Okay folks, so if you're somebody that follows Bitcoin, you probably already have a decent understanding of it. Probably you know it's a decentralized currency that takes away power from central banks and or central authorities. You know. transactions are verified via something called a blockchain, of which is made up of miners who can be independent individuals or entire companies.

You probably know that it was made by a Japanese dude named Satoshi Nakamoto more than a decade ago. Maybe you know that Bitcoin has a total supply cap to 21 million and there's only a couple million left to be mined. Maybe you know that its market cap has grown to over a trillion dollars, which if this was a publicly traded company, would put it between Amazon and Facebook at number six. Yet, despite over a trillion dollars of market cap, you still have no shortage of individuals calling you a if you buy it, many of which have been saying the same thing since it was trading at one tenth of a percent of what it's trading at.

Now, this is only worth a lot because people think it's worth a lot. There's no such thing as a sustainable asset class that trades outside of its pure utility, except for almost everything to varying extents. But oftentimes it is hard to refute that quiet voice in our heads that say this is worth nothing. This isn't a company.

You can't do a traditional fundamental analysis on it. There's different metrics that you have to judge it by, and when you actually understand the different metrics, you can start making the justification for why Bitcoin should be going to a hundred thousand a coin. And in this video, I'm going to do just that. And the only thing that I ask in return for all of this is that you hit that ravishing like button.

And also, you shall not forget to subscribe either. In a world where central banks screw with your hard-earned government-backed currency by printing money endlessly and in some cases, recklessly managing their monetary policy well, if you're an individual or an entire institution that needs buying power to be protected, you may be asking yourself, how do I protect my hard earned dollars without the central bank just going and flipping me a certain finger. You work hard for your money. You pay taxes on it.

In some cases, quite a damn lot. So why allow the governing authorities to tax what little is left via inflation? Well, that's a very, very justified question, regardless of whether you're in a quote, developed nation or a underdeveloped or developing nation. All of them have their very needs for value storage. Some more than others, but almost across the board.

If you're an individual that wants to take power back and reserve your hard-earned pricing power, then you damn well need a store of value. So my first argument is going to be based on a store of value: Comparing Bitcoin to Gold: the traditional value storage that has been around thousands of years. Like Bitcoin, there's a limited number of gold. pros of gold over Bitcoin include.

It has a very, very well established, long history, again dating back millennia. It's easy to understand it's the mineral that comes from a damn rock. There's no intense, sophisticated programming knowledge that goes behind the scenes. People have traded it for thousands of years, which builds up a lot of trust and reputation with it, and with that comes clear regulatory and legal grounds from which to hold and trade it.

In terms of performance, it has had some boom and bust cycles in the last couple of decades, but when held long enough, its performance is strong and consistent, but at the same time gold is less liquid, it's less accessible, and its primary use is really only holding value, of which case, if held over the short run doesn't really do that good of a job. A lot of the time you have to either get lucky or you have to hold it for a very, very long time in order to see the actual benefits of its long-term storage. For example, say, you got unlucky and you bought gold at say, around May 2012. You'd have been red for the better part of a decade and prices are about the same today as they were back then, but still over the long run.

The idea is that gold is a pretty consistent and fair store value. There's just some certain time frames or it doesn't work very well, but most of the time it performs somewhat well as long as you're holding it long enough. And now in terms of moving on to say Bitcoin, Bitcoin as value storage A lot of people would say lol that's a joke. This could go up three four times, but it can also often go down 50 or 60 percent in like, a couple weeks.

So much for value storage. Well, I would say that while Bitcoin technically has returned value over the last 10 years since inception, it's probably still better characterized as an early stage value storage device you're investing in a future strong hedge against deflationary currencies, corrupt governments, and overall flaws of centralized systems that overly suppress the citizens who use said currencies issued by governments. But anyways, because you're in the early stages of adoption, the pro is that you get explosive growth potential as it starts getting adopted and moving to its mature stage. The con is that you get a ton of volatility along the way, and obviously with the benefit of hindsight, you could read off previous performance.

People like to talk about the fact that if you invested one dollar in gold over the last 12 years, you'd have one dollar and seventy cents today. But if you invested that same one dollar in Bitcoin at the same time, you'd have 74 million. Six hundred 000 dollars today. Obviously, that would have been like a lottery ticket type of play, and that's not a fair comparison, but even looking at the last four years where it's gone a lot more mainstream, if you put a dollar in both asset classes, four years ago, you'd have ten dollars and 34 cents with Bitcoin.

1.37 with gold. Three years ago, Eight Nine, Four dollars in Bitcoin. One dollar. Forty Five cents in gold.

Two years ago, Six dollars and seventy two cents in Bitcoin. One dollar and Twenty cents in gold. And one year ago, four dollar and eighty five cents in Bitcoin. Whereas with gold, you'd actually have lost money, only 92 cents would have been returned again.

gold is a fine value preservation asset, but there's going to be time periods where it underperforms where it goes down and you lose money sometimes for four or five years. But anyways. point is that overall, despite Bitcoin being substantially more volatile, which is why a lot of people advise not investing in it, it's extremely outperformed gold. I would say that overall gold is a strong value storage, but Bitcoin is an investment in the future of value storage.

As Bitcoin matures and gets more and more valuable, it's not going to have the same growth rate, so by the time it gets to the actual mature level, the late stage level, we're going to have the situation where. Yeah now. it's great as a store of value because it's not super volatile anymore, but at the same time because you already got to that stage, growth rates just aren't going to be the same. And here's the thing.

Once it becomes more mature and more stable, what happens? Well, more people start using it as a currency, more people start using it as a store of value, and all of a sudden it moves from just being this huge investment class to actually being a real life store valuing currency something that gold really isn't It's not really a currency, it's just a store of value. So in the long run, if we're right here, Bitcoin is going to be a much, much more useful asset class. And what happens when you have a very, very competitive asset class? Well, it becomes a lot more available and more useful and gets more institutional adoption. Which is what leads me to the next point.

Proof of concept: You can have the best asset class in the world, but if no one's buying it, who cares? The demand isn't there. But the demand for cryptocurrency as a whole, and Bitcoin has been steadily growing over the last couple of years and over the last 10 years. Largely this year by a trend of institutions adopting it. And that has continued and will continue.

For example, a survey found that 62 percent of institutions are planning to start investing in crypto within a year, a market that nearly half is composed of Bitcoin. Why? Because they are citing growing confidence in Crypto as an asset class with corporate and fund managers increasingly investing in currencies as more institutions and fund managers invest in it, what happens while other institutional investors are like, hey, hey, everybody else around me is investing in it, I better look more into this. and if they start joining, it becomes more of an upward spiral. And the other side of this coin, no pun intended, is the availability of the asset class.

The more available it is to the investing public that has money. the more easy it is for money to flow into that asset class. And what have we seen over the last year, Especially more and more firms offering crypto trading. More and more firms offering the ability to trade crypto, buy whatever crypto you want with very, very little barrier to entry.

The easier it is, the more likely people are going to invest in it, And the more people that invest in it, the more other people are going to be enthralled into investing as well and learning more about it. And you look at the most significant hurdles that stopped institutional investors from investing in crypto assets over time. While they include quality of custodial services, size of market slash liquidity, regulatory environment, lack of transparency, volatility, and a lack of reputable fund managers offering investments In this area, the risk associated with all these things has steadily decreased over the last 10 years, with maybe the exception of regulatory oversight, but over the long run, Let's just say that you're a little bit pessimistic about the Us Government, regardless of whether you're a democrat or republican. You probably agree with me that there's a large amount of power that comes specifically from the big banks.

Big Wall Street funds, biggest corporations in America. Maybe you think the power comes from the wealthiest top 1 percent? I don't know. But the fact of the matter is that as more and more of these powerful individuals and big banks start acquiring Bitcoin as an asset class, and the more that individual citizens start using cryptocurrency, the less easy it is going to be for the government to be able to ban it. If you're say, bought out by i don't know corporations like Goldman Sachs or Jp Morgan and you decide to ban one of their fastest growing asset classes, good luck getting those donor dollars in the next election cycle.

or if you're trying to ban an asset class that most of your citizens in your district use, good luck getting their votes. The more this develops, the less easy it's going to be for them to regulate this away. And this isn't China where they don't care about neither the citizens nor big corporations. Which leads me to my final thought.

and that's a discussion on market cap and market price and what they actually mean. Market cap is calculated by multiplying the market price times the number of units. Market price itself is where it gets a little bit interesting because the market price is dictated by the consistency between buys and sells at any given point, the level at which supply meets demand. But that's a little bit convoluted, isn't it? Because let's just say you have a total of 10 Bitcoins in circulation and seven of them aren't exchanging hands because people are just holding them well.

In that case, you have a scarcity. You really only have three Bitcoins trading, and those three Bitcoins trading dictate the market price for all of them. If demand goes up dramatically for Bitcoin, well, that demand has to be spread out amongst those three bitcoins and has to bid up the prices for those three instead of the 10 because there's only three available to buy. If they were all in circulation, yes, there'd be a lot more supply and those prices would go down, but because a lot of people just buy and hold, it restricts a lot of the float if you will.

That's how it's called in the stock market. At least it restricts the number of units that are actually available to change hands in a free marketplace, and thus that demand rallies the price up a lot higher than it otherwise would. Now, the reason that I mention this is because that's the situation with Bitcoin as a whole. If you want this to go from a market cap at say, a trillion to two trillion, you don't need to add another trillion dollars into it.

You just need to bid up the market price of each bitcoin unit enough that when you multiply it all out, it comes out to two trillion. Put another way, when you invest a dollar in Bitcoin, it adds maybe 5 10 15 bucks to the market cap. Because not all Bitcoins are being exchanged, you're bidding on a smaller portion of the total Bitcoins, and some estimates, like from The Motley Fool have estimated that new buy orders have 25 times the effect on Bitcoin's market cap. If that's true, that means that one dollar has the effect of adding 25 dollars to market cap.

And this makes sense because some other notable studies show that 80 of Bitcoin is held by long-term investors. That means that these aren't being bought and sold. So when demand rises, it's bidding for a much smaller available supply. and that gets smaller and smaller.

As more institutions adopt it and it becomes more mature, all that demand goes to chasing the available 20 left. So in effect. Despite Bitcoin trading at a trillion dollars of market cap, you may only have to add like 100 or 200 billion more for it to show 2 trillion in market cap, because that would rally up the market price enough to the extent that it would double. So anyways, that's often what's forgotten about when it comes down to the price and the market price of Bitcoin.

And I think it's important to understand that because at the end of the day, studies show that people are actually choosing to hold this more than they're choosing to transact with this, even on a person-to-person basis. While the number of unique bitcoin wallets has soared and the prices have soared, the number of transactions has stayed fairly consistent in recent years, suggesting that more and more people, at least at these stages, are choosing to hold on to their bitcoin as more of a long-term investment. And the more that they do that, the less supply is available to bid up the prices, and when you have the further limiting of supply and the further increasing of demand. Overall, on average, what happens while you get up trending prices.

Play stack bitcoin up with, say, asset classes in the value storage category bonds, precious metals, cash, which definitely isn't a value storage measure, but a lot of people treat it as such. If you look at how it stacks up with, say, investment classes like the stock market or real estate, then you look at industry trends such as adoption, availability, and social mainstream acceptance, and it's like, instead of asking, will bitcoin hit 100k The better question is when at the end of the day, a lot of people are going to start making the argument that, hey, regardless of whether cryptocurrency is a big focus of yours or not, it's a great way to hedge a good portfolio, even if that's just a small portion in Bitcoin, Ethereum, Cardona, some of the Altcoins. All of a sudden, it makes sense to at least have a little bit in there, and when you start having a little bit in there, it starts flowing more capital to the overall pie, Which makes more and more people say, hey, I'd be willing to have more exposure to this. This is showing good proof of concept.

So anyways, let me know what you think down below: Am I too bullish on cryptocurrency? Do I like Bitcoin too much? Is it just a coin of bitten? Not actually a Bitcoin Is Bitcoin, just a big scam brought up by evil programmers to steal money from the masses while you let me know what you think down below. Anyways, folks that caps off the video. if you have any questions, feel free to reach out to us below or join us on Zip Trader Circle if you'd like to learn how to trade. With our step-by-step lessons, our private chat, and of course our daily morning briefings where we brief on what's happening in the market each and every morning, as well as my favorite catalysts and what my thought process is on them, I'll go ahead and put a link to Zip Trader You below.

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