This draft was written on March 7th, 2017 when bitcoin was only at $1,300, but I didn’t publish it. With bitcoin having crossed $1,800, it’s more relevant than ever.
Bitcoin keeps going up, having crossed $1,300 as of March 3rd, 2017. It was at $1,200
last week March when I wrote Why Bitcoin Keeps Going Up: Analysis. The thesis for why Bitcoin keeps rising is that the world–with the exception of China, America, and parts of Northern Europe–is a power keg of debt and instability, pushing Bitcoin higher as the wealthy, especially, flee to the safety of Bitcoin, as well as the US dollar.
People have lost faith in their governments…and realize they are at the mercy of events outside of their control–be it uprisings, dictatorships, or terrorism. Bitcoin provides safety and stability in that it’s decentralized. Bitcoin commerce, although also important, is secondary; safety is paramount. The people who are buying Bitcoin in large quantity have no anticipation of spending it. The rich Chinese love Bitcoin as a way to get money out of their country, similar to how they love Bay Area real estate: both are a store of value in turbulent times. Millionaires will continue to buy Bitcoin in large blocks, pushing the price higher week after week.
$1,300/coin $1,800/coin and with a current supply of 16 million, the market cap is only $20 billion $29 billion, which relative to the overall global economy is still insignificant. I predict, given the aforementioned factors, it’s going to be worth at least $300-600 billion ($20,000/coin)–about the same as the present market cap of Google, Microsoft, Walmart, Exxon, Apple, Amazon, or Facebook. When you look at it terms of the market cap of existing large companies, it seems more feasible. Bitcoin is like a Silicon Valley tech company, but also so much more. Fund managers, who also buy Bitcoin on the secondary market, are treating Bitcoin like a tech stock. I added to my Bitcoin stake last week. If the ETF application is denied, it will only be a temporary setback. (application denied, but no biggie)
Make that $1800 a coin. Going to $5,000 soon. Been long Bitcoin since 2013 back when it as at $100/coin.
I added to my Bitcoin stake last week. If the ETF application is denied, it will only be a temporary setback.
Indeed it was temporary:
(the dip was when the ETF application was denied)