Latest News & Resources

Bitcoin; and Dollar Parity

Feb 4, 2011 Bitcoin gained parity with the US Dollar.  Bitcon was worth $1.


March 2, 2017 Bitcoin gained parity with an oz of Gold.  Eventually, Bitcoin will reach parity with the entire Gold market cap.  Then it will reach parity with the entire Equity market cap.  This takes a long time.  Thus, playing the long game with Bitcoin is the only game that works!  Over time, after enough halving cycles have occurred, Bitcoin overtakes every other asset.  The reason why is the debasement of the value of the dollar.  However, as the halving creates bull markets.  Miner capitulation creates bear markets.  Miners are beginning to capitulate.  In this bottom phase of a bear market.  Wheat is separated from chaffe.  In other words, only the strong survive.  We have been calling for sub $20K Bitcoin for about 5 weeks now.  Bitcoin is inching closer to that level.  It is a GREAT opportunity.  Can you see it?  These next three charts show why.  Thanks to Steve Courtney on these charts.  First is the stochastic RSI on the weekly chart.  When it is below 20, Bitcoin drops into the golden zone.  See the chart below:



The Golden zone is when the buying opportunities are the best for that 4 year cycle.  Since Bitcoin is rhythmic, it works in both directions.  During bear markets, the golden zone appears.  We are in it right now!  Now is the time to buy Bitcoin at cheap prices.  Miners capitulation takes 40 to 70 days.  So by September, the bottom, theorhetically, should be reached.  We will see what the charts say then.  Below is a close up of the golden zone, so you can see it better.  Also, notice the green gausian channel has flipped to red.  That is a sign that this bear market is here, and it is not going anywhere.  It could be late this year before Bitcoin gets above $41K.  That would be a sign Bitcoin can become somewhat bullish again.  See this chart below:


Neutral ATM - Bitcoin ATM’s in Texas - Bitcoin; and Dollar Parity


This golden zone has happened 4 times in Bitcoin’s history.  March 2020 was the last time it came up.  Now another golden zone era is upon us.  Neutral ATM expects Bitcoin to get into the teens before a reversal happens.  Just remember that bottoms and tops are impossible to time perfectly.  Dollar cost average!  Buy a little throughout the time period Bitcoin is in this golden zone.  See the four previous times it has hit this zone since 2014, in the yellow boxes below:


Neutral ATM - Bitcoin ATM’s in Texas - Bitcoin; and Dollar Parity


This will come to an end.  The best way to treat this time, is as an opportunity.  Buy the cheap satoshis now.  Someday, Bitcoin will reach Satoshi parity with the dollar.  When 1 satoshi (100 million satoshis to a Bitcoin) is worth $1.  That is decades away from now, but it WILL happen.  No other currency has the scarcity, and proof of work that Bitcoin has.  Bitcoin’s proof of work is the miners.  They create Bitcoin from power.  Therefore, Bitcoin is energy based money.  It is created from power.  


Fiat currency is debt based money.  See this example picture below, to further explain the debt based fiat monetary system: