"Don't stop a raging bull." In other words, do not short a stock going parabolic. It is a perfect recipe to self-annihilation.
Bitcoin [$BTC] just hit an all-time-high today at $35,751. That's nearly 10x from its March low at $3,596 . 🤯 If one was short on Bitcoin on this explosive rise, leveraged at that, is definitely tapping out.
Vivek outlined a decent bull thesis on Bitcoin as well as the risks associated with it in his Medium article. His bull argument includes Bitcoin's use case as global payment, a catalyst to tech innovation, a monetary policy hedge, proven resilience, viewed as digital gold, potential high valuation, and its halving as potential catalyst. These arguments, however, aren't novel propositions. ARK Invest 2018 Big Ideas projects cryptocurrency to become a multi-trillion industry in years to come. And no, they don't talk about societal doom and gloom as has been spouted by a few permabulls. Rather, the hedgefund asserts the "merits of Bitcoin as a monetary asset." They have a well-researched, technical white paper to support their view.
Recommended Reading: Bitcoin: A Novel Economic Institution
With its meteoric rise, what could have possibly thrust BTC to new highs in 2020?
Federal Reserve Policy
Fed Chairman, Jerome "BRRR" Powell announced in August 2020 the agreement amongst Fed officials to allow inflation to run "moderately above 2%" aka not hike interest rates. Rabid Bitcoiners view the announcement as bullish, claiming to the extreme the "death of fiat." From this announcement, some businesses will view ₿ as hedge against a soaring inflation. Bitcoin.com article claims the new policy could potentially send 1₿ value to 500K. Whoa!
Jack & Square
Square, the billionaire's fintech company purchased 4,709 bitties for a total of $50,000,000 in October, representing at least 1% of the company's total assets. The news propelled ₿ from $10,000 to over $11,000. In its Q3 earnings report, Square generated $1.63 billion in ₿ revenue.
Jack also has always been a ₿ endorser, he quips that the "internet wants a native currency...bitcoin is probably the best manifestation of that...".
Late October 2020, $PYPL announced launching of a new service where its 286 million users worldwide can buy, hold and sell cryptocurrency. And would allow its 26 million merchants to accept cryptocurrency as payment source.
Visa & Mastercard
Along with Paypal, the global payment stalwarts, $V & $MA vie to accelerate adoption of cryptocurrency and blockchain technology.
"Visa has been working closely with licensed and regulated digital currency platforms like Coinbase and Fold to provide a bridge between digital currencies and our existing global network of 61 million merchants." Visa press release
“The cryptocurrency market continues to mature, and Mastercard is driving it forward, creating safe and secure experiences for consumers and businesses in today’s digital economy,” said Raj Dhamodharan, Mastercard’s executive VP for digital asset and blockchain products and partnerships.
This is not a hash for Takeuchi's Jap manga series. It is a hashtag in the Fintwit community in reference to the astute ₿ permabull, Michael Saylor, founder and CEO of MicroStrategy. His company bought a whopping 29,646 bitcoins as per December press release, totalling their Bitcoin assets at 70,470 coins with an aggregate worth of >1Billion. At time of writing, their ₿ is >2.4Billion in USD value. #SaylorMoon just doubled his Benjamins.
Institutional Interest and Miami?
SkyBridge Capital 2 days ago, launched a Bitcoin Fund that would allow affluent investors gain exposure to Bitcoin. But SkyBridge is not the first to do this, there are numerous institutions invested on Bitcoin now. Institutional interest sentiment is only accelerating.
Then, comes, Twitter Tech and VC favourite, Miami Mayor, @FrancisSuarez. Mayor Suarez responded on @APompliano's tweet that he is "open to explore" investing 1% of the Metropolis' treasury reserve. If he does this, what would other local governments do to their coffers?
Russ Gets Paid
Russ Okung, Cali Panthers athlete, tweeted 2 weeks ago that he is now receiving half of his $13 million NFL salary in Bitcoin. His May 2019 post wishing to get paid in Bitcoin has finally turned into reality. Will other high-ticket athletes or mega-celebrities follow? Time will tell.
I am [LONG] on Bitcoin but I am not delusional to believe that it will "meme" forever. Because what goes up, could sometimes painfully get hammered down. HODL!
Belated Happy Birthday Bitcoin!
Recommended Reading: Why I'm Stashing Satoshis?
11 Secrets to Financial Success - Anton Kreil
Simple Way of Measuring and Tracking Your FI/RE Progress by 10KDriver
Super Trade Tactic - 3 Keys to Superperformance, Mark Minervini
How to Become Rich, Mark Minervini
Rule of 72 by @10KDiver
Savings Rate of a Nurse in Central London
Bitcoin - All Time High!
Nick Huber's Twitter thread on business and life in general. The longest thread I've ever come across with on Twitter.
There is more to life than COVID - 2021 Intentions.
To the Moon - 2020 Investment Gains!
Year 2020 Budget Review. COVID Edition.
Investing sucks? Lost -£1473.84.
Invest 20,000 before December 20, 2020 Challenge - An Update.