Increasing Scarcity: Bitcoin's Value Appreciation

Increasing Scarcity: Bitcoin's Value Appreciation

Bitcoin derives its value from people adopting Bitcoin because of its merits as a store-of-value.

27 Jan, 2024
 Jesse Myers
Jesse Myers
Author

To read the full report click the download link.

Bitcoin is complicated, I get it. Those of us who are fully immersed in Bitcoin do a poor job of explaining why Bitcoin is worthwhile - we too quickly get into the weeds and everyone gets lost. That's why Bitcoin is still a confounding mystery to you, and almost everyone.

So let's keep it simple: I'll show you one thing you didn't know about the investment case for Bitcoin.

First, let's set the stage. Right now, Bitcoin is at ~$25k/coin. It has "crashed" from a high of $70k. In the eyes of the broader public, Bitcoin is dead or dying

The reason I'm writing this is because *now is exactly the time that you should be most interested in Bitcoin, because Bitcoin has been in this exact place every four years for its entire existence. And if it does anything like what it did in the past, over the next ~2 years Bitcoin will 4-8x, meaning $100-200k/coin.

And here's the crucial bit: this is not baseless hope, this is rooted in hard-and-fast supply/demand mechanics at the heart of Bitcoin's design. These mechanics are the very reason that Bitcoin continues to rise from the ashes to spectacular new highs every four years, and why it will continue to do so.

I'm going to let you in on a couple little secrets - things that 99%+ of people simply don't know:

  • There will only ever be 21M Bitcoin.

  • Every four years, the amount of Bitcoin being released gets cut in half - events known as "halvings".

These two characteristics don't seem particularly important at face value, but they underpin everything about Bitcoin's ongoing journey. Together, they create the engine for Bitcoin's growth - a quadrennial supply shock precipitated by each halving. Guaranteed, set in stone.

To read the full report click the download link.

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