Although many have been surprised by the Bitcoin price this last week or so. It is just a short term consolidation. Bitcoin is ready to hit the second leg up to the top of this bull market cycle. Apparently, there are more leveraged long positions to liquidate on the way up. This chart below how this channel extrapolated out to the end of 2021 looks. Will Bitcoin make it to the top of this channel? Time will tell. We just know more fireworks are in store and a consolidation now is not something to be concerned about. Because as we will repeat a lot here. There is no bottom to currency devaluation:
The rest of this blog will be devoted to the monetary devaluation and why it’s speeding up. This next chart shows consumer price index for all urban consumers (blue line) compared to the 3 month treasury bill secondary market rate. Flat interest rates near zero and CPI inflation over 6%. Real inflation keep in mind, is closer to the 12% to 17% range now in the US. We know from previous how grossly understated CPI inflation is. Below is that chart:
This next clip from Michael Saylor explains very well the NGU (number go up) technology. Of course, the network effect is part of it. Price appreciation grabbing new demand, causing price appreciation, leading to more demand. That is the network effect. Also called Moore’s Law. Yet what Michael Saylor is talking about below is even more interesting. Because true scarcity, a truly hard asset, with increasing scarcity over time, priced in a weak currency like the USD will always go up. Much less the Peso or Bolivar. What Michael Saylor has realized, is that global monetary debasement is here, it is NOT transitory or temporary. This economic cycle is at it’s end. Currencies all over the world are experiencing money supply growth, low or negative bond rates, which means inflation. Asset inflation, especially truly scarce asset inflation. This is what keeps Bitcoin (being the most scarce asset in the world) going up year over year. 2million% returns since 2011. Here is his answer on number go up technology, view on twitter.
To further demonstrate this look at this chart below. The S&P500 priced in Bitcoin, NOT the USD! See how poorly the SPX performs priced in Bitcoin? Because Bitcoin is not seeing any monetary devaluation like the Dollar is! Here is that chart:
How the world does not yet see how Bitcoin can help them not suffer from currency debasement, is why we exist as a company. Inflation robs future generations from inheritance, it creates poverty out of a future middle class. It creates financial inequality, which leads to unrest in society, in many ways. Bitcoin is so scarce and is made strictly of math on an algorithm, called the blockchain. It is the most secure network in the world. It allows decentralization, IF you hold your own keys in an offline wallet! Never leave your hard earned Bitcoin on an exchange! Let us know how or if we can help you grow your Bitcoin holdings. It’s never too late to start. Oh yea, buy this recent dip! It won’t be this cheap for long!
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