Mega Bullish Case for Bitcoin The Next 2-4 Years
Unexpected Allies Boosting Bitcoin's Value
BULLLLLLLISH…
To me the least interesting aspect of bitcoin is the dollar price.
That should tell you there’s much more under the surface than meets the eye regarding how it is going to change humanity.
The world of bitcoin has come a long way since the inception of Bitcoin over a decade ago.
In recent years, Bitcoin and other digital assets have gained significant traction as mainstream investments.
While bitcoin remains volatile as a smaller asset class, there are compelling reasons to be bullish on Bitcoin over the next 2-4 years.
Remember one bitcoin still equals one bitcoin.
The fiat currencies are losing value over time which makes asset prices go up.
Let’s look at some massive tailwinds for the world’s purest form of money as government currencies continue to free-fall from reckless printing.
1) FASB Ruling & Corporate Accounting
In the traditional financial world, bitcoin has often been met with skepticism.
However, a recent development could help change this perception.
The recent Financial Accounting Standards Board (FASB) ruling allowing for the fair-market valuation of Bitcoin as an asset on companies' balance sheets is a game-changer.
This ruling means that corporations can now recognize Bitcoin as a legitimate asset, just like stocks, bonds, or real estate.
As more companies adopt this practice, it legitimizes Bitcoin as a store of value and an investment.
This newfound recognition by corporate America bodes well for Bitcoin's future, as it paves the way for institutional investment and increased demand.
2) BlackRock & the Emergence of Spot ETFs
BlackRock, the world's largest asset manager, recently entered the bitcoin arena, signaling a significant shift in the financial landscape.
With BlackRock's involvement, other major asset managers are likely to follow suit.
The potential approval of spot Exchange-Traded Funds (ETFs) by these giants could further propel Bitcoin into the true financial mainstream.
The introduction of spot ETFs would offer traditional investors a convenient and regulated way to gain exposure to Bitcoin, removing some of the barriers to entry that have deterred institutional investors in the past.
This increased accessibility could drive more capital into the Bitcoin market, increasing demand and therefore driving up prices.
3) Countries Embracing Bitcoin Mining
Beyond the financial sector, Bitcoin is making inroads at the national level.
Countries like Bhutan, Oman, and El Salvador have embraced Bitcoin mining, recognizing the economic benefits it can bring.
By engaging in Bitcoin mining, these nations are not only securing their place in the bitcoin ecosystem but also contributing to Bitcoin's decentralization.
This trend could encourage more countries to explore Bitcoin mining as a viable economic strategy, further solidifying Bitcoin's position as a global asset.
Not to mention the social and environmental impact the mining will have cleaning up areas and stabilizing energy grids.
When people around the world see this in practice, look out.
4) Bitcoin Halving in Spring 2024
Bitcoin's scarcity is one of its defining characteristics, and it's about to become even scarcer.
Bitcoin undergoes a process known as "halving" approximately every four years.
During a halving event, the rewards miners receive for verifying transactions are reduced by half.
This process reduces the rate at which new Bitcoin is created, effectively decreasing supply.
The psychological impact of halving events is significant.
Historically, they have been associated with bull markets, as investors anticipate a potential supply shock and increased demand.
With the next halving scheduled for spring 2024, this event is likely to be a driving force behind Bitcoin's bullish case in the next 2 years.
The reason for this is that ALL money and currency is psychological.
5) Economic Factors: Debt, Interest Rates, & GDP
Economic fundamentals also play a crucial role in Bitcoin's bullish outlook.
The ever-increasing debt-to-GDP ratio in many countries, including the United States, is unsustainable.
Governments find themselves in a precarious situation where servicing their debt becomes increasingly challenging.
To manage this predicament, governments may opt to keep interest rates low, effectively devaluing their currencies.
This strategy erodes the purchasing power of fiat currencies like the US dollar, driving people toward alternative assets like Bitcoin as a hedge against inflation and economic instability.
6) The Ongoing Devaluation of the Dollar
The US government's propensity to print currency and bail out various sectors of the economy has raised concerns about the long-term stability of the US dollar.
As the world's reserve currency, any weakening of the dollar has global ramifications.
The more currency is printed, the less each dollar is worth.
In this environment, Bitcoin stands out as a finite digital asset with a capped supply.
Bitcoin is the ONLY asset in the world that is equally finite to a human’s time.
Investors seeking to preserve their wealth are turning to Bitcoin as a safe haven, driving demand and potentially pushing Bitcoin's price to new heights.
We can guarantee the government will print more currency in a debt based system, hence why we know the price of bitcoin in dollar terms will continue to go up.
Conclusion
The bullish case for Bitcoin over the next 2-4 years is rooted in a combination of factors, including regulatory recognition, institutional adoption, global mining activities, scheduled supply reductions, and economic conditions favoring alternative assets.
While Bitcoin remains a speculative investment, these elements suggest a bright future for the pioneering money.
Humans ultimately gravitate to the hardest money known to man throughout history.
This time will be no different.
We still have some bumpy rides ahead but the adoption S curve has taken root and there is no going back.
Stay strong,