Why Bitcoin is Perfect for the Macro Environment

All it was going to take was a black swan event to derail our whole entire financial system. Our already fragile and artificial economy left the US vulnerable to any attack. Enter 2020, the year of Covid-19, the ultimate black swan event. Then enters bitcoin; the ultimate asset made for balck sawn events. Bitcoin was born in a time of chaos. It was created in direct response to the atrocities committed by our government officials. A hedge against the poor decisions our government officials and bureaucrats all too often make. If bitcoin was made in response to the 2008 crisis, how much more important is it now that we are experiencing 2008 on steroids.

The macro environment is key to why bitcoin will succeed. As we already know, inflation is due to run rampant. The devaluation of the dollar is inevitable. Our debt will be off the charts (due to surpass our own GDP). And government spending will be out of control in response to Covid. The ultimate reckoning is upon us, (actually only for the dumbasses who didn’t buy bitcoin). The state of the Macro economy only grows bleaker and bleaker every day. Central banks are in the biggest predicament of all time. Yet, we already know their game plan, just keep on printing (and create the digital dollar to erase overleveraged money and pay direct stimulus but that’s for another paper). All of this just so happened to occur during a key time for bitcoin.

Bitcoin was already set to blast past its previous ATH. Adoption and awareness were due to be greater than ever. People were getting interested in bitcoin. Look around you, bitcoin ATMs are everywhere, search history is up, inflow of capital is increasing. There were so many things going right for bitcoin prior to covid. It had everything needed to thrive. This was all due to the bitcoin halving, a systematic event that occurs every four years.

Bitcoin does not appear out of thin air, rather it is mined. Bitcoin mining is like any other mining, only achieved digitally. Bitcoin mining is best thought of as an award system. Miners are required to solve equations, almost like a puzzle, but done with super computers that would take a human millions of years of complete. After the miner completes the “puzzle” sequence, he is then awarded bitcoin. Now, one might think this is super simple and lucrative, but it is most defiantly not. Mining requires the most expensive computers on the planet. It also requires an immense amount of electricity. Not to mention the programmatic adjustments the bitcoin algorithm creates, which is used to make it harder to mine depending on the activity of the network. It is also important to mention the bitcoin computer network is the strongest computing power in the universe! There is where bitcoin’s “worth” lies. But how does all this apply to the macro economy.

Well in May of 2020, the bitcoin halving occurred. Meaning miners went from receiving 12 bitcoins for completing the “puzzle”, to 6.25. After every single halving, the price always achieves newer all-time highs. This is just simple supply and demand. If demand remains constant, but supply is cut in half, what happens? Bitcoin goes parabolic, that’s what happens. Ok so we just had a halving, and supply shock usually takes several months to be realized, so how does this factor into 2020.

Imagine if in 2008, when gold went from $600- $1900, and if half of all the gold miners were cut in half. Half of the supply was cut in half, amid one of the biggest finical crises ever. When everyone was racing to protect their wealth from an inflating dollar. Gold was already going parabolic; it would have gone complete crazy on us. Now pretend gold is now bitcoin, and 2020 is 50x worse than 2008 in terms of a financial crisis.

We didn’t have bitcoin during the crisis of 2008(well at least it wasn’t nearly as known). People were not aware of its important properties. Which is a capped supply asset- only ever 21 million bitcoins will ever be made. Unlike gold, which is scarce, but not capped at any number. Meaning gold can be inflated. So now that bitcoin is very well known in 2020, we also had a halving, and now we are approaching an economic doomsday, what is going to happen?

Everyone will be running to get bitcoin at levels never seen before. But there is a catch; now there is half as many bitcoins made every day. Financial institutions are stacking their balance sheets with bitcoin. And most people who are holding bitcoin are holding on with their dear life, nothing will make them sell (this is proven, look at the inflow of bitcoins to cold storage addresses, they aren't moving but rather being held onto). This will quite literally be the biggest supply shock in the history of an asset. This is also why bitcoin- in the macro environment- will outperform any asset on the planet. It has outperformed every asset class for the past decade, now it's going to do it for the next decade. All these reasons make it very possible for bitcoin to be worth $100,000 in the next five years.

Supply shock will carry bitcoin to the moon. More bitcoin will be bought in the coming months than ever seen. And this cycle will continue to happen. Bitcoin will become more and more scarce and desired, yet supply will keep getting smaller. The answer to your finical problems are all right there.

Don’t be a dumbass and get fucked over like majority of the U.S. will. People are going to be broke beyond belief, yet there is something right in front of you that can save your money. People really don’t seem to understand what's going to happen. All you must do is realize that this has never gone down in the history of man. But people would rather bury their head in the sand and pretend like it's not going to happen because it scares them. Too bad, that sucks for you, I'm sorry you were too oblivious to things that were right in front of your face. So rather than pretend this isn't going to happen, why not prepare for the worst and do something that requires minimal effort.