SOUTHWARK, LONDON – We took a closer look at the uncanny ability of bitcoin to double in value last week (Dou₿le Trou₿le – 9 April 2021). We’re only a whisker away now from seeing a 20th “doubling” for bitcoin now – an incredible achievement considering the asset has only been around for little over a decade.
Further to that note, I’d like to share a recent letter from my colleague and resident bitcoin perma-bull Sam Volkering over at Exponential Investor. Despite the extraordinary performance for bitcoin which we’ve seen already (which you might think would calm down as the asset matures), he sees many more doublings for BTC on the horizon.
Could six-figure BTC be in our future? Seven-figure BTC? Entertaining such scenarios requires an “elastic imagination” to say the least. But looking back on bitcoin’s short history, it is those who have been willing to dream the largest, who have been rewarded the most…
Is $250k bitcoin a joke?
By Sam Volkering at Exponential Investor
I’d be surprised if during this cycle we didn’t see bitcoin surpass $250,000.
I’ve spoken to a few people recently who all ask the same question.
How high can bitcoin go?
The real answer to that question isn’t easy. My view is that you can’t put a price on the value of bitcoin. In fact, you can’t and probably shouldn’t put a value on any crypto asset.
That’s because I believe crypto assets fundamentally change the way we should think about money and assets.
If I’m right, and so far I’m well on the way, then you won’t think about the “price” of bitcoin or any crypto any more. You won’t constantly hit refresh on CoinMarketCap or Coingecko. You won’t be pulling down on your crypto portfolio app to refresh the “prices”.
Instead, you’ll just be looking at the price of that house or the price of that boat not in pounds or dollars, but in your cryptocurrency of choice.
You might think that’s the same thing. But when you consider how big a change to our world is taking place right now, you’ll start to see how real this world could be.
And it’s all thanks to a great money reset that’s taking place right now, right in front of your eyes.
I called BTC at $50,000. What’s next?
In February 2017, I did a live webinar for Southbank Investment Research with Nick O’Connor. We called the webinar Project 10X.
In it we spoke about the kinds of technologies that could change the game for investors over the coming years.
The aim was to find investors opportunities that could deliver 10X gains for them and change the very balance of their wealth for the better.
I spoke about autonomous systems, augmented realities and “self-aware” machines. But there was something else we kept as a teaser right till the end. It was the most important “10X” potential opportunity of them all.
It was bitcoin.
In that webinar one of the reports that was up for grabs was called, “Bitcoin: everything you need to know to invest today”. It was a guide for investors to get armed with all the information they needed to move into the crypto space.
In that webinar here’s what I said to Nick,
“For me, bitcoin is an alternative financial system that I believe will proliferate around the world for many, many years to come…
“The thing with bitcoin is, I see its purchasing power over time getting stronger. And in the environment, the economic, pollical and global environment that we live in today there’s never been a more relevant time to have options outside the existing global financial system…
“From the research I’ve been putting in, over the last 7 years… I believe that longer term… the purchasing power of bitcoin will reach $50,000 US dollars.”
This was February 2017.
Before the mania of crypto really kicked in for the masses. Before the explosive rise of crypto at the end of 2017 and into 2018.
It was back when one bitcoin cost investors under $1,000. In fact, when that recommendation was first made, bitcoin was exactly $956.62.
Not only has it gone past 10X since that date. But it’s actually now 55X from that time (at the time of writing this).
We’re also now in a cycle that I see taking bitcoin’s fiat-converted value soaring even higher. My take is that this cycle we could well see bitcoin surge past the equivalent of US$250,000.
That sounds astronomical doesn’t it? Well, that’s less than 450% from here. Some stocks do that in a few months. What’s not to think that bitcoin could do the same?
Oh but it’s too expensive now, I hear you say…
Well that’s what people said to me in February 2017 as well. It’s what they said to me at $19,000 in December 2017 too. It’s also what they said at around $5,000 in March last year as markets were capitulating.
And it’s what they’re saying to me now.
But here’s why I believe that this is only just the start.
The Money Reset
My view now is the same one I’ve held for about a decade.
That we’re in the midst of a global shift in the very concepts of money, value and how we interact and transact around the world.
This has been fuelled by the incompetent monetary policy from central banks and loose and wild fiscal policy from government.
The reason why crypto assets are here to stay, thrive and flourish is because of the fractured and ineffective traditional financial system.
That’s not to say you can’t still use the traditional system to make money and achieve financial success. You absolutely can. It’s just a system that’s by design set against you.
Crypto on the other hand is intentionally designed to be for you, to be for everyone, anywhere, anytime.
The crypto ecosystem is an alternative one which we didn’t have in decades prior. To escape financial tyranny was impossible. Now with crypto, we can escape it. That means if governments and central banks get worse, or even just continue to do what they’re currently doing, they will only push the use case for crypto more and more.
I see it evolving in a way that means investors, companies, even governments will have no other choice but to accept and embrace bitcoin, cryptoassets and a decentralised financial system.
That’s a money reset of epic proportions. If that’s how this all plays out, then pounds and dollars won’t be as relevant. Goods and services will be valued relative to a new base asset, bitcoin, or perhaps another cryptoasset – or several of them.
That will make us rethink money, rethink value, rethink what action you took when you had the chance to get on to perhaps the most significant wealth-creation event in the history of everything.
All the best,
Editor, Capital & Conflict
Category: Investing in Bitcoin