The Case for a $10,000,000 Bitcoin

“#Bitcoin is the first software network capable of storing all the monetary energy in the world with no loss of power over time and negligible transmission loss. Assuming broad adoption, that would make it the most valuable invention of the modern era. Few understand this.”[1]

“Destruction” — painting by Thomas Cole (1833)

“To the casual observer, most of bitcoin’s life is boring — months go by with relatively little action. Then when conditions are just right, bitcoin explodes into life, growing massively in size, and hijacking the consciousness of observers. Price goes to the “moon,” media is flooded with hyperbole, and “DMs from normies” flood in… Eventually the market bottoms. Hodlers cling together like a Band of Brothers creating a strong foundation capable of sustaining future growth… As hodlers hoard more bitcoin, the “float” (supply actively being traded) is increasingly constrained. With a decreasing available supply, each new user puts more upward pressure on the price. As price rises, media shines a spotlight, new users are pulled in, and before long we’re back in another hype cycle.”[45]

The Stock-to-Flow (S2F) Model Chart (Plan B)

“Why Bitcoin may be going through a “Supercycle”: This time is different: COVID, Gold 2.0 narrative, institutional herd, and ease of use have set a new stage. Instead of a normal bull/bear cycle, Bitcoin would break convention and enter a “Supercycle”. You probably first heard of Bitcoin in 2013 or 2017 when friends and family were talking about the wild swings in price. Bitcoin’s market cycle is typically around 4 years and some hypothesize the cycle is induced by halvings (a reduction in new supply). The idea being a reduction in supply + increase in demand = number go up. We can call this Bitcoin’s viral marketing loop… However, this cycle is different. Never before has Bitcoin had such strong fundamentals against a macro backdrop that highlights exactly why Bitcoin is needed, the narrative is singular, and the ability for global value to flow into Bitcoin has never been easier.

“While Bitcoin was planted during the 2008 financial crisis, it has blossomed largely during a macro bull run. From 2008–2020, the traditional financial markets had a few minor corrections but no recession. Until COVID came. When COVID came, the markets plunged. This was Bitcoin’s first real test. Will HODLers be the buyer of last resort? Will Bitcoin go to $0 when the world is on fire? While Bitcoin suffered a nail bitting plunge during the March 12th liquidity crisis (which affected all assets), Bitcoin survived and surged out of the gates in late 2020 to reach all time highs of $24k. While Bitcoin recovered, governments across the world engaged in unprecedented money printing. And when I say unprecedented, I mean never before in all recorded financial history. $10T+ was printed across the world to bolster the traditional finance system. This meant that governments were actively devaluing their currency, which is exactly what Bitcoin was built to protect against.

“Most people don’t think about getting earthquake insurance until an earthquake hits. Then the insurance companies are flooded with requests. Bitcoin was special purpose built to be a store of value in a world where you can’t trust your government or bank. Those moments don’t come around often though, like the 2008 financial crisis… Bitcoin was made for this moment. It is easier to understand and purchase from a wide variety of places. What happens when ownership of Bitcoin moves from 0.01% of the world to 1%? What happens when part of the $100T managed by institutions flows into Bitcoin to preserve wealth? It certainly won’t be going from $20k to $100k. It could move from $20k to $1M and then only have smaller cycles after. This may be one of the final big cycles.” [58]

“The Consummation” — painting by Thomas Cole (1833)

“You think this was lost forever? You have no heart!

12 years ago, #Bitcoin set in motion, the great revival.”[79]

“It is true that we are called a democracy, for the administration is in the hands of the many and not of the few. But while there exists equal justice to all and alike in their private disputes, the claim of excellence is also recognized; and when a citizen is in any way distinguished, he is preferred to the public service, not as a matter of privilege, but as the reward of merit. Neither is poverty an obstacle, but a man may benefit his country whatever the obscurity of his condition. There is no exclusiveness in our public life, and in our private business we are not suspicious of one another, nor angry with our neighbor if he does what he likes; we do not put on sour looks at him which, though harmless, are not pleasant. While we are thus unconstrained in our private business, a spirit of reverence pervades our public acts; we are prevented from doing wrong by respect for the authorities and for the laws, having a particular regard to those which are ordained for the protection of the injured as well as those unwritten laws which bring upon the transgressor of them the reprobation of the general sentiment. And we have not forgotten to provide for our weary spirits many relaxations from toil; we have regular games and sacrifices throughout the year; our homes are beautiful and elegant; and the delight which we daily feel in all these things helps to banish sorrow. Because of the greatness of our city the fruits of the whole earth flow in upon us; so that we enjoy the goods of other countries as freely as our own. Then, again, our military training is in many respects superior to that of our adversaries. Our city is thrown open to the world, though and we never expel a foreigner and prevent him from seeing or learning anything of which the secret if revealed to an enemy might profit him. We rely not upon management or trickery, but upon our own hearts and hands. And in the matter of education, whereas they from early youth are always undergoing laborious exercises which are to make them brave, we live at ease, and yet are equally ready to face the perils which they face…

“If then we prefer to meet danger with a light heart but without laborious training, and with a courage which is gained by habit and not enforced by law, are we not greatly the better for it? Since we do not anticipate the pain, although, when the hour comes, we can be as brave as those who never allow themselves to rest; thus our city is equally admirable in peace and in war. For we are lovers of the beautiful in our tastes and our strength lies, in our opinion, not in deliberation and discussion, but that knowledge which is gained by discussion preparatory to action. For we have a peculiar power of thinking before we act, and of acting, too, whereas other men are courageous from ignorance but hesitate upon reflection. And they are surely to be esteemed the bravest spirits who, having the clearest sense both of the pains and pleasures of life, do not on that account shrink from danger. In doing good, again, we are unlike others; we make our friends by conferring, not by receiving favors. Now he who confers a favor is the firmer friend, because he would rather by kindness keep alive the memory of an obligation; but the recipient is colder in his feelings, because he knows that in requiting another’s generosity he will not be winning gratitude but only paying a debt. We alone do good to our neighbors not upon a calculation of interest, but in the confidence of freedom and in a frank and fearless spirit. To sum up: I say that Athens is the school of Hellas, and that the individual Athenian in his own person seems to have the power of adapting himself to the most varied forms of action with the utmost versatility and grace.”[85]

--

--

Writer, thinker, law student

Love podcasts or audiobooks? Learn on the go with our new app.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store