Even Above $30K, Bitcoin Remains Totally Undervalued Relative to Its Fundamentals
The freedom that Bitcoin gives you is priceless.
|Sylvain Saurel||Jan 5|| 2||1|
Bitcoin's bull rally seems never to stop. Started at the beginning of October 2020, this bull market rally has been intensifying day by day, to the point where the Bitcoin price has become parabolic since December 25, 2020.
Bitcoin price reached a new All-Time High (ATH) on January 3, 2021, with a price of $34,608. At the current rate of progress for Bitcoin, this ATH will most likely not last more than a few days. Once the $35K is exceeded, it will be the $40K that will be in the line of sight for Bitcoin.
Anything seems possible right now, as the demand for Bitcoin has increased incredibly since institutional investors have flocked in droves in the midst of this bull rally.
Bitcoin's market cap is now over $600 billion, placing Bitcoin just behind Tesla in terms of market cap. Elon Musk's company is one of the biggest beneficiaries of the hundreds of billions of dollars dumped into the financial markets by the Fed in 2020.
Many people now believe that Bitcoin is overvalued. However, retail investors are just beginning to arrive, as evidenced by the increase in Google search volumes for the term "Bitcoin" since mid-December 2020. In my view, there is still room for this Bull Run to continue to go even higher in the coming days.
Nevertheless, you can never know in the short-term what will be the Bitcoin price.
Whatever happens in the coming days, whether Bitcoin reaches $40K, or whether we see a large correction of 30-40% as often happens after this kind of bull rally, it will nevertheless remain an essential reality that you have to take into account: even beyond $30K, Bitcoin remains the most undervalued asset in the world relative to its fundamentals.
I frequently talk about Bitcoin's fundamentals, and some people seem to not understand what they are. So I'm going to come back to that again.
Bitcoin is much more than a financial investment. Bitcoin is not about money, contrary to what the mass arrival of institutional investors might lead you to believe. Bitcoin is first and foremost about power.
As Bitcoin celebrates today, January 3, 2021, the 12th anniversary of the official launch of its network, it is essential to remember that Satoshi Nakamoto created Bitcoin to return the power regarding money to all the inhabitants of the Earth. Once you take power over your wealth, you will be able to achieve total freedom.
Freedom to receive
Bitcoin gives you the freedom to receive money whenever you want from anyone. You provide an address on the Bitcoin network, and you only have to wait a few minutes for your address to be credited with the amount sent by the person making the transaction.
No one can prevent this transaction from taking place. You do not need to ask permission from a third party as is the case with the banking system. The government cannot confiscate your BTC.
To access this first fundamental freedom that Bitcoin gives you, you must absolutely have in your possession the private keys associated with your BTC. You only own the BTC whose private keys you actually have in your possession. That's why I constantly repeat that buying Bitcoin via PayPal or a third party that doesn't allow you to own the private keys of your BTC is a bad thing that you will regret sooner or later.
Freedom to send
Just as you can receive Bitcoin from anyone at any time, you can safely send Bitcoin to the other side of the world within minutes at any time.
You don't have to wait for your bank to open for your transfer order to be executed. Bitcoin works all the time. The Bitcoin network has an uptime of 99.98% since its launch exactly 12 years ago. This is incredible when you think that Bitcoin only works because of its users.
Bitcoin has never been supported by governments or private investment banks. Bitcoin's success is above all due to the confidence of its users in the revolution it embodies.
Without any leader, Bitcoin belongs to all its users. This is essential and makes the Bitcoin network unstoppable. There is no one to sue to try to stop Bitcoin. Bitcoin will continue to work no matter what. Decentralization is so great.
Freedom to hold
Many people feel free to use their fiat money as they wish. They feel that they can accumulate money in their bank account without worry. In reality, if they do this, they will inevitably lose purchasing power due to the ravages of monetary inflation.
If you had left $1,000 in a bank account in 1971, the value of your $1,000 would not even represent $150 in purchasing power by 2021. An 85% loss in value in just 50 years.
With today's monetary and financial system, you are not free to keep your money. The U.S. dollar was designed to be spent. This is the only way to prevent your fiat currency from inevitably devaluing over time.
In contrast, Bitcoin was designed to be saved. Bitcoin is the best savings technology in the world. The year 2020 has helped more and more people understand that the best money-saving hack could be summed up in two words: Buy Bitcoin.
Of course, after buying Bitcoin, you have to HODL Bitcoin. Bitcoin gives you that freedom because its price keeps increasing over time. For example, in the last year, the Bitcoin price has increased by +360%:
So you can put your hard-earned money into the Bitcoin network without fear of your BTC lose its value. This is something hundreds of millions of people will be doing over the coming years.
Freedom to live your life on your own terms
The three great fundamental freedoms that Bitcoin gives you as a user have a much wider impact on your life afterward. You can live your life on your own terms.
You will no longer have to obey the wishes of your government, which wants only one thing: to push you to spend more and more of your hard-earned money. If you don't spend it, it will take most of it from you through taxes, or it will lose all its value.
With Bitcoin, it's in your best interest to work hard because your hard-earned money continues to increase in value over time. This is because Bitcoin has a maximum supply that is hard-capped to 21 million units. This incredible paradigm shift is only understood by a minority of people on Earth yet.
Bitcoin has just passed the 100 million user mark in September 2020. As a reminder, the number of people on Earth which is already 7.8 billion dollars will continue to grow in the coming years. In the face of this growing demand, the supply for Bitcoin will remain unchanged.
As the principles of the law of supply and demand teach us, the Bitcoin price will only increase sharply in the years to come.
The fundamentals of Bitcoin clearly make it a totally undervalued asset, even at $30K. These fundamentals will increase the demand for Bitcoin in the future. As its price increases, more and more people will come to benefit from the power that Bitcoin gives you. And so on.
This should make you realize that seeing the Bitcoin price rise to a million dollars within 20 years is not utopian. It's a reality that's gaining a little more weight every day. You will realize it sooner or later.
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