Bitcoin in the year 2030

First let’s look at where we are now.  Then we will extrapolate to the year 2030.  Here is a report on exchange balances regarding Bitcoin for this week. 96,000 Bitcoin are leaving exchanges for cold storage each month, 27,000 Bitcoin are produced each month.  In March or April, 2024, the miner reward of 6.25 Bitcoin per block will be cut in half.  Production will be half what it is now, at that time.  By 2030, the miner reward will be only 1.5625 Bitcoin for each block produced.  This scarcity, by 2030, will make Bitcoin the scarcest asset on the planet.  What do we contrast that with.  How about fiat currency?  Let’s look at the current symptoms of global money printing in fiat currency.  Reverse repos have given banks liquidity, and allowed fortune 500 companies to buy back their own stock.  Thereby, pumping their stock price and board members, and executives bonuses.  Below are examples of what the subsequent fiat currency inflation does to small businesses.  You know, on main street:

This survey to small business owners about the issues in the US economy.  Here are the responses below:

Supply chain making food and raw materials scarce, and price inflation.  Those are the main concerns from business owners.

 

Aldi’s a grocery storechain is raising prices 30%.  Apparently it is effective, Sunday April 3rd.  Restaurants, and fitness centers have closed extensively since 2020.  First the pandemic, and now out of control inflation, are the reasons.  So in the economy, we are seeing stagnant and dropping employment, price inflation in all industries, supply shortages in all industries, especially anything that requires any form of transportation.  So, what is going on now with Bitcoin as an alternative currency?  In the below chart we see Bitcoin adoption growth in blue, and issuance, or production of Bitcoin, in the orange line:

Adoption increasing, production of Bitcoin decreasing.  Scarcity which has to be produced through work (proof of work), on a blockchain.  

 

All other altcoins are proof of stake like the USD is.  If you have it, and there is an unlimited supply.  How will that impact the price of the altcoin?  Only when the controlling parties who have the most stake in the altcoin are buying more, will the price go up.  If the controlling parties dump their altcoin, what does that do to the price?  Bitcoin does not have this problem due to the issuance, or production of Bitcoin, and the fact that it is proof of work.  Bitcoin has no owners or controllers.  Satoshi Nakamoto was a group of unknown people, and all 1 million coins mined, when Bitcoin started in 2009, have never been sold.  Never.  Ethereum and the rest of the altcoins have owners and founders.  They pre-mined their coins, and can sell those coins at will.  Some altcoins have dumped to zero when the owner rug pulls all the investors in that coin.  This can never happen in Bitcoin.  If we have not said this before, we will now.  We have sold most of our Ethereum and plan to sell the rest to buy land this year.  Ethereum has done well, but it IS a security, and it CAN get rug pulled as so many other altcoins have been.  

 

So one prediction we have, is that there will be fewer altcoins left in 2030, than there are today.  Also, there will be fewer fiat currencies than there are today!  Let’s see how this plays out over the next 8 years!

 

This next chart, which we have shown before is the (2018 version) debt to equity of all nations globally.  It is color coded so as to show that the highest debt to equity nations in the middle of the chart, in red.  The US is now at 130% debt to equity.  Remember this is 2018 data:

Lebabon has now declared they’re central bank bankrupt.  Augustin Carstens of the BIS, who manages all the central banks globally had this to say about persistent inflation into the future, click here to read more.

 

Even with more rate hikes for the rest of 2022, US inflation will not slow down.  Unless the Fed persues massive rate hikes of 100 bps or more this year.  If they did that the economy would begin to collapse.  That is the issue.  The debt the US has makes it impossible for the Fed to chase inflation like Paul Volker did in the 70’s and early 80’s!  130% debt to equity is too high to raise rates like that.  This was not at all the case in 1979 to 1984.  For this reason, we expect persistent inflation with the Fed not being able to catch up to inflation with measly 25 bps to 50 bps rate hikes.  Stagflation is the likely outcome, similar to Japan.  Which is the most indebted nation on Earth.  US could take that mantle by 2030.  This leads us to the following question.  What will Bitcoin be like by that time?  The following cartoon explains the situation well:

By then it may take $6 to $10 million for a comfortable retirement.  Many will be hopelessly far behind that level and will never be able to retire.  Bitcoin due to it’s scarcity helps this situation immeasurably.  It takes a lot of patience and fortitude.  Yet as this Bitcoin scarcity ramps up after the 2024 and 2028 halvings.  While at the same time more and more countries pass the 100%, and even 150%, level of debt to equity.  These countries will fall into stagflation like Japan, and in some cases bankruptcy like Lebanon.  Austerity measures will become more commonplace, and hedges against inflation like Bitcoin, Gold, Silver, Art, and Land will be valuable to own.  For this main reason.  We believe Bitcoin will be the most valuable asset on Earth by then and those who own the most now, will have the best future later on.  Fiat currency is dying.  The US dollar is dying.  Hedge inflation with scarcity, and hold on for dear life.  Again, we are not financial advisors and this is not financial advise.  Hedging inflation will become more and more valuable into the future.  Central Banks have lost the narrative on many levels in the media.  Alternative digital currencies like Bitcoin which truly posses scarcity, which will only get stronger into the future.  They ARE the future.  Gold and Silver will remain, but Bitcoin will be king!

 

Neutral ATM is here to get everyone off of zero Bitcoin. 

 

Give Neutral ATM a try.  We have low rates, convenient locations and we are expanding. Contact Neutral ATM, we will answer all your questions about Bitcoin and using our ATM machines. Find a Neutral ATM Bitcoin machine location near you.