Bitcoin Price: Now Is The Time To Buy Bitcoin
Published March 24, 2017
I want take a second to tell everyone why it’s time to buy bitcoin and it’s BEEN time to buy bitcoin for a long time. By now we have it deep below a thousand dollars and it’s even more so time to buy bitcoin. Often times we can’t see the forest for the trees, we’re thinking in our view, it becomes narrow and we miss the perspective of what’s going on here. We’ve got a price drop, it doesn’t matter the reasons why the price has declined below a thousand dollar right now. The fact of the matter is that it is based on some micro circumstances and emotions, and emotions are volatile and fluctuate.
I want to layout for you the case for bitcoin. When I said the case, I mean the economic equation here. Every market it’s a supply and demand equation. Right? As demand exceeds supply, price is driven up and vice versa. So, with that said, let’s talk about the supply-side of this equation. So the supply-side is that bitcoin, when it first launched in 2009 there were 50 new bitcoin that became available every 10 minutes, and then it dropped to 25 bitcoin after four years; four years later it dropped to 12 ½ which is where it’s at now. So every 10 minutes on average, about 12 and half bitcoin come into existence. That amount is going to reduce every four years in half until the year 2140 when the very last bitcoin comes into existence and there will be no more than 21 million bitcoin.
The supply side of bitcoin of the supply and demand equation is known. It’s 21 million bitcoin in the year 2140 and the amount is being released diminishes in half every four years. Let’s look at the demand side of the equation, what’s the demand side of bitcoin? For those of you that are I would call ”in the know,” those of you that have gone down the rabbit hole and taken the deep dive into understanding bitcoin, most of you (and I’m just going to be bold with you and frank) most of you have taken a very cursory view of bitcoin and formed an opinion. You’ve just looked at it, you’ve heard a few things, read a few things and then informed an opinion and in today’s society that’s normal. In today’s society that’s normal and none of us have time to really research any topic for that matter and we form opinions based on our past and based on the things that we’re familiar with and we already know and we try to compare it to things we already know. I’m not criticizing or judging anyone else’s opinion out there in saying this, but I do encourage everyone to take a deep dive into what bitcoin truly is because there are a lot of people out there that have done this, some very smart people, and that’s what has brought us to where we are today.
When I say by that, we’ve had a $1 billion and a half in venture capital invested. And, let me tell you, $1 billion of this or more has come out of Silicon Valley and these are no dummies in the technology space. They get it. They see the vision. They are not going to put the money on the line for no reason. Some of the smartest guys on the planet are putting their money where their mouth is and investing it in bitcoin start-up companies, building up the infrastructures and making bitcoin easy to use. In the US alone, coinbase, for example, which is one of the largest exchanges…Who has made the bet behind coinbase? Who are the largest investors? Well look at it:
- The New York Stock Exchange
- USAA, one of the biggest fortune 50 financial institutions in the country, one of the biggest in the world
- The former CEO of J.P. Morgan Chase
To dismiss bitcoin is naive at a minimum, so let’s look at the demand side of this equation. So the demand side is that more and more people are finding practical use cases for bitcoin. More and more people are discovering that bitcoin serves a real need. If you are located here in the United States, it may not be as significant, you may think I use bitcoin to buy drugs, launder money or buy illegal weapons. How did that come to be? Well, it’s because of Silk Road. Silk Road played an important step in building the bitcoin community, but that’s like saying that the Internet is the blame for pornography. Is internet to blame for pornography? Or, are guns to blame for people killing people? You can’t attribute the one to the other, nonetheless bitcoin did start off with the PR problem because Silk Road used bitcoin to be able to buy illegal weapons and drugs and whatever it is that people wanted to buy, like just being able to buy on Amazon.com, so it had a peer problem, but that’s not the reality, that’s the perception.
The reality it is that the blockchain has solved the double-spend problem in computer science world, and it is an innovation and it’s probably the most important innovation of our lifetime. If you take the time to do the deep dive and do the research yourself…listen to Roger Ver and Andreas Antonopoulos. They’ve got many videos on YouTube. Listen to them talk about the implication socially and politically. We have 14, 15, maybe 17 countries worldwide that are in a financial crisis – that are in monetary money crisis, and bitcoin provides the best option to exit out of the current monetary system and helps provide the best option to connect to more than 2.5 billion adults around the world that don’t have access to global markets.
People in parts of the world that can’t solve their problems, they have cell phones to connect via satellites, but they don’t even have electricity. If you’re able to trade globally on those same cell phones, they’re going to be able to build the hospital that they need, they’re going to be able to build that well that they need. They are going to be able to solve their local problems and to create a business (entrepreneur business) to raise their family out of poverty and increase their standard of living. And that knowledge base, that skill base of talent of the people that are passionate around talent is going to add the whole on this planet. It’s going to add to the markets all over the world. 2.5 billion is not a small number of adults. Once you add the children and so forth I think the speculation is the number between 3 and 5 billion, but it doesn’t matter what the number is, it’s huge number.
Most people that have heard of bitcoin, I would say 90%, don’t get it yet. And, most people haven’t even heard of bitcoin. There’s only one direction the demand-side has been going from the very beginning, and that’s that the demand-side is increasing. More people have found more use cases for bitcoin and the demand of that bitcoin continues to go up and up. I’m experiencing it. I don’t know about you, but we trade bitcoin on a daily basis and we have brand-new customers that have never bought bitcoin before – buying bitcoin from us on a daily basis. So, why is that? Well, more and more people are discovering uses for bitcoin and using it, so the demand-side is up. More and more use cases and more and more people worldwide finding uses for bitcoin and using it.
So, what does this supply and demand curve look like? You have on the supply-side it’s declining and you have it on the demand-side it’s increasing dramatically. So from a macro perspective where can the price go? It can only go one direction folks. Bitcoin can only go one direction from a macro perspective, these inter-week, inter-month volatility where it goes up and down are just emotional responses to the most current news. Whether it be the Winklevoss Twins, or whether it be the ETF, or whether it be the potential for hard fork, which has been the same problem we’ve had for years. We’ve been dealing with the potential hard fork for a long time, none of these are new, but it catches media attention. It creates some buzz and people get emotional about it and it causes prices to move down or prices to move up. That’s a very micro perspective. From a macro perspective, there’s only one place for bitcoin to go.
Some of you may argue, what happens if there’s a major technical issue with bitcoin and it’s no longer viable and therefore it declines? Well, if that happens then so be it. The truth of the matter is, we’ve been around now since 2009, it’s 2017. There has been plenty, the very best, the very brightest that have tried to blow up and destroy bitcoin, they try to so-called “hack” it, but it’s resilient. I just published a post on our Facebook page that shows the bitcoin obituaries, I think it’s 125 times the press has announced bitcoin is dead and now it’s at its highest levels of all time. So if you want my advice and some of want it, some of you don’t, take it as it is. Every time it drops like this you should be buying bitcoin, you should be adding bitcoin to your portfolio.
And, by the way, we just launched the America Bitcoin Fund which is a fund where people can invest in bitcoin without having the technical difficulties of being able to secure it and so forth. If that’s something you’re interested in, please message me.
Other than that, I’m going to do a feed here in the near future and talk about bitcoin itself on what is bitcoin. Some people ask me what is bitcoin and why does it matter? I’ll tell you right now, when I dove into bitcoin, it took me a full week at about 10 hours a day to really get my head around and I consider myself a pretty smart guy. It’s going to take more than just a cursory view of bitcoin for you to really get it. So, if you want to take the deep dive, when you do take the deep dive, you will see what all of us are seeing. You will see what some of the brightest people on the planet are seeing in this technology.
It solved a major computer science issue and the potential is enormous. The use cases will continue to grow and the monetary policy provides a limited supply, just like gold does. And the fact of the matter is, it outperforms any other currency on the planet. Anyway, take it for what it’s worth. That’s my opinion and I hope that you continue to stay engaged with the American Bitcoin Academy because we are absolutely passionate and committed about accelerating the adoption of bitcoin worldwide. We’re going to continue to be here and fight the good fight. So I hope to see you and talk to you soon.