The First Trillion Is a B*tch - Bitcoin Reached It in Just 12 Years, and The Best Is Yet To Come
It is just the beginning for Bitcoin.
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“The first $100,000 is a bitch, but you gotta do it.”
— Charlie Munger
Starting a Bitcoin article with a quote from Charlie Munger is pretty tasty for me. A lifelong investment partner of Warren Buffett, Charlie Munger is also a staunch opponent of Bitcoin.
“Bitcoin is noxious. To me, it's just dementia. It's like somebody else is trading turds and you decide you can't be left out.”
As Bitcoin has just passed the $1T market cap milestone for the first time in its history, I found it interesting to revisit a well-known quote from Charlie Munger, and apply it to Bitcoin.
Here is how I came up with the idea for the title of my article.
What Bitcoin has accomplished is all the more remarkable since the king of digital currency will have reached the $1T market cap in only 12 years. It took Microsoft 44 years, Apple 42 years, Amazon 24 years, and Google 21 years.
For Bitcoin, things are moving very fast. This makes total sense because Bitcoin's scope is broader than that of GAFAM. Bitcoin is a true monetary revolution that will change the world of the future for the better.
And yet, only 1% (at most) of the Earth's inhabitants already own Bitcoin. Bitcoin, therefore, has a phenomenal growth potential ahead of it. The advantage of Bitcoin is that it meets the varied needs of hundreds of millions of potential users.
Under these conditions, its adoption will explode in the future.
The current price of around $53K will look cheap in the future. Now that Bitcoin has passed the $1T market cap, I see two major goals ahead. The first in the short term is $100K. This will happen by the end of 2021. This is my certainty and the certainty of all Bitcoiners.
We have been saying this for months. We were repeating it in March 2020 when its price hit an annual low of $3.8K. At that time, the opponents of Bitcoin were laughing at us. Today, no one is laughing anymore.
More and more people are taking Bitcoin very seriously. Institutional investors understand that this monetary revolution is here to stay. For them, it becomes essential to join the revolution. The Bitcoin haters who continue to struggle will eventually join the Bitcoin world.
It is only a matter of time because all Bitcoin Bears will eventually become Bitcoin Bulls. The success of Bitcoin is inevitable. Some realize it, or admit it, later than others. Under these conditions, these people pay more for their BTC than others.
There is nothing unfair about this. Bitcoin is a fair game. Everyone has the same information. There is no such thing as a hacking strategy with Bitcoin. Everyone can choose at any time to freely join the world of Bitcoin. It is a choice to be made to regain power over money.
When the price of Bitcoin then undergoes significant price corrections, the weak hands sell to the strong hands who have realized that Bitcoin is an accumulation game. Bitcoin is not a get-rich-quick scheme. Bitcoin is about power. By buying Bitcoin, you are choosing to protect the fruits of your labor from the injustice of the current monetary and financial system.
So, if the price of Bitcoin drops 30-40% in the coming weeks, you will not sell your BTC in a panic. If you understand Bitcoin, you know that there is no point in selling your BTC against the U.S. dollar or any other weak money.
The best thing to do is to remain a Bitcoin HODLer no matter what. This strategy is currently profitable for almost 100% of the people who have bought Bitcoin. It is a simple but proven strategy. No need to try to reinvent the wheel. Act simply to take full advantage of the Bitcoin revolution.
The second major goal for Bitcoin is to see its market cap equal and exceed that of gold, which is currently around $10T. This used to make gold bugs like Peter Schiff laugh a few months ago, but now nobody is laughing anymore.
Everyone has realized that Bitcoin can achieve this goal. It will do so over the next decade. Bitcoin is a 2.0 version of gold that has only advantages in a world where everything will become digital.
With the current price of Bitcoin, we have already reached a significant equivalence. One kilogram of gold has about the same price as 1 BTC. Again, you won't see any Bitcoiner partying. All this is just one step in something much bigger than Bitcoin will be in the years to come.
Once Bitcoin passes the gold market cap, there will be no more limits. Bitcoin will be on its way to a market cap of at least $100T. Those who read this article today will call me overly optimistic. They were the same people who were saying that when Bitcoin was $100.
For them, Bitcoin could not reach $1,000. It was the same for the $10K, the $20K, ... With Bitcoin, nothing is impossible. You should never make the mistake of underestimating a monetary revolution like the Bitcoin revolution. The time of Bitcoin has come, and the digital currency invented by Satoshi Nakamoto will eat everything in its path.
It's up to you to decide whether you want to be part of it or not.
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