Bitcoin being the dinner-table buzzword of choice. Now, those same folks who didn’t really grasp the internet were experts, forecasting Lambos and early retirement. And some of them? They actually got it right. The takeaway here is that the door isn’t shut, at least not completely. Not planning to join us for this one?
Think about it: Bitcoin, in a way, is digital gold. It takes actual energy to “mine” this stuff, just as it takes actual energy to get gold out of mother earth. Charles Edwards’ Energy Value model does a good job of quantifying that energy. As of today, the model indicates Bitcoin should be valued at $130,000. It's not. It's trading at a significant discount.
It's not just about numbers and models. It's about opportunity. The Energy Value model seeks to determine the inherent value of Bitcoin. More concretely, it centers on the value embedded in Bitcoin’s creation. And at the moment, the market is telling us that intrinsic worth is dramatically undervalued.
Now picture yourself walking into a shop and finding a Rolex at 40% off. Would you ignore it? Probably not. Bitcoin, I would contend, is the Rolex of the digital age. A new store of value, a store of value, a digital symbol of innovation, potential hedge against traditional finance.
Of course, the naysayers will be at the ready to scream “bubble,” “tulip mania,” “greater fool theory!” They’ll claim that it’s all hot air and nonsense. Consider this: everything innovative is ridiculed at first. Yet the internet itself was dismissed as a fad. Now, try to imagine life without it.
Is Bitcoin Just Digital Tulips?
Bitcoin, like the internet, is built on a revolutionary technology: blockchain. Rather, it’s the transparent, decentralized ledger – known as blockchain – that would underpin this financial innovation and potentially revolutionize countless industries. Supply chain management, voting systems, digital identity – the use cases are limitless.
Volatile Bitcoin may be, its scarcity is one key reason Bitcoin is different from traditional fiat currency. Once more, governments have a secret weapon—printing more dollars and thereby eroding the value of your dollar savings. The total number of Bitcoin is capped at 21 million, ensuring scarcity. That scarcity, when blended with growing adoption, is a potent combination.
Put aside the technical analysis and the charting for a second. Think about the real-world impact of Bitcoin. I’ve listened to those who lived through hyperinflation in their own countries and were able to use Bitcoin to save their wealth. Then there’s the small business story I’d heard over and over from small business owners who have adopted Bitcoin to avoid predatory banking fees. On the other hand, I’ve observed communities rallying around Bitcoin as an on-ramp to direct financial empowerment.
How Does This Impact Your Life?
These are not just abstract concepts. All of them are perfect life and business-changing examples of how Bitcoin continues to move the world forward, one transaction at a time. And citizens are now able to truly do so with their own assets. This truly empowers these workers to have a sense of financial freedom they’ve never had before.
- Protecting your savings: Bitcoin can act as a hedge against inflation, especially in countries with unstable currencies.
- Bypassing traditional finance: Bitcoin allows you to send and receive money without relying on banks or intermediaries.
- Empowering communities: Bitcoin can provide access to financial services for those who are excluded from the traditional banking system.
The Bitcoin halving is a classic supply shock event. The pace of incoming new Bitcoin is reduced by 50%. In the past, these halvings have been accompanied by huge bull runs. Why? Simple supply and demand. Now, even less new Bitcoin is available, thereby creating even greater scarcity. If demand is constant or increasing, this dynamic puts upward pressure on the price.
Halving is Coming: History Rhymes
Think of it like this: you have a limited edition print of a famous painting. Each time an edition sells out, four years later the artist is supposed to destroy half of the remaining prints. And what becomes of the value of the prints that are still out there in circulation? They become more valuable.
The next halving is coming. And though performance is of course not indicative of future performance, the historical record is clear. The question is no longer whether Bitcoin will be impacted, but how much.
Look, I’m no financial advisor and this is not financial advice. Do your own research. Understand the risks. But don't dismiss Bitcoin out of hand. Fear and ignorance should not stop any of you—the future stewards of the technology—from getting involved with a world-changing technology.
This 40% discount? It might not last. According to the Energy Value model, Bitcoin is extremely undervalued. Like the last two halvings, the third halving might very well be the catalyst for another bull run. And with institutional and individual adoption of Bitcoin increasing, the writing on the wall is clear, at least in the long-term trend – it’s up.
Is this your last chance? Maybe. Maybe not. But ask yourself this: are you comfortable watching from the sidelines while others profit from the future of finance? Are you prepared to take the gamble of losing out on the upside rewards?
The choice is yours. Do your homework, weigh your options, and make the best choice for your community.… Yet, don’t let this wise program go opportunity pass you by without thinking hard about it. The future of finance is here, whether you realize it or not. Are you going to miss it, or be a part of it?
Is this your last chance? Maybe. Maybe not. But ask yourself this: are you comfortable watching from the sidelines while others profit from the future of finance? Are you willing to risk missing out on the potential gains?
The choice is yours. Educate yourself, consider your options, and make an informed decision. But don't let this opportunity pass you by without giving it serious thought. The future of finance is unfolding before our eyes. Are you going to be a part of it?
