We have been in the cryptocurrency industry for several years. i have bought and sold many different kinds of tokens. The only token that I didn’t dump or sell and continue buying is the bitcoin.
This decentralized system, which combines cryptography, computer science, economics, philosophy, and humanity, is so fascinating that today I decided to share some of my thoughts.
1. Bitcoin has collectible value. Satoshi Nakamoto, the founder of Bitcoin, is a real mystery. Who created this $150 billion business empire but wasn’t looking after the fame nor the profits. Allow the one million bitcoins lie quietly in the genesis block, not a single one has been moved so far. He is a George Washington-like character — who founded the United States but chose the pastoral life to show the entire world what true decentralization is. There will be no more Nakamoto Satoshi. The founder of blockchain is eternal and irreplaceable. Nakamoto is gone but the bitcoin that he brought to us — the value of the first and most widely recognized cryptocurrency will last forever. Just like the paintings of Picasso. As times go by the legal tender will inevitably depreciate because of the inevitable inflation, and with no doubts that the out-of-print works will only increase its value.
2. Bitcoin is a supply limited asset. The total amount of Bitcoin is 21 million, and it will not be fully produced until 2140. At the beginning of the design, the model of limiting the total amount and deflation allows early participants to enjoy the huge upside of the whole economy growth. Just like the land on the central area is limited while the economy will develop, so the price will only increase. Therefore, we often say that real estate in the central area is a weapon against inflation and a standard asset allocation for the wealth population .
3. The circulation of Bitcoin is even much smaller than the theoretical number. We all know the story of a coder who spent 10,000 bitcoins to buy pizzas because the bitcoin was extremely undervalued, and difficulty of mining was quite low.Obviously a large amount of bitcoin could be lost. It is a good thing the awareness of taking care of the private key has increased now, but the undervalued bitcoin has also not been taken seriously back then. Once the private key is lost, it can never be recovered. So the number of Bitcoin is still only less than half of its theoretical number. Bitinfocharts has founded that 10.5 million bitcoins in the past three years and has never had any transactions. It can also confirm that Bitcoin does have large losses rate.
4. Whale holders are holding and buying. Most of them are early participants and investors of Bitcoin. They have very strong belief, or let’s use the word — faith. Their expectations are extremely high. Whale holders, the top 100 addresses of Bitcoin, have continued to buy Bitcoin for the past years.
5. Bitcoin is gradually receiving attention from mainstream investment institutions. Fidelity, the world’s largest fund, recently announced the establishment of Bitcoin products. 22% percent of professional investment institutions have held bitcoin in some form, but most of them are just testing the water. This is a great opportunity for us. Which means when the mainstream capital enters the market, what will the price be? Once SEC approves the ETF of Bitcoin and the custodian is in place, it only matters of the time for those capitals to enter into the market.
6. The current population penetration rate of crypto-currency is extremely low. There are only more than 20 million bitcoin addresses in the world, given to 8 billion global population, so only about 2/1000 own bitcoin. The more surprising number is that there are only 730,000 addresses with more than one BTC, less than one in ten thousand of the whole population. There are 36 million billionaires in the world, which means that many rich people do not own even one bitcoin. It means that huge potential to be grow, and the ceiling of the penetration rate is far from over.
7. Telegram will launch their own token — GRAM in the Q3 of this year. Telegram currently has 300 million monthly active users, which is about 10 times more than the whole crypto industry. When telegram brings wallet/payment/ID/storage and other functions, it will greatly increase the cryptocurrency penetration of the population. Facebook has also announced that in the first half of next year, Whatsapp will launch a stable-coin based on the cryptocurrency to enter into the mobile payment field. Whatsapp has 1.5 billion monthly active users, and we believe it will push the penetration rate of cryptocurrency even more.
8. In the short term, May 2020, Bitcoin will experience a halving of mining output. The first two bitcoin productions have halved. After the first half of 2012, the bitcoin price soared from $10 to $1,000 in one year. After the second halving in 2016, bitcoin prices also experienced a bull market from $2,000 to $20,000. Litecoin will halve this year’s output, but the price of Litecoin has soared fourfold this year. The halving of the four-year production seems to be the best excuse for the movers and shakers on the market. But for long-term holders, every secondary market upraise will bring new participants, it’s a good thing to increase the influence of crypto-currency and population penetration.
9. Bitcoin addresses are anonymous. Bitcoin is a natural tool for all the transactions in the world that don’t want to be traced. Many cryptocurrencies are also derived from it, such as GRIN and many more. But Bitcoin has the highest consensus of all and is easiest to sell, so is often preferred by anonymous users.
10. Bitcoin provides a distributed, decentralized valuable storage tool. Assets are no longer controlled by the intermediaries such as banks, but completely under-controlled by me. All the assets can be stored in a small U-disk. One only need to keep 24 mnemonics properly to keep ones assets safe. Thousands of exchanges around the world will support the liquid of bitcoin. In a certain sense, bitcoin is digital gold, but it is more convenient, safe, privacy-protected, and decentralized.
The awareness and acceptance of bitcoin will be spread to more and more people. It will be an irreversible trend and is only a matter of time. In this process, as a Bgogo user, participating in this Apollo BTC discounted price trading activity will be a good opportunity to jump on the train. It is understandable to choose to arbitrage right away, but choosing long-term holdings might bring surprising benefits.
Thank you for your support,
The information or opinions expressed in this article do not constitute investment advice for anyone. BGOGO ARE NOT RESPONSIBLE FOR ANY LOSS, except as expressly provided by laws and regulations. Readers should maintain their own independent judgment or make decisions based on the content of this article only.