(Last Updated on February 19, 2021)
No one saw it coming.
E-cash or digital gold? Maybe.
But no one would have imagined the true reach and explosion of utility in digital assets that we are seeing today which were violently sparked by the life altering events of 2020.
February 18th, 2021 – Bitcoin market cap hits $1 Trillion and continues to revolutionize the worlds monetary ecosystem.
Smart minds wondering what could be accomplished in its 2nd decade..
The $1 Trillion dollar market cap has been a huge target for Bitcoin:
-> Proving itself as a liquid asset for institutional investors
-> Finalizing the win over other competitors in the crypto space
-> Becoming legitimate after SEC regulations as property and a lot of legal battles behind us
Computer code written in 2008 by an anonymous Satoshi Nakamoto is revolutionizing the world’s monetary system before our eyes only a decade later. Proving that its hard coded monetary principles living within a decentralized, peer to peer network is taking over the world by empowering individuals and companies to take financial sovereignty.
Cypherpunk day dreams becoming reality at a frightening fast pace
This decentralized, “proof of work” powered cryptographically encrypted time storing chain of unique computer code is achieving goals faster and well beyond the scope of any human’s expectations, even those of Satoshi Nakamoto. There are very few individuals before 2008 who could even imagine Bitcoin’s true potential as a new modern monetary tool. Most thought leaders and technologists were imagining “E-cash” and simple versions of digital gold, which was amazing insight and accurate at the time, but 2020 has exponentially increased worldwide demand for BTC.
“Just as the technology of printing altered and reduced the power of medieval guilds and the social power structure, so too will cryptologic methods fundamentally alter the nature of corporations and of government interference in economic transactions. Combined with emerging information markets, crypto anarchy will create a liquid market for any and all material which can be put into words and pictures. And just as a seemingly minor invention like barbed wire made possible the fencing-off of vast ranches and farms, thus altering forever the concepts of land and property rights in the frontier West, so too will the seemingly minor discovery out of an arcane branch of mathematics come to be the wire clippers which dismantle the barbed wire around intellectual property.
Arise, you have nothing to lose but your barbed wire fences!”– Crypto Anarchist Manifesto
Bitcoin is establishing freedom and hope for all by providing a decentralized hedge against “the system”.
Governments have shown time and time again to not have the individuals best interest in mind. They have constructed private monopolies of economic policy and construction like the Federal Reserve and Central banks of the world. This centralized power over our global banking system quickly turns into corruption through monetary facilitation of government scandals. Scandals guised as Government programs that continue to waste taxpayer funds and fund the elite indirectly. Years and years of overspending have created massive deficits and debts which can only be reduced by devaluing their own fiat currencies.
The money printing is just getting started.
The inflationary wave is coming quickly for the U.S. dollar and the exponential adoption of Bitcoin by large, cash rich companies is proving just that.
In 2019 very few investors were overly concerned about mass money printing in the United States pushing inflation to record heights, devaluing of the dollar, and possibly even dethroning of the dollar as the world’s reserve currency.
No one could see publicly traded mega-corporations and investment groups evolve Bitcoin into a monetary tool as the modern treasury reserve asset to hedge against inflation and government censorship/corruption.
But the events of COVID-19 have greatly accelerated these policy effects and poor response strategy from Governments and Central banks around the world.
$1 Trillion USD market cap marks Bitcoin is here for good.
This cements the fact that Bitcoin is not only here to stay, but has become a legitimate market for institutional investors around the world. The entire cryptocurrency space has soaked up a lot of monetary value, but Bitcoin is the clear leader, not only innovation, originality, and philosophy, but in market cap as well.
No longer a small, niche segment of tech speculation, Bitcoin has amassed $1 Trillion dollars in market cap.
One tenth the total market cap of Gold.
Ethereum is the “second best” or runner-up in digital asset market cap at $225 Billion dollars. The rest of the digital space has market caps flirting with the $20-40 Billion dollar market cap range depending on the recent market volatility. Of course, many altcoins are looking attractive for speculative investors currently as we are seeing the “rising tide floats all boats” mechanics hit the market.
But high risk, high speculation, altcoins are for gamblers – not trillion dollar institutions like Blackrock.
Bitcoin is 10x better than just a “Digital Gold 2.0”
-> Anti-inflationary hedge as supply hard capped at 21 million
-> Trustless and transparent blockchain public ledger
-> Government resistant
-> Censorship resistant and access for all
-> Instant settlement with a global network that crosses all borders
Bitcoin is coming after that Gold market cap quickly.
At nearly 1/10th the total market cap for Gold we will start to see traditional investors lured away from an old, slow performing and non-competing dated assets such as metals. Initially this will be a hedge to ensure they have some capital in the emerging technology of digital assets.
I’ve always said Bitcoin represents the digital version of Gold, except Bitcoin is made for a future of hope and equality, not an apocalypse.
Eventually we could see Gold’s “store of value” narrative become for the apocalyptic doomsayer types only. This will be due to the overtaking of our old world by a new digital age powered through technology.
Bitcoin does everything better, period.
Having a small hedge in Gold in case SHTF so badly we are bartering bits and pieces of valuable metals for wealth. Though, I would expect ammunition, water, and food would probably be a stronger bartering tool in that sort of apocalypse anyways.