From “Itchy” Hands to “Diamond” Hands: Here’s What’s Next for Bitcoin

The Key Driver of Bitcoin’s Value                                                                                                                                                                                                                                                                                                                                                                                                                 August 21, 2024 | [Listen Online]( | [Read Online]( [Teeka Tiwari]( [fb]( [fb]( [fb]( [fb](mailto:?subject=Post%20from%20The%20Digital%20Asset%20Daily&body=From%20%E2%80%9CItchy%E2%80%9D%20Hands%20to%20%E2%80%9CDiamond%E2%80%9D%20Hands%3A%20Here%E2%80%99s%20What%E2%80%99s%20Next%20for%20Bitcoin%3A%20The%20Key%20Driver%20of%20Bitcoin%E2%80%99s%20Value%0A%0Ahttps%3A%2F%2Ftiwariresearchgroup.com%2Fp%2Fitchy-hands-diamond-hands-heres-whats-next-bitcoin) From “Itchy” Hands to “Diamond” Hands: Here’s What’s Next for Bitcoin After hitting a high of $73,800 in March, bitcoin has spent the last five months grinding lower. A bevy of short-term headwinds have developed, knocking the price lower. We’ve seen the German government dump $3 billion worth of bitcoin onto the market with little care as to the price it received. We’ve also seen the U.S. government send roughly $1 billion in BTC to exchange wallets to be sold But the biggest psychological overhang has been the $8.5 billion worth of bitcoin that courts recently distributed to the creditors of the defunct Mt. Gox bitcoin exchange. At one point, Mt. Gox was the largest bitcoin trading hub in the world, with 70% of all bitcoin trading volume handled on the exchange. In 2014, a devastating hack led to the theft of 850,000 bitcoin. Back then, bitcoin was trading for as low as $111. After a 10-year wait, investors have made as much as 500x their money from their bitcoin holdings. It’s logical to assume some of them will cash in. If you are a savvy long-term buyer of bitcoin, you know this overhang of coins is out there. So you have to ask yourself: “Am I in a hurry to buy bitcoin or will I wait and let the desperate sellers come to me?” Friends, you don’t get to manage or accumulate a lot of money by being irrational with it. If you know there are billions of dollars’ worth of sellers itching to sell, then you wait and you let the price come to you. And that is exactly what is happening right now… This overhang of “itchy” bitcoin is a gift to “diamond hand” (long term) investors… Not a curse. But training yourself to be a buyer when prices are weak will be the hardest thing you ever do when it comes to investing. To do that, you have to know the value of an asset is… And what its value will likely be in the future. For instance, if you understand the car market, you know when a certain make and model that’s in a certain condition is being mispriced by the market. The same is true for many other assets, including bitcoin. Over the near-decade I’ve covered this new asset class, I’ve learned that the best metric to value bitcoin is adoption. Adoption: The Key Driver of Bitcoin’s Value Aside from bitcoin’s core features of security and scarcity, it’s the pace and scale of adoption that drives its price. To determine if bitcoin is relatively “cheap” or relatively “expensive,” you have to look at where it is in its adoption cycle. Currently, Bankrate estimates 21% of Americans own crypto assets. By comparison, Gallup estimates that more than 61% of Americans own equities. My belief is that billions of people will eventually adopt bitcoin and blockchain-built digital assets in general. So let’s look at the most recent adoption drivers that will help get us there: ● Bitcoin ETFs have seen $50 billion worth of inflows since their launch in January. To put that in perspective, it took the gold ETF five years to hit that mark. ● On August 7, Morgan Stanley announced it would allow its 15,000 wealth managers to offer bitcoin to its clients. ● While speaking about bitcoin during an April 2 interview, the head of Goldman Sachs’ wealth management unit told The Wall Street Journal that, “We’re not believers in crypto.” Yet just five months later, we discovered on August 18 (via SEC filings) that Goldman Sachs holds $400 million in BTC. Clearly, they’ve had a change of heart. ● On August 19, Franklin Templeton, the $1.5 trillion money manager, filed for a new crypto index ETF that would give investors access to bitcoin and Ethereum. The proof of bitcoin’s adoption by Wall Street is in front of us. If you believe, as I do, that bitcoin will eventually be as ubiquitous in global portfolios as the S&P 500 is today… Then you can see that bitcoin is still very “cheap.” Global financial services firm PWC estimates that by 2025, there will be $145 trillion in global assets under management (AUM). Of that, $13.5 trillion is either invested in – or measured against (benchmarked) – the S&P 500. If we include money benchmarked to all the S&P and Dow Jones indexes, that figure jumps to $18.9 trillion. That’s about 13% of global AUM tied to the Dow and S&P 500. Right now, there’s only $50 billion in the bitcoin ETFs traded on U.S. markets. That’s just 0.27% of global AUM. If bitcoin only comprises 0.27% of the world’s AUM… and this is the first year it was made available to the traditional financial system… Ask yourself are we early or late to the game? Remember, Morgan Stanley just gave thousands of its brokers permission to offer bitcoin to its 2.4 million of clients. Will other firms follow Morgan Stanley’s lead or surrender the entire bitcoin market to Morgan Stanley? What do you think? And if other brokerage houses approve bitcoin offerings, will the percentage of money that’s ultimately allocated to bitcoin go up or go down? It will go up, right? It has to. But you know what doesn’t go up? The number of new bitcoin being created by the software that governs bitcoin blockchain. The supply schedule of new bitcoin issuance automatically gets cut in half every four years. So what happens when demand slowly begins to grind higher but the new supply gradually gets cut? Well, if demand just stays the same, prices will rise over time because less of the asset (bitcoin) is produced. But if demand keeps increasing while supply continues to be reduced – that’s when you see parabolic moves higher. When Is the Next Parabolic Move Higher? Since I started recommending bitcoin in 2016, it has experienced multiple parabolic moves up. When will the next parabolic move strike? I’ve never known the exact date for sure. But based on my research, I knew that bitcoin would eventually move much higher. From the low of around $400 when I recommended it to its recent high of $74,000, bitcoin has increased 185x in value. Again, I never knew for sure when that move would unfold. I just knew it would because of my understanding of bitcoin’s adoption cycle and its inherent scarcity and security. So my job is not to know the exact day the next parabolic move will occur. My job is to be smart enough to know that it will occur… And to take advantage of any price weakness to buy more. To do that, you need to have “diamond” hands. I think at a minimum bitcoin is destined to capture a 5% allocation of global AUM. In all likelihood, it’ll probably take a much bigger percentage than that. But let’s use 5%. Today, bitcoin only has a 0.27% weighting and is worth $1.15 trillion. At a 5% allocation, bitcoin’s value would jump to $7.5 trillion. That would put its price at $368,000 – a 610% move up from here. If bitcoin were to match the current allocation of all S&P 500 and Dow indexes – that number leaps to $961,000 per bitcoin. That is over a 1,600% move higher from here. So you can see we are still very early. On any given day bitcoin can make you look like a complete fool or a complete genius. That’s just the nature of a highly volatile asset. In their early days, Netflix, Facebook, Microsoft, Amazon, Google and Tesla all did the same to their investors. One day they would feel like geniuses… The next like fools. The key is to treat the down days as opportunities to build your wealth by owning more. So long as you have at least a four-year time frame, you’ve always made money with bitcoin. And that’s the next key: make time your friend. If you want to get wealthy, you must own great assets and let time do the heavy lifting for you. Friends, my hope is that this article will help you get a firmer grasp on why bitcoin’s long term price trend is up. If you can wrap your head around the idea that bitcoin’s adoption will continue to increase – and increase a lot – all while supply continues to go down… Then you’ll have cracked the code to making a fortune from bitcoin. Let the Game Come to You! Big T P.S. As bitcoin goes, so to the altcoins. And right now, I’m bullish on six tokens I believe have the potential to 500x your money. [You can discover them right here.]( And if you’re not already a paid-up subscriber to Big T’s Inside Crypto, I strongly urge you to consider it today and [decide for yourself.]( Share The Digital Asset Daily You currently have 0 referrals. [Click to Share]( Or copy and paste this link to others: [ [fb]( [tw]( [ig]( [yt]( [in]( Update your email preferences or unsubscribe [here]( © 2024 Tiwari Research Group 1607 Ponce De Leon Ave San Juan, Puerto Rico 00909, Puerto Rico [Terms of Service](