The Great Bitcoin Stockpile Race Begins
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The Financial Performer The Great Bitcoin Stockpile Race Begins BlackRock's Bitcoin ETF is not even one year old and it's already worth more than their 20-year-old gold fund. That's right, Bitcoin is more popular on Wall Street than gold. Don't take my word for it- have a look for yourself! Now couple that with a 55,000 coin purchase Monday from a single company, MicroStrategy, and we are really starting to cook with fire. 'So what?' you say. Wall Street and corporations make big moves all the time, what's the big deal? I'll tell you. 450 coins. That's all the world produces on any given day. 450 coins, no more, no less. That's just a little over 3,000 Bitcoin per week. So let's do a little cocktail napkin math together… 33,000 bought by ETFs, 55,000 bought by ONE company - 88,000 Bitcoin bought in one week… If you divide how many they bought by how many were made- 3,100... it means they just bought the next SIX MONTHS OF BITCOIN SUPPLY for the whole world! Are you starting to see the picture? Just 450 Bitcoins a day can be made, and the ETFs and one company bought all of them- for the NEXT SIX MONTHS. A Tale of Two Assets: Gold vs Bitcoin Bitcoin has something that gold doesn't though- true scarcity. Sure, we get gold - it's been around for thousands of years, it's rare, it's hard to get out of the ground, it holds value well. That's why we've been using it as money for so long. But when the price of gold goes up, something predictable happens. Miners get excited because they can open up new mines, dig deeper, and increase production to make more money. The same goes for any asset:
But Bitcoin? No matter how crazy demand gets, no matter how high the price may go, miners cannot mine a single coin more. Just 450 per day - that's what it's been programmed to do, and that's all it can do. Not a coin more. Ever. The world has never seen anything like it. And while you're debating whether $95,000 per coin is too high, Wall Street is buying every coin they can get their hands on. Because they know that absolute scarcity means only one thing can respond to insane demand - the price. When Giants Start Hoarding But that's just Wall Street. Let's talk about the United States Strategic Bitcoin Reserve. Yes, that's about to be a real thing. Wall Street just poured $3 billion into Bitcoin in one week. MicroStrategy spent $5 billion in one purchase. But what happens when a government starts buying? We're not talking billions anymore. We're talking trillions. During the Covid lockdowns alone, the U.S. government created $6.3 TRILLION out of thin air. This year they've already spent $580 billion with a month still to go. Currently, they hold 213,000 Bitcoin - playing second fiddle to MicroStrategy. And if there's one thing we know about Trump, he doesn't like being second. He wants America to be the number one Bitcoin nation in the world. You think he won't use the magic money printer to make it happen? And what happens when other nations realize they can do the same thing? When governments with unlimited printing power start competing for the hardest money known to man, all while miners can still only produce 450 coins a day? Simple supply and demand tells us what happens next. Sovereign nation demand slamming into an asset that can’t increase production means fireworks. In 2028, Bitcoin's daily production will actually DROP to just 225 coins on any given day. As nations race to accumulate with their money printers running hot, Bitcoin's supply gets even tighter. While government demand ramps up, Bitcoin's production gets cut in half- by design. We're about to witness the greatest supply squeeze in history. Nations with unlimited money printing power will compete for a very limited supply. The price of Bitcoin tomorrow isn't just about adoption or technology- it's about how many trillions governments will print in the race to accumulate the scarcest asset ever created.
Coming Next week ‘What the heck is Bitcoin Mining? Why 450 Coins a Day Changes Everything.' |