The dollar price of one bitcoin has reached $50,000 again.
So is Bitcoin back?
Yes, but if you zoom out on the price chart, you’ll find that it never really left.
Here’s why I think the dollar price of bitcoin is currently on a tear, and why it will continue to go up over a longer time horizon:
Bitcoin is better money
It’s that simple. Bitcoin has the best monetary properties of any money that has ever come into existence.
The halving is coming up
In mid April, the reward for bitcoin mining will be slashed in half. Around 900 bitcoin is mined per day. That number will drop to about 450 in a couple of months. This means that there will be a lot less new bitcoin coming into the market every day. After “the halving” occurs, a very low inflation rate will get even lower. Market buyers will now be competing for half the new daily bitcoin issuance that was the standard of the last four years..
Bitcoin ETFs are here
In January, the SEC approved 11 spot bitcoin ETFs, clearing the way for institutional access to bitcoin. It certainly can’t hurt that the likes of Fidelity, BlackRock, and the gang are now incentivized to promote and sell the asset to their massive customer base on Wall Street and beyond.
Bitcoin is becoming more useful as both a store of value and as a medium of exchange
There are hundreds of companies investing enormous capital into building on the Bitcoin network and making it more accessible to the average Joe. From CashApp, to Strike, to Robinhood, to Swan, to River, and so many more, there are both bitcoin-native companies and broad-based financial services companies that are building on Bitcoin
“Blockchain” applications and the like are a thing of the past. Big teams are openly, proudly building on Bitcoin.
A global fiat financial crisis is getting worse
The United States is $34.2 trillion in debt. China is facing a population bomb. Few if any major governments have their fiscal or societal house in order. The fiat system is a disaster of epic proportions, and it’s only getting worse. Virtually every major nation states continues to accelerate measures to debase the wealth of their respective citizenries.
More and more of are awakening to the reality that there is a freer, fairer, distributed, completely permissionless monetary network in Bitcoin.
Bitcoin is not only much more moral money. It is better money. And because it is better money, bitcoin is here to stay.
As for price predictions, I only have two thoughts:
The Dollar is going down forever
Bitcoin is here to stay
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