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Financial news I consider important, with my opinion, which is worth as much as you paid for it.

Monday, December 23, 2024

Is Bitcoin future store of value for the world?

The video below does a great job explaining the history of money and where Bitcoin might be headed. However, it misses a key point: Bitcoin isn’t money and probably never will be. Instead, it’s the premier digital store of value that’s gaining global traction. Honestly, no other pure digital asset matches Bitcoin’s universal appeal for storing value.

Why is digital storage so important? It allows for fully distributed financial systems. In finance, transactions often need collateral to proceed. Think of collateral as a safety net—if things go south, the loss is covered by transferring the equivalent in Bitcoin. This setup lets people take risks with limited downside.

Imagine a fully digital world: what digital asset would you trust as collateral? DOGE coin? 🤔

Looking ahead to 2025, I’m predicting a Bitcoin mega bubble. Why? Let’s just say Trump’s economic ideas aren’t exactly sparking growth. Raising import taxes, slashing government jobs, and removing affordable labor from the U.S. are more emotional moves than solid financial strategies, hurting small businesses in the process.

Remember 2020? Bitcoin was just hanging out at $5K. Trump unleashed a $2 trillion bond issuance—the biggest money giveaway ever. Then Biden kept the free money flowing, and boom—hello inflation. 

With potential of Trump free money and Trump pushing Bitcoin as a short-term “USA success story,” I’m optimistic about Bitcoin’s prospects in 2025-2026.

Don’t get me wrong, I plan to sell a coin when Bitcoin’s hype peaks. Since it’s not a magic ticket but more of a digital collectible, I’m eyeing an exit around $400K.  Moving to $1M isn't out of the question. 

This time, I’m recommend FBTC over GBTC. Back in 2020, GBTC was the only option and it did great, jumping $10 to $55 back then and recently from $8 in 2023 to $80—a tenfold increase!
Do your homework on GBTC, though. Personally, I prefer FBTC since it’s directly tied to Bitcoin.

The ONLY question is can bitcoin hold value in a world with US Stock market falling.
Hence, please buy only what you can hold through a downturn of bitcoin.

Wednesday, December 4, 2024

Trump is good for bitcoin

 



Trump tends to reach for the easy button to make people happy or make money.   I am rethinking my stance if bitcoin at 145k as my target.   Instead, I am revising to 400k-500k as a 2025 target.   Specifically I am thinking bitcoin will hit upper bound of this chart.

https://websurfinmurf.blogspot.com/2024/11/bitcoins-end-game.html

Bitcoin may become an asset banks will allow loans taken against it as collateral.  Whenever this does happen, that should indicate a top will be approaching.  I suspect bank loans will be on the next wave, but it’s difficult to see how bitcoin as an asset changes under Trump.

I cancelled my bitcoin sell order at 145k.  If bitcoin approaches the upper bound of the chart above, please consider selling if the money will make a positive impact to your life.