In my opinion

Hey there, just a quick note.

Bitcoin has thus far come off its late 2022 bottom of ~$15.5k USD. At time of writing this, price is ~$30k USD. In what appears to be the inception of a new bull market, we’re also amidst a confluence of rather positive supply/demand fundamentals that have provoked our attention.

Bitcoin’s yearly issuance rate will be reduced by half in April 2024 via what is called the halving-https://www.investopedia.com/bitcoin-halving-4843769. The amount of newly mined bitcoin will drop from current 6.25 every 10 min. to 3.125, from 328,500>164,250 annually until 2028 when it’s scheduled to reduce by half again.

This, while total circulating BTC supply at current prices suggests as per charts that not much of the supply is for sale.

Yet the scale of potential demand as per available dollar inflows has increased meaningfully. Interests across a wider spectrum of awareness & necessity are at levels Bitcoin hasn’t experienced to date. Here are just a few of the players with ~$27 trillion USD AUM that are actively working on garnering exposure to Bitcoin for clients.

Perhaps one of the most promising developments has been BTC’s growth in Africa.

https://yellowcard.io/blog/why-is-bitcoin-trading-growing-rapidly-in-africa/

Jack Dorsey, co-founder & former CEO of Twitter, co-founder of Block Inc. which focuses on helping various Bitcoin initiatives has been diligently dedicated on expanding Bitcoin in Africa.

https://www.coindesk.com/markets/2021/02/12/jack-dorsey-jay-z-put-500-bitcoin-into-trust-supporting-africa-and-india/

But all of this wouldn’t be possible if it wasn’t for Bitcoin’s 14+ years uptime of reliable operation, favorable macro conditions & political/global governance environment increasingly proving the merits of Bitcoin’s architecture & efficacy.

Significant progress is also being made on Bitcoin’s UX side. Scaling transactional throughput globally with less friction for users as infrastructure connectivity options continue to proliferate, lending itself to adopting a new wave of users.

VC dollars investing into Bitcoin development has also been steadily increasing to support BTC infrastructure scaling & utility. Here is just one firm exclusively focused on that. https://ten31.vc/content/100mm

In conclusion, it is my view that we sit amidst a rather unique inflection point here. One in which indicates that the scale of demand is simultaneously seeking defense against precipitous dollar devaluation & necessitated by need to escape the perils of a concerning trend-over-reaching gate keepers . This is occurring amidst a backdrop of participants that are seemingly compelled to hold their existing bitcoin well into future.

In 2009, Bitcoin’s pseudonymous creator Satoshi Nakamoto  wrote, “It might make sense just to get some in case it catches on. If enough people think the same way, that becomes a self-fulfilling prophecy.”U

Until next time, peace!

**Please note that albeit Bitcoin has a total fixed supply of 21M bitcoin, each bitcoin consists of a smaller denomination  called “satoshis” or “sats” for short. As prices increase, this is for transactional purposes. Therefore you’re not obligated to spend/buy/hold 1 bitcoin, the system is designed to & often facilitates transactions of much less.** https://academy.bit2me.com/en/que-es-un-satoshi/

Charts courtesy of- https://twitter.com/therationalroot?s=20

Image courtesy of- https://twitter.com/Melt_Dem/status/1673362112653975554?s=20

Good day,

One of the more interesting developments with Bitcoin adoption over the last few years has been institution’s, corporation’s & business’s increased appetite to hold some. While some have purchased the bitcoin to add to their treasury, others have participated via a fund as a proxy. Each with their own unique objective.

Here’s a website that is solely dedicated to tracking various entity’s bitcoin allocation as per public info. & disclosures. https://bitcointreasuries.net/

It’s mainly an interesting development because the aforementioned are typically some of the most prudent cashflow managers, many businesses alike understand that cash is the lifeline of their operation. And given Bitcoin’s volatility, you wouldn’t think it’s desirable for these entities at first glance.

But having said that, it’s difficult to continue to ignore bitcoin’s outsized returns over its 14-year life span (see charts below), while equally becoming impossible to ignore what has happened to the value of fiat dollars after years of devaluation via inflation, https://infogram.com/value-of-one-us-dollar-in-the-last-50-years-1hzj4o3exm13o4p/. Sitting on excess cash reserves has necessitated the need to insure against value erosion. Bitcoin has become a worthy allocation in this regard thus far.

Legendary hedge fund managers like Paul Tudor Jones, George Soros, and Stanley Druckenmiller have made room for it in their portfolios. MassMutual, an insurer founded in 1851, purchased $100 million of bitcoin in December 2020. Large pensions & endowments such as Yale, Harvard & Brown which are some of the most sophisticated yet conservative investors in the world own bitcoin. The Houston Firefighters’ Relief and Retirement Fund (HFRRF), the pension fund for the City of Houston’s firefighters purchased bitcoin for the defined benefit plan’s portfolio.

One of the most noteworthy corporate Bitcoin advocates & accumulators of course has been Michael Saylor, CEO of MicroStrategy which has amassed ~140,000 bitcoin on their balance sheet since fall of 2020.

Despite who’s been jumping in, a new trend of accumulators has emerged & providing Bitcoin continues to work as effective as it has thus far, I don’t see this trend subsiding either. And given what I believe is the continuation of devaluing fiat currency globally, it will only accelerate in my opinion which perhaps makes not having a Bitcoin allocation strategy a financial blunder for the ages!

Until next time…….

Charts courtesy of https://twitter.com/case4bitcoin

“When you arise in the morning think of what a privilege it is to be alive, to think, to enjoy, to love …”- Marcus Aurelius

Hey there,

After a 7+ year hiatus since my last post, hello once again.

Suffice to say things have changed quite a bit since & it would’ve been wildly prescient to say in the least had you predicted then, what has occurred over last several years!

Financial markets are at peak uncertainty, society often finds itself in precarious spots & politics, well, it’s entertaining when not embarrassing!

Yet here we are & if you’re reading this, it’s perhaps not such a bad sign. I’m hoping you’ve at least had the zen to weather through it all. I know it wasn’t easy for many but having said that, I really do believe we’re amidst a fundamental change that albeit will continue to be somewhat challenging, will usher in an era of new found prosperity.

While the site was in hiatus mode, I never stopped investing capital & time in financial markets. I remain keenly interested in macro & geopolitical affairs & I continue to observe technological trends emerge & evolve.

I believe capitalism, markets & economy can be reinvigorated to flourish IF we can realize the promise of distributed & sovereign systems/networks such as Bitcoin.

And so in the coming months & years, that’s where eHoldings focus will continue to be, on Bitcoin, as we’ve since 2015.

In the meantime, please check out the site, perhaps a little different than you remember it. Consider signing up to my “notions”-a free periodic email about what I’m thinking as it pertains to investing, markets, money & finance in general.

Until next time!

“It’s tough to make predictions, especially about the future.”- Yogi Berra