The Case For 10x Bitcoin Is Simple – Stop Making It Hard

What Makes Bitcoin Valuable Today?

The Case For 10x Bitcoin Is Simple – Stop Making It Hard

Friends, on our road to wealth we will face many enemies.

Most of them will be of our own making. One in particular is our inclination to make things more complicated than they need to be.

It’s human nature to overcomplicate things. I think this is driven from the fear of making a bad decision. That’s why when it comes to investing, it’s easy to fall into a black hole of complexity that leaves you unable to make good decisions.

Here's the rub…

At the end of the day, investment success comes from making good decisions. And then allowing those good decisions to play out in your favor. That’s why when it comes to investing, I do my best to keep things simple.

Let’s take bitcoin, for example…

Behind bitcoin there is a lot of complexity… The bitcoin white paper, the code, how nodes work, understanding the consensus mechanism, etc.

When I first discovered bitcoin in 2011 (at the time it was trading at $7), I fell into a black hole of “analysis paralysis.”

(Analysis paralysis is the technical term for being unable to make a decision due to overthinking.)

Then in 2016 when bitcoin had run to $1,400…. then crashed to $200… yet didn’t go to zero… I asked myself a simple question: “What makes bitcoin valuable?”

That’s the question I asked every bitcoin expert I met.

From asking that simple question I learned that bitcoin is a secure way to store, send and receive value outside of the traditional financial system.

That’s why in the beginning I saw bitcoin as a censorship-proof, peer-to-peer payment network.

At the time, the whole “payment network” as measured by the value of bitcoin was $6 billion. I asked myself how much a secure global independent payment network could be worth if it became very popular.

I figured a network like that could eventually be worth $1 trillion. Fast forward six years and that’s exactly what happened.

So where does that leave us now?

What Makes Bitcoin Valuable Today?

Since I first recommended bitcoin in early 2016, U.S. national debt has risen from $19 trillion to $34 trillion. The Federal Reserve balance sheet has grown from $4.5 trillion to as high as $9 trillion.

The world is very different place than it was in 2016.

The United States is on an unsustainable financial path. That means at some point something will “break.”

That could lead to a massive devaluation of the U.S. dollar, skyrocketing interest rates, rampant inflation, yield curve control, price controls or capital controls.

I don’t need to know exactly what that “break” will look like. I just need to know one is coming. That means it’s up to me to protect and grow my wealth when the eventuality happens.

When governments experience a breakdown in their finances, the playbook is simple. You buy assets that are in limited supply and difficult to confiscate. In the past gold, gems, art and collectibles have filled this role.

It’s important to note these assets offer no cash flows and are valued in aggregate at over $17 trillion. I make mention of that because an oft-mentioned criticism of bitcoin is that it provides no cash flows.

Hopefully, you can see that an asset such as a lump of gold or oil on a canvas can be devoid of cash flows yet still be extremely valuable.

It’s reasonable to me that bitcoin is perfectly suited to fill this role of asset of last resort. A role that has predominantly been filled by gold.

Just as Netflix’s digital streaming technology put Blockbuster and its physical video tapes out of business… It’s a simple bet that bitcoin’s digital store of value will do the same thing to gold’s physical store of value.

Again, let’s keep it simple. Who owns gold? Old people, that’s who.

According to CPM Group, a commodities research and investment firm, the average gold buyer is between ages 40 and 65.

Demographics are not on the gold owners’ side. That’s because 139 million digital natives (Gen Z and Gen Y) in the U.S. are moving into their prime earning and savings years. That’s 42% of the U.S. population.

On top of that, nearly 35% of U.S. labor force participants are millennials, making them the largest generation in the country.

Millennials have grown up with digital assets their whole lives. So bitcoin makes a lot of sense to them.

According to a survey by Bitcoinist, almost half of U.S. millennials (ages 24–39) trust crypto exchanges more than stock exchanges. And studies show millennials prefer to own bitcoin over gold.

What’s really interesting about this global younger generation is they’re set to inherit up to $90 trillion worth of their parents’ wealth.

In my opinion, a lot of that money is going to find its way into digital assets.

So we’re seeing an entirely new – and previously unaccounted for – market open to crypto. And that’s bullish for bitcoin.

Again, let’s not overcomplicate this.

At Least 10x Gains Ahead for Bitcoin

Friends, you don’t have to overthink things when it comes to bitcoin. Instead, just ask yourself this simple question…

What is a young person, who has grown up in the digital world, more comfortable with? Buying a brick of gold or buying a fraction of a bitcoin?

I don’t know about you. But my bet is on bitcoin.

Now, I get that YOU might not agree with that. But when it comes to investing, what you agree with doesn’t matter.

When it comes to investing, all that matters is what the market agrees on. And it doesn’t take a rocket scientist to realize that the “kids” of today will be buying bitcoin tomorrow – not gold.

So what’s bitcoin worth if it displaces gold?

Remember, millennials and Gen z will inherit $90 trillion from their parents over the coming years. Much of that will flow into digital assets like bitcoin.

The World Economic Forum projects the blockchain (bitcoin’s underlying tech) will store 10% of the world’s GDP by 2027.

That’s $12.75 trillion – a 858% rise from bitcoin’s current market cap of $1.33 trillion.

That’d translate to $650,000 per bitcoin – or nearly 10x from today’s prices. That’s at a minimum, because unlike gold, bitcoin has a hard cap on the number of bitcoin that can ever exist.

There will only ever be 21 million bitcoins. And with the recent launch of bitcoin exchange-traded funds (ETFs), the whole world has an easy way to buy, store and trade bitcoin.

Friends, hear me when I tell you: The simplest investment you can make to build your wealth is to just buy some bitcoin and let time do the heavy lifting.

Keep it simple and grow your wealth.

Let The Game Come To You!™

Big T

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