Photo credit: SpaceX
At the time of writing, I’m sipping wine and casually looking at the price of bitcoin as if I don’t care. I don’t, because I’m a HODLer (holding on for dear life’er). But I also do care.
It’s sitting around $39K USD so a $100K price seems quite unrealistic and naive if we’re being honest. There is quite a bit of resistance to be broken before we reach that lofty goal, but I remain bullish as ever. I am, after all, a Taurus.
To me it’s inevitable that bitcoin will balloon up in the same way it’s inevitable that the sun rises from the east every single day. It’s a bold statement, I know.
Do I have tiny moments of wavering in my conviction? Sometimes, but rarely. If anything, it’s strengthening and flexing my “conviction muscles.” I welcome such challenge.
So after (slightly) waivering and coming to my senses, here’s why I think bitcoin will reach $100K by the end of the year.
Small Countries Are Adopting Bitcoin
The President of El Salvador, Nayib Bukele, did a very wise thing that seemed reckless to millions of people. He made bitcoin legal tender. As of September 1, 2021, bitcoin will be an official currency in El Salvador.
One day this move will be regarded as wildly successful but for now, it’s seen as foolish and irresponsible.
But being a dollarized country, it makes sense. They needed to find a way to front-run the inflation stemming from the economic stimulus happening today. All the unlimited amount of printing is bound to wreck our purchasing power.
Inflation = theft.
In June 2021, economists & the Fed said there’s no inflation worries. One month later, they said inflation is worse than they thought. They can’t even agree on inflation numbers. It’s insane. Anyay, inflation is now 5.4% as of June, 2021.
Bukele saw the opportunity to regain economic power and to strengthen the nation’s wealth by implementing bitcoin as a currency. With hundreds of thousands of people without banking access, bitcoin will undoubtedly change their lives. It will elevate quality of life. It will give them economic opportunities. It will give them a chance at playing more fairly in the global stage because bitcoin is the great equalizer.
Bukele simply found his winners and loaded up on it.
He also plans to use geothermal energy produced by volcanos to mine bitcoin, helping bitcoin mining go greener… which is absolutely AMAZING!
PS. The World Bank & the IMF’s lack of support for El Salvador’s adoption of bitcoin is not surprising. After all, they profit off of the backs of poorer nations by giving them debt they cannot afford to repay while charging them high interest rates. Poorer nations are paying more money to try to settle their debts than they are to helping their own people. It’s systemic poverty. To learn more about this topic, you might want to check out my recent article on it, “Silent Killers: The World Bank & The IMF.”
The Big Worry, China’s Ban On Bitcoin, Is Actually A Good Thing
When China announced they were banning bitcoin mining, some investors lost their marbles. Stress, stress, stress. The media was super quick to say “That’s it! Bitcoin’s dead… again.” But the laugh’s on them. Little do they know about bitcoin’s incredible track record at resurrecting.
What we are watching right now is historic. We are seeing an exodus from China to the Western world. This move itself will help increase the decentralization of the network itself - something plenty of investors have feared for a very long time.
Plus, it’ll help to make bitcoin mining become even more sustainable. Many miners in China were burning coal to mine bitcoin because it was a cheap energy source. Now, they’ll be forced to consume renewable energy in the new geographic areas they find themselves in. Over the long-term, bitcoin mining will be a net positive for the environment.
It’s already happening.
According to recent reports, of the energy produced by bitcoin mining 50% of it now comes from renewable energy. That’s more than can be said about the traditional financial system, or any other industry for that matter. Probably even more-so than most people care to live like. #facts
Corporations, Institutions And Billionaires Are Buying Bitcoin
Billionaires are buying bitcoin because they understand value and that to grow wealth, one must first protect it. As it turns out, they have learned that bitcoin is a great way to protect said wealth. They’re not dumb. They have many team members advising them on ways to safeguard their money and naturally, they’re turning to bitcoin.
Among the billionaires invested in bitcoin are:
Paul Tudor Jones
Ray Dalio
Barry Silbert
Blythe Masters
Dan Morehead
Jack Dorsey
Elon Musk
Tyler and Cameron Winklevoss
Michael Novogratz
The funny thing is that some of these billionaires were opposed to bitcoin. But the pandemic forced them to hedge against inflation and to invest in bitcoin.
Corporations are also turning to bitcoin, like Tesla, Square, MicroStrategy. They have bought millions - if not billions - worth of bitcoin and put it into their balance sheets.
Public companies have a responsibility to grow shareholder value. Because the economy isn’t doing well, they’re buying bitcoin in order to grow shareholder value. So it makes business sense for companies to buy bitcoin. After all, bitcoin has seen a 200% compound annual growth rate over the last decade.
If corporations aren’t putting bitcoin into their balance sheets, they’re looking to accept bitcoin as a payment method. There are rumours Apple will add bitcoin to its balance sheet and Amazon might accept bitcoin as payment. It won’t be long until the majority of corporations have at least some bitcoin in their balance sheets.
We’re also seeing banks offer bitcoin to their wealthy clients. Wells Fargo is now offering bitcoin exposure to their wealthy clients. Among other banks are JP Morgan Chase and Morgan Stanley.
These American banks are rescinding to the fact that if they don’t adopt bitcoin, bitcoin will devour everything in its path. Like a hungry animal. The mentality is now: “If you can’t beat them, join them.” It won’t be long until other banks around the world do the same in an attempt to survive.
The Macroeconomic Environment Is Still Gloomy
The pandemic forced many countries to print an unlimited amount of money in an attempt to stay afloat. It’s understandable. People have to pay for medicine, rent and food so printing money is helpful in these circumstances.
But the problem is that this create inflation in the long-run. It punishes the people they’re trying to help even more over the long-run.
The ironic thing is that in printing a lot of money, the banks and governments highlighted the beauty and power of bitcoin… that you lose purchasing power when you keep cash, but actually gain purchasing power when you buy bitcoin. They’re basically low-key marketers for bitcoin.
Thanks guys!
Inflation levels will remain high, they may even continue to grow over the next few years. Businesses will need to increase their prices to survive and once prices increase, why on earth would a business lower their price? It’s not happening.
Inflation, while it hurts all of us, will only benefit bitcoin because it will grow it in value and price. It will be a safe haven in a financial world gone absolutely mad.
More investors will cease this opportunity and buy bitcoin to build wealth. Which will in turn leave less bitcoin available for the rest of us. This is why it’s important to accumulate bitcoin, even if it’s $10 per month. Those bits of bitcoin will take you a loooong way in a few years.
There is no doubt in my mind that bitcoin will continue to thrive. Bitcoin always rises from the ashes. It has never died in the 12 years it has existed so better start stacking…
If you’re Canadian, and you’re looking to buy bitcoin in Canada, may I suggest you consider buying with Netcoins. Disclaimer: I work there and I am biased. But I really believe in the product and the mission.
One Last Word…
In my view, the bitcoin bull run is far from over. It anything the fact it’s at $39K means it’s taking a nap. It will pick up with a vengeance later this year.
Once again, it will shock the world… but not us.
It’s not just me saying it. Many bitcoiners who study on-chain analytics and do deep analysis think so too. I simply look at what they say, study the world around me, look at our quality of life, and make my best bet… which is bitcoin.
The $100K bitcoin will come, and it will be a result of the things I’ve discussed above.
So here’s my challenge for you, curious, smart reader starving for wealth… That you try your best to accumulate bitcoin, regardless of the FUD (fear, uncertainty, doubt) society is throwing at you. Don’t let that stuff get to you.
Those you stick to their vision, who are relentless in their HODLing, who never give up will be fiercely rewarded the most. I sincerely hope that’s you :)
Nice job, Ayelen. I really enjoy your posts. I truly hope you are right about this one. 😎