How to Value Bitcoin Part Two
Bitcoin broke out of the bull pennant it was in this week and is exploding up to $18,700 now! Is that how you value Bitcoin. An exciting chart? See below:
No. There is so much to look at here. Yesterday we showed you the early charts of Bitcoin from 2009 to 2011 when it increased 100 times over! It does not do that in that short of a time period anymore, it is too mature of an asset class now. However, it does grow faster than any other asset in the world. Yes, it is volatile, but remember, stocks are kept less volatile by the Fed interest rate controls, quantitative easing, and stimulus to buy back treasuries and keep stock assets inflated, artificially. If free markets were unbridled, the SPX would be half or less what it is now. Bitcoin is unbridled, other than derivative exchanges, which bring in some manipulation at times. Bitcoin adoption is not sponsored by any central bank or government, it is organic. See Rick Rieder CIO of Blackrock discussing Bitcoin compared to Gold, click here to see.
Blackrock has $7Trillion assets under management (AUM). If they added 1% of AUM into Bitcoin it would triple the price of Bitcoin. Likely they are doing this through Grayscale Bitcoin Trust (GBTC) so the price is not affected as quickly. The level of adoption Bitcoin is seeing proves it is going mainstream and this bull run will last a long time. We believe into 2022.
Yet does this give us the true value of Bitcoin yet? No. Not yet. Neutral ATM sees the value in middle class and lower middle class or poverty level families being transformed financially because Bitcoin taught them how to save and invest. Bitcoin is the world’s greatest savings technology. Learning to zoom out on the charts and see Bitcoin over years not hours. Holding it and not selling keeps a tax bill away and allows one to develop the mentality required to outlast volatility that is downward (ie. March and September 2020). Hanging on through negative volatility and looking at the big picture is true value. Bitcoin teaches this if you hold it for a few years. Bitcoin ATM machines will allow you to save $20 in Bitcoin. This year that $20 would turn into $60 at least in one year. If you saved $20 per week, that would turn in to $3,120 in 2020. If you saved $20 per day, that would turn in to $21,900 in 2020. We believe 2021 will be a much better year for Bitcoin growth. Then in 2022, it will likely reverse. In the future we will discuss ladder out strategies. Probably the greatest value Bitcoin brings is peace of mind and security. No more dependence on the central bank or a commercial bank. Go from credit cards to debit cards. Your savings is growing so fast that you do not need loans. We know there are exceptions to this, but saving and investing grows wealth. Bitcoin teaches this. The savings technology and the peace and security that comes from that is a major value from Bitcoin. The tenacity and inner strength required to hold on for a long time is valuable in many unspoken ways. 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.