How to Think About Bitcoin in 2021
Money supply growth in the US has increased by $4 trillion in 2020. We expect an expansion of that M1 money supply number to be $5 - $7 trillion in 2021. We expect civil unrest, moreso than in 2020. Not everyone wants to hear this. We don’t control what is coming. If you love America. If you believe this country can again prosper, you MUST have financial health and prosperity to fight back. It is here, even though we don’t want it. The Bitcoin revolution is a decentralized store of value which appreciated over 300% last year. Neutral ATM can easily see how we have underestimated the money printing coming to our country in 2021. We have underestimated how much demand will come to Bitcoin. Below is a chart of transfer volume into Bitcoin. The increase proves the assymetric nature of this bet, investment. Money is pouring into Bitcoin from other assets that are not getting Bitcoin’s returns. The reason is they are not assymetric like Bitcoin is. Their supply is not programmatically cut in half every four years like Bitcoin’s. Here is the cumulative adjusted transfer volume going back to 2013:
The next chart is comparing Bitcoin price to S&P 500 price. This could and likely is signaling Bitcoin will rise up as S&P falls off. Plan B states the signal is $60K Bitcoin. Sooner than many of us think. Neutral ATM agrees that we have all underestimated just how fast this is happening. It is extremely negative for the country. I personally want the US to succeed and that means Bitcoin has a more gradual growth. But, unfortunately, that is not happening. As the USD valuation falls, Bitcoin price appreciates and that appears where we are heading. Neutral ATM writes these blogs to help people assimilate into Bitcoin so as to protect their wealth and their health. If your savings is crumbling how can you protect your family? Here is the chart comparing S&P500 price appretiation to Bitcoin price appretiation:
Bitcoin is in a bubble, is a common misconception. The next chart compares Bitcoin to the Tulip mania bubble, South Sea Company bubble, and the Nasdaq bubble. The Nasdaq bubble lasted 9 years, however Bitcoin is going stronger than ever after 12 years now! We see no signs whatsoever that Bitcoin will end this bull run early, much less that it will just go to zero anytime soon. Bubbles based on emotion don’t last and continue growing 12 years as Bitcoin has. Here is the chart:
Finally, the money supply has been growing exponentially as we all know. This last chart is BTC priced in M2 money supply which is total money supply both in circulation and out of circulation in banks, central banks, money market accounts:
Obviously, money supply is growing so fast, when Bitcoin is priced in that, it is going straight down. This is why Bitcoin is a good investment. Money supply growth, inflation, USD debasement all provide rocketfuel for future Bitcoin growth. It is imperative that everyone owns some Bitcoin to hedge this great inflation that is sweeping the globe.
Neutral ATM is here to get everyone off of zero Bitcoin.
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