There are a significant number of reasons to be optimistic about Bitcoin going forward from this point.
First, Bitcoin has recently experienced a downtrend during the bull market that began in late 2023. Bitcoin is the only asset in history that has gone down 90% multiple times and has reached all-time highs. This is a remarkable development, but what is even better is that the current environment is actually producing yet even more reasons to be optimistic about Bitcoin over the long run.
Money printing
We live in an era where the federal government likes to spend like there is no tomorrow. The US federal government borrows $1 trillion every 100 days. The US government will just print this money — reducing the value of the dollars that people have in their wallets in bank accounts. Regardless of where interest rates go, there is absolutely no reason to think Congress is going to cut spending or reduce the deficit. Zero chance of that.
Bitcoin is now one of the largest assets in the world.
Bitcoin recently overtook silver to become one of the largest assets in the world. Since Bitcoin is seen as a store of value like gold, which has a market cap of $14 trillion, it’s possible that, at some point in the future, Bitcoin may rise to a level similar to gold, or even surpass it. Unlike gold, it is possible to travel anywhere in the world with Bitcoin or ship it to anyone in the world.
Bitcoin ETFs change everything. Since anyone with a stock brokerage account can now buy a Bitcoin ETF quite easily, there are quite a number of people buying Bitcoin, which causes the institutions sponsoring these ETF plans to buy even more scarce Bitcoin.
Almost every Bitcoin has already been mined. The total amount of Bitcoin that is in circulation is 19,659,731.25, and only 21 million can ever be created. So essentially there will not be much more new supply being created in the future.
Bitcoin halving. Every four years, the supply of new Bitcoin becomes even more restricted. Next month, in April, the reward to miners for operating their machines gets cut in half from 6.25 BTC to 3.125 BTC. This is actually not priced in because miners are one of the largest sellers of Bitcoin day to day. After — and only after — the halving, Bitcoin miners will have less Bitcoin to sell, which means that there will be quite a lot of…
