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There are serious issues preventing Bitcoin from doubling like we've seen many times before, this time up to 40k, 80k etc.
Apologies in advance to the bulls.
Let me break down these concerns.
My 3 issues are ranked from least concerning to most concerning.
Apologies in advance to the bulls.
Let me break down these concerns.
My 3 issues are ranked from least concerning to most concerning.
The market cap (value the market) of Bitcoin is huge.
335 billion dollars.
Double that to 700 billion dollars ($40k price of BTC) and Bitcoin becomes more valuable than Alibaba or Facebook.
335 billion dollars.
Double that to 700 billion dollars ($40k price of BTC) and Bitcoin becomes more valuable than Alibaba or Facebook.
Here's the top 13 companies in the world by market cap.
They have assets, earning reports, tech in development. It makes them easy to value.
It’s harder to pin down the value of Bitcoin. You could say it’s basically worth as much as what the other guy is willing to pay for it.
They have assets, earning reports, tech in development. It makes them easy to value.
It’s harder to pin down the value of Bitcoin. You could say it’s basically worth as much as what the other guy is willing to pay for it.
Despite BTC being a "currency" and these above being companies, it does go to show that there could be serious psychological ceilings for BTC relatively close.
Why?
Simply because its value is entirely speculative and based off nothing more than what the next guy wants to pay.
Why?
Simply because its value is entirely speculative and based off nothing more than what the next guy wants to pay.
As a result...
It has unlimited upside AND unlimited downside potential.
But that also means here that people may start getting discouraged from buying it.
It has unlimited upside AND unlimited downside potential.
But that also means here that people may start getting discouraged from buying it.
More importantly than that tho,
Futures trading plays a big part role here.
That's because you can now make money in BOTH directions.
Up and down.
Coincidentally, futures trading for Bitcoin started at the top of the bull run at the end of 2017.
Futures trading plays a big part role here.
That's because you can now make money in BOTH directions.
Up and down.
Coincidentally, futures trading for Bitcoin started at the top of the bull run at the end of 2017.
When it did, people sold and made a LOT of money on the way down.
That still plays a big role now and could definitely stifle BTCs progress moving forward because of people wanting to short it and make money off BTC trading lower.
It's already happened. A lot.
That still plays a big role now and could definitely stifle BTCs progress moving forward because of people wanting to short it and make money off BTC trading lower.
It's already happened. A lot.
But finally, my biggest concern is quite unexpected for most people.
It's mining rewards.
900 Bitcoin currently get mined every day.
At current prices that’s ~$18M worth being added to the supply, daily.
It's mining rewards.
900 Bitcoin currently get mined every day.
At current prices that’s ~$18M worth being added to the supply, daily.
You need increasing demand to keep up with the increasing supply JUST to keep it stable. That type of "equilibrium" is never sustainable.
At 40k, mining rewards double to ~$36M daily, or ~$1B per month.
These are huge numbers that BTC would need to meet on the demand side.
At 40k, mining rewards double to ~$36M daily, or ~$1B per month.
These are huge numbers that BTC would need to meet on the demand side.
Failing that would risk big crashes.
And so that puts us in a sticky situation where it's growth is almost just it's undoing, too.
I definitely think BTC can still keep shooting up but keeping these factors in mind WILL also show you how it's not as rosy as it sometimes looks
And so that puts us in a sticky situation where it's growth is almost just it's undoing, too.
I definitely think BTC can still keep shooting up but keeping these factors in mind WILL also show you how it's not as rosy as it sometimes looks
Overall Bitcoin throughout time is becoming less aggressive.
The market is maturing.
Check out my latest video as I explore all this in more detail.
The market is maturing.
Check out my latest video as I explore all this in more detail.
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