You wanna know the real reason?
0 - printers doing brrrr to buy treasury bonds
1- this makes negative real yields on bonds (this push money down)
As of 2017, the size of the worldwide bond market (total debt outstanding) is estimated at $100.13 trillion, 100 trillion is looking for alternative
2- interest on term deposits in banks are close to zero (this push money down)
3- corporate bonds risk of not being paid is bigger than expected ROI (this push money down)
4- inflation and fear of inflation getting bigger and bigger forces people to look for assets that will protect their funds from inflation by accepting even greater and greater risk (because safe assets guarantee a real loss (expected profit - inflation))
5- this push money to real estate makes them super expensive (3-4 % real profit from renting is still not enough to cover inflation)
6- this push money deeper and deeper (stocks and dividend profits) but they are cosmically overvalued and dividends are very small
As of December 31, 2019, the total market capitalization of all stocks worldwide was approximately US$70.75 trillion. so 70 trillion is looking for alternative
7- this push money deeper into very high risk assets (bitcoin) - the profit opportunity is usually better than the loss guarantee - and bitcoin is worth only 300 bil $ so even a small fraction moved from above assets will cause huge pump here.
This pump is not caused by Paypal or halving. Who TF takes care about paypal? We have 100000000 ways to buy crypto. Paypal is only another one. Pump is caused by panicked investors searching for good place to hide from inflation.
“The United States printed more money in June than in the first two centuries after its founding,” Morehead wrote. “Last month the U.S. budget deficit — $864 billion — was larger than the total debt incurred from 1776 through the end of 1979.”
https://cointelegraph.com/news/us-printed-more-money-in-one-month-than-in-two-centuries
"In response to the coronavirus, the Federal Reserve has printed approximately $3 trillion. The total assets of the Federal Reserve as of the end of February 2020 was $4.16 trillion. By the end of July, total assets was $6.95 trillion."
https://medium.com/discourse/do-you-realize-the-massive-amount-of-money-printing-happening-due-to-the-coronavirus-pandemic-1f4347cc0404
0 - printers doing brrrr to buy treasury bonds
1- this makes negative real yields on bonds (this push money down)
As of 2017, the size of the worldwide bond market (total debt outstanding) is estimated at $100.13 trillion, 100 trillion is looking for alternative
2- interest on term deposits in banks are close to zero (this push money down)
3- corporate bonds risk of not being paid is bigger than expected ROI (this push money down)
4- inflation and fear of inflation getting bigger and bigger forces people to look for assets that will protect their funds from inflation by accepting even greater and greater risk (because safe assets guarantee a real loss (expected profit - inflation))
5- this push money to real estate makes them super expensive (3-4 % real profit from renting is still not enough to cover inflation)
6- this push money deeper and deeper (stocks and dividend profits) but they are cosmically overvalued and dividends are very small
As of December 31, 2019, the total market capitalization of all stocks worldwide was approximately US$70.75 trillion. so 70 trillion is looking for alternative
7- this push money deeper into very high risk assets (bitcoin) - the profit opportunity is usually better than the loss guarantee - and bitcoin is worth only 300 bil $ so even a small fraction moved from above assets will cause huge pump here.
This pump is not caused by Paypal or halving. Who TF takes care about paypal? We have 100000000 ways to buy crypto. Paypal is only another one. Pump is caused by panicked investors searching for good place to hide from inflation.
“The United States printed more money in June than in the first two centuries after its founding,” Morehead wrote. “Last month the U.S. budget deficit — $864 billion — was larger than the total debt incurred from 1776 through the end of 1979.”
https://cointelegraph.com/news/us-printed-more-money-in-one-month-than-in-two-centuries
"In response to the coronavirus, the Federal Reserve has printed approximately $3 trillion. The total assets of the Federal Reserve as of the end of February 2020 was $4.16 trillion. By the end of July, total assets was $6.95 trillion."
https://medium.com/discourse/do-you-realize-the-massive-amount-of-money-printing-happening-due-to-the-coronavirus-pandemic-1f4347cc0404
In addition to the many points above..that are right on the money...so to speak...I'll add the following...
1) I consider Bitcoin as 'virtual land' there is only 21 million Bitcoin ever to be made and 18.5 million Bitcoin have already been made...thus...no way to game
the system above..and just 'print' dollars. Also, it is also much like 'owning' land or say a ranch near or next to say Las Vegas back in the 1950s boom days...you
don't want to sell any, or with my case BTC, in that I can't mine any more of any note..and in say the rancher near Las Vegas back in the day...his land was
also finite...thus you HODL in both instances.
2) How 'valuable' is the virtual currency (ie virtual land?) The original internet backbone the value was in the application to the internet backbone...not the
internet backbone itself as adoption rolled along. With Bitcoin, the value, for the most part, is in the bitcoin blockchain/network/backbone itself....the applications
reflect the price into the Bitcoin price of such applications.
3) Is Bitcoin a more 'pure' way to have a 'store of value' than gold, in that it has the same limited value depending on scarcity..but if you are from a country
where it is 'wise' to have 'gold' under your hut for the next country/gov't/crisis...why not just have it in virtual gold? If it is 24/7 as a GOH plan to 'bug out'
in the next 'dangerous crisis', well BTC has a lot going for it vs lugging 'gold' about. I know folks from mining days of 2013 that when Ukraine was invaded by
Russia the folks I knew then got 'all' their assets and money out of the invaded part of Ukraine..even though the Ukrainian gov't facing invasion locked down all the
banks and borders with this 'legit' crisis..the more or less got out whole. Thus, Bitcoin can be life-changing in such circumstances or as I see it, currently in places
like Venezuela.
4) 24/7 access to your assets (ie BTC) w/o having to jump through a bunch of 'hoops' or talk your broker into releasing funds or waiting for bank hours.
Anyway, why I've mostly been in HODL mode from mining BTC/LTC from 2013 until 2019.
Brad
when or if do you sell?