This morning I said that the growth of Bitcoin in the medium term is practically no alternative.
Judging by the questions, not everyone understands - why?
This has been discussed many times; I will briefly formulate the main reasons.
1. Inflation.
No matter what the Fed statistics show, inflation is rising.
Real estate prices speak for themselves.
Prices for almost all exchange-traded and non-exchange goods have increased by at least 50% over the past 10 years.
Even in dollars. In other currencies it is either much worse, or the same, or a little better.
Even something as gruesome as French fries from McDonald’s has increased in price by 134% in 5 years (US data).
So inflation robs everyone. Except for those who bought the right assets and made inflation work for them.
The reason is the obvious overproduction of fiat. Given the Fed's move into a rate cutting cycle and the current situation with US government debt servicing, the issue of excessive fiat generation will only become more acute in the next few years.
And there is less and less Bitcoin available for purchase every day...
2. The attack on privacy, which has been going on for 10 years.
I already told you.
This has now become even more intensified due to sanctions and the fragmentation of the global economy. And this has not yet begun, anything on the Chinese side (but it will, 100%. Now I mean the economic war of the USA and the EU against China).
As a result, in the next couple of years, half the world will be subject to sanctions against the other half.
This is a big plus for Bitcoin and crypto. Since almost everyone will need ways to move and accumulate funds outside the banking system.
3. In the world, on average, no more than 10% of the population owns Bitcoin.
And the capitalization of the entire crypto market is still less than individual large companies on the American stock market. Now, judging by Google trends, mass interest in crypto has not yet arrived even in the United States, not to mention countries with a rapidly growing population (SEA, Africa).
They will all come to the market and bring money (fiat), of which there is more and more. And there is only less Bitcoin available.
4. Considering points 1-3, large players have entered Bitcoin and have the resources to buy the entire crypto market several times. They concentrate large reserves of Bitcoin. And obviously not with the goal of earning 20-30% profit from it).
And Bitcoin, which is available for purchase, is becoming less and less every day).
I repeat this phrase not because I forgot what I said in the paragraph above. But because it is most important for understanding the situation.
These are global reasons. They are not affected in any way by the sale of Bitcoins by mt.Gox, nor by sales from the US or German government, nor by Gensler’s latest intellectual excesses. Neither the growth of Bitcoin to 100K, nor the fall to 50K, will in any way change or cancel these reasons.
Consider them when making strategic decisions.
What do you think??
