Bitcoin whale clusters show ‘institutional FOMO’ is behind the BTC rally – Bitcoin is currently a guppy in a sea of whales; at any point, the price can be thrown around with a relatively small amount of money. To put in perspective, the Bitcoin market capitalization is roughly 1/100th of the S&P500 (All US stock exchanges). Over the coming years, as more money/liquidity enters this space & the market matures, it only makes sense that Bitcoin will become far more stable.
I agree with article; I think this next bull run will be incredibly stronger than the last. It’s going to be absolutely historic. It will dwarf the dot com bubble. Future historians will be captivated by it- The transition from government money to internet money. We are heading into unknown territory & very interesting times.
We are still extremely early though; don’t be surprised if Bitcoin rallies to 28k then crashes back 16k (Just an example). History shows us, ~40% drops at the start of a bull-run cannot be disregarded, so make sure to not get shaken out early before the massive pump to a couple hundred k. This ‘institutional FOMO’, is still so early. Bitcoin at $1m a piece is still early. Bitcoin just keeps giving people chances to get wealthy. Personally I don’t think this will be a winner takes all, however I think the ‘Bitcoin/crypto’ market is a zero sum game to fiat. Bitcoin will most likely take a large percentage of the market in the future, however one thing will always be certain – competition. Personally I don’t think any of the alts will ever truly compete with Bitcoin’s value, although I can’t see alts disappearing.
‘Hyperbitcoinization’ is a term that essentially means Bitcoin swallows everything. Personally I don’t thing this is entirely feasible; however if it were, 1 Bitcoin could reach $100m a piece (or the equivalent value at the time). If you assume that Bitcoin just maintains it’s market-share over the years, that’s still a massive rise. In the future, it won’t matter though; sats will be the standard – 1 BTC = 1 BTC/ 1 sat = 1 sat.
Due to it’s hard money qualities, Bitcoin incentivizes saving/hodling. You can store Bitcoin in cold storage, having confidence that no government/central bank can nefariously siphon value from your back pocket as a hidden tax (inflation/money printing). Once you understand the economics of Bitcoin; you realize it’s been designed to go up in value, forever. All these DeFi/CeFi tokens/platforms are promising these massive returns – Bitcoin’s scarcity is a like a built-in hidden dividend. Your chances of losing money in DeFi/CeFi is much higher than Bitcoin going to zero; I guess it just depends what your risk-appetite is.
This is possible too.
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