People have always highly dreamed about the possibility of time travel. Yet the technology to set a leash upon Chrono particles has been often described in tales, movies, and explored in video games, there is a huge gap between thrilling theory and cold reality. Even though there is no possible development timeline or 100% proven possibility of time travel, there is a way to establish a bridge into the future – at least in the field of finance. The emergence of another exciting revolutionary technology – the blockchain – has created a possibility that seemingly reflects one’s desire for time travel. The chance of transferring value onwards is now real.
For the first quarter of 2022, the Voss Value Fund returned -5.5% net of fees and expenses compared to a -7.5% total return for the Russell 2000 and a -4.6% total return for the S&P 500. According to a copy of the firm’s first-quarter letter to investors, a copy of which ValueWalk has been able Read More
Value Transfer Machine
We long to go back to the times we ache for, where we felt good. But it’s still not clear how time travel may work – if it’s possible at all – to go either backward or forwards in the future. Nevertheless, there’s no doubt that a lot of people would be rather thrilled to explore the unknown and send a message there. A message, inscribed into the DLT ledger.
The blockchain is famous for the ability to eliminate the very possibility of fraud, as the risk is minimised in a system in which control is essentially distributed amongst participants. This is the perfect definition of trust. Blockchain can’t be a one-cure-for-all: crypto exchange hacks are often making screaming headlines due to astronomic amounts of stolen funds. However, the technology had only passed its first decade of development milestone and is still in the maturing phase. As the solutions become more sophisticated, and the market vector shifts into the growth of project development instead of focusing on digital assets market play.
Bitcoin, having been created and launched right after 2008’s global crisis, has evolved from a geek-only fascination (someone once used 50.000 BTCs to buy a pizza – true fact – which has now become a holiday of its own!), controversial and shady transaction tool, to the hedging tool of choice for billion-dollar corporations today. The digital finance revolution didn’t start at once and it was last year’s pandemic that ignited the match. Since March 2020, the value of the king-chip has increased tenfold and continues its crusade. Altcoins followed the trend and the emerging DeFi has produced the possibility of even greater gains for crypto holders, laying the groundwork for “crypto-forex”. Thus, an experimental digital asset has fuelled the advent of a new digital economy – one that is better, more trusted, and free of human error and greed.
Amongst thousands of digital assets, however, Bitcoin still stands and will stand as a special kind of asset. While many say its technology has become outdated and better alternatives are possible, I’m sure that there are few other projects which may offer the desired way of value transfer and reliability at the same time.
Basically, Bitcoin is the very definition of a “value transfer mechanism” in a nutshell.
One should buy BTCs not to speculate but hold and transfer value – multiplied 10 or 100 times and create a new form of a digital legacy for the generation. There are currently more than 8000 other digital currencies in circulation, however, none of these can rival the “blue chip” that is Bitcoin.
Bitcoin could be regarded as a time machine that works only onwards, transferring the value in years ahead. While many speculations in place have questioned the possibility of it going to zero, talks have now moved to speculation of its ceiling limit. Taking the possible wide-scale adoption, it’s realistic to assume that we can see up to $500,000 per one Bitcoin some time in the future. Despite the occasional drops tied to certain market events or influencer-driven narratives, the asset position remains solid throughout history.
No other asset throughout the history of mankind can rival Bitcoin so far – whether it’s physical or digital. Highly-praised metals that served as a hedge and store for value for years can’t beat it. Gold can rot, it can be faked, or it can be replaced with tungsten. Paper-stored equities can burn in an unexpected fire, and fixed income investments bring zero income and fall if inflation starts. Additionally, if a well-known CEO dies, such as Steve Jobs at Apple, a company’s shares may plummet along with the dividends they pay.
Risks are awaiting you at every corner of the financial markets. Bitcoin will retain its strong market position even in 20 years and carry the digital value through time.
The Future is Bitcoin
Investors need to keep buying Bitcoin and develop a buying strategy, as it’s a great way of saving money and storing value.
A smart strategy would be to buy a fraction once a week, once a month, regardless of the price. It is not so important whether one BTC now costs $30,000 or $50,000. It is much more vital that more and more companies will buy it not as a means of speculation but as a store of value, which means that the lower band’s price will constantly rise.
Since 2020, the support level increased from $3,500 to probably $45,000 today, and next year it will be an even higher threshold. But at the same time, there may be a sharp correction from $65,000 for example, to $3,000. No one can ever predict this. We’ve seen Bitcoin at $100, so it’s a philosophical question that someone didn’t have time to buy something. It is necessary to develop a buying strategy and remain emotionless because if you are exposed to emotions, you will lose a lot of money.
Whales and corporates are getting excited about the Bitcoin – January and February saw the highest ever monthly quantity of unique active Bitcoin addresses created. Moreover, the ATH (All-time high) of Bitcoin whales (wallets with more than 1,000 BTC) is also gaining a foothold.
It’s clear that negative real interest rates continue to push big players and corporates into alternative treasury assets like Bitcoin. I can foresee more enterprises joining the club in the long run. We are nowhere near a bubble though, the corporate demand story is just beginning.
Article By Gregory Klumov, CEO of STASIS