© Provided by City AM Yet another week has passed and Bitcoin has performed stupendously well coming out of last week's slump.
More than 99% of people that ever bought Bitcoin and never sold are now in profit and the mainstream is getting really annoyed about that.
As somebody who is very plugged into this market and receives thousands of different data and analytics metrics, I find it disturbing how many main stream newspapers and news outlets are blindly negative about Bitcoin without understanding the facts.
The most common attack I have seen thrown at Bitcoin over the past few months is "Bitcoin is bad for the environment because it uses so much electricity". This is a profoundly uninformed, poorly researched and untrue statement - let me explain why.
Bitcoin is driving adoption of renewable resources faster than any other industry in history. It is simply not profitable to mine Bitcoin using fossil fuels - they cost too much. Five years ago it was profitable, but times have changed, the power consumption from the Bitcoin network has grown far beyond what it was and it is no longer viable to have fossil fuel Bitcoin mines.
Bitcoin miners commonly place their mining farms in cold areas of the world next to streams to generate electricity by way of underwater turbines, wind and solar power. This means lots of tiny power generation plants are being built all over the world that could be perfectly capable of powering towns and cities and I imagine as the Bitcoin network continues to grow, they will be repurposed to become local power plants.
Creating a boom
Either way, the increase in people building farms has brought the cost for equipment down creating a boom in the green energy sector.
Governments are quick to demonise Bitcoin. However, they invest so little into adoption of renewable energy resources and would much rather spend tax money on pointless wars over dinosaur juice (oil) in the middle east. They need to sell the general public all of the dinosaur juice that thousands of civilians lost their lives to acquire and so do not want to invest too heavily too early in renewable tech for fear it could cause problems to the traditional economy.
Bitcoin has done more for the adoption of renewables than any other industry and although Bitcoin is a resource hog, the only reason these renewable energy plants exist is because of Bitcoin. The Bitcoin network is slowly undermining traditional infrastructure and this will create problems for countries that over-regulate cryptocurrencies.
Nobody ever really questions that banks are heavily invested in fossil fuels, but they drive the entire fossil fuel industry. The banking industry itself is a resource hog larger than Bitcoin with employees commuting too and from work.
Buildings in Canary Wharf being heated and lit all day despite very few staff being in work is a waste in itself but the same applies during normal times also. Bitcoin might not be at its most energy efficient at this point in its development, but it is far better at storing value than fiat currency and drives adoption of more sustainable technology which is far more important than anything else.
Onwards and upwards
So with all that in mind, where is Bitcoin going next?
Bitcoin will likely surpass $100,000 per Bitcoin in 2021 due to the rapid adoption and understanding of its environmental benefits over traditional currency.
The big tech firms understand Bitcoin is more efficient than gold and this will be a key driving factor over the years to come. I do not consider Bitcoin an investment, for me Bitcoin is a lifestyle choice.
I choose to ditch traditional currency, I keep what I need to survive and store all my value in Bitcoin because of the huge money printing that is happening all over the globe.
We are right at the start of the decline of traditional currency. Austerity will not work to solve this crisis as stimulus is needed to restart the economy after lockdown. Governments have no choice but to devalue their own currency.
To give an example of how bad things look, US Government bond yield is projected to be around 2% and inflation is currently estimated to be around 3.5%, meaning every year if you were invested in the safest asset of all, you are guaranteed to lose 1.2% of your buying power.
Compound this and add a dash of reality and you can expect that it is going to get so much worse. This is going to cause a run on banks. People are looking to invest their cash into assets that perform better than inflation and the most obvious choice will always be Bitcoin that has outperformed everything else year after year.
So, in short, I believe this bull run is just getting started. I believe Bitcoin is in a supercycle and every single time the price of Bitcoin falls a large amount I convert more of my assets into it. I do not look to Bitcoin to increase my wealth, more so to preserve my wealth, but the reality is there are thousands of billionaires on earth and they have all done the same calculation. Bitcoin at $100,000 is not a matter of "if", it's a matter of "when".
TMG - 'That Martini Guy' - is a British cryptocurrency trader and YouTuber who publishes daily Bitcoin and crypto videos on YouTube. In the crypto space since 2013, he has vast experience in both cryptocurrency bull and bear markets having been through nearly every single one in the history of Bitcoin!
Twitter: https://twitter.com/MartiniGuyYTYouTube: https://youtube.com/c/ThatMartiniGuy?sub_confirmation=1
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