Bitcoin Supply Shock Acceleration

The thing about Grayscale is that Bitcoins go in and they never come out. Grayscale does not and explicitly says they will not ever have a redemption program. Meaning you can sell your GBTC shares, but you can never convert it to the amount of Bitcoin behind it. Essentially those 500K+ Bitcoin are locked away forever unless Grayscale allows redemptions but they are very adamant they will not due to legal and operational friction.

The estimated trading float of Bitcoin 6+ months ago was 2-3M coins. Meaning only 2-3M Bitcoin are actively traded (moved within the past 2 months) the rest are being held. ~12M have been held for over a year, and around 3-4M are considered lost forever. The supply shock is accelerating, the day trader idiots, weak hand noobs, and nocoiners are going to be rapidly priced out if things continue the way they have been over the past 3 months. Grayscale is buying 5,000+ per day, Paypal is buying 700+ per day, Microstrategy bought 475M worth, Square bought 50M worth, other institutions are actively looking at Bitcoin or entering. These are investors with long term time horizons, they are not day traders in it for a quick buck. The available supply of Bitcoin is rapidly diminishing.

Do not get overwhelmed by the moves we are seeing now and try to time short term tops or bottoms. Hold on to your Bitcoin as tightly as you can. It is the first finite resource in our known universe and people are realizing it. A price projection of 500K per Bitcoin is modest. At that price it has a market cap equal to gold. Bitcoin is better than gold for value storage, Bitcoin is better than off-shore bank accounts for value storage. Off-shore bank accounts hold an estimated 25T. Bitcoin at a price point of 1M per coin is less than that. This is a once in a lifetime opportunity, don’t screw yourself out of it.

Submitted November 23, 2020 at 03:11PM by anonymouscitizen2 https://ift.tt/2IU0OHo