Bitcoin Will Be A Rare Asset As Gold!!!
Bitcoin Will Be A Rare Asset As Gold!!!

By andreaskanel | Altcoin Adventures | 14 Jan 2020


Why Bitcoin, in about 4 years, will be as rare as gold? The role of halving and comparison with “yellow metal”. The signals to raise the price of popular cryptocurrencies.

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Serious signs of growth are in the crypto market. The main parameter that drives developments is halving. We remind you that Bitcoin is programmed in such a way that the money supply from the production of new currencies is reduced by half every four years. This is a major difference from the other currencies we know, such as the euro, the dollar, the peso, etc., in which no one knows how many and when they will be printed.

In established currencies issued by the Central Banks, the channeling of excess quantity to the market depends on the economic context, the moods, the perceptions, the capacity, the interests of those who determine economic and monetary policy. Which may be right, they may be wrong. They may be looking at the general good, whatever that may mean, they may want to serve specific interests. They have the good and the bad of human decisions.

In the Bitcoin network this is not the case. Everything is predetermined and automated. No man has intervened since he was founded. The rules will apply for the next 120 years until the latest Bitcoin is produced. In the beginning, there was 50 Bitcoin production every 10 '. About 4 years later it was cut in half, becoming 25 Bitcoin per 10 '. In the current period, the rate of production is 12.5 Bitcoin per minute. This means that 1,800 Bitcoins are created each day. From May onwards, starting in the next 4 years, 900 Bitcoin systems will be sent per day.

It is the safest, most transparent monetary system ever invented. No other monetary system in human history has reached this level of perfection.

This is a revolution. For example, we know by now that by 2036 99% of the coins will have been created. And at what rate they will enter the system. We know how it is programmed to work because its code is open. You can control it by anyone. You can't change it.

In practice, this means two very important issues that anyone who wants to get into the cryptocurrency or understand its philosophy should know.

The first is that Bitcoin, in about 4 years, will be as rare as gold! Inflation after halving in 2024 will drop to 1.8%. The rate of new gold coming out of the mines, compared to the existing quantity today, is 1.6%. 2028 will be 0.9% in Bitcoin, so it will become rarer than gold!

 

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And if you find it outrageous to compare physical gold with Bitcoin intangibles, consider that Bitcoin is the first digital object that cannot be copied (this is the revolutionary data reversal). Also consider that we are now living in the digital age. Bitcoin has the magical property that it can be transferred over the Internet. The internet didn't add any advantage to gold. You can't send from mobile gold. I can transfer Bitcoin with the same ease that I send an e-mail. Unbound, whether natural, geographical, or legal.

The second is that from May onwards the weight of sellers is significantly reduced. As we said, every day 1,800 new Bitcoin markets are created and marketed. If we calculate it at its current price of $ 8,500, it means that they should enter the market with a fresh, fresh $ 15,300,000 just to keep the price of Bitcoin down and not a cent (1,800 Bitcoin X $ 8,500) . Daily! From May onwards, however, half will be required.

But besides that, the diagram also offers serious indications of upward movement. As we said, the green horizontal line actually worked as a support. It is a positive sign that it has not broken down. Even more positive, however, is that after the first recession, for the second time the price of Bitcoin escaped the cathedral channel (yellow parallel lines) that plagued it in the last six months.

 

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It is a fact that I have been captivated by the philosophy and liberation of Bitcoin. I have not hidden that I do not consider it a mere investment title but something deeper. Although whenever there is something negative, I do not hesitate to mention it. For example, I have often been skeptical to negative in recent months about its short-term price performance. The short-term, not the long-term perspective.


andreaskanel
andreaskanel

Crypto Enthousiast since 2016, I also write Crypto Topics and on Quora.


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