical gold.
7) A New Chapter in Global Finance: As we experience this pivotal moment in history, the world is entering a new phase of transformation. We are witnessing the simultaneous decline of outdated systems, inefficient by modern standards, and the recalibration of strategies to create the next $100 trillion of global GDP.
8) Time of Change and Opportunity: Truly, it is an interesting time, a time of transformative power. The tectonic plates of the financial world are shifting: traditional banks are faltering, and the national debt is growing. Many realize that after the first, second, and third financial shocks, a fourth, similar one is inevitable. But history teaches another lesson — that the fundamental dynamics of economic systems evolve over time. Within this shift, we could witness a radical change in the parameters of our modern economy. Perhaps the day is not far off when the crypto part of your default portfolio will surpass the traditional and conservative part. It is a quietly unfolding revolution that demands our attention and participation.
Thank you for reading this research.
It's not a financial advice.
Follow us on Twitter: @ax1vc