Category

In my opinion

A Point of Confluence

By | In my opinion | No Comments

ABOUT E-HOLDINGS

A Point Of Confluence

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 

Not having a Bitcoin allocation strategy is perhaps a financial blunder for the ages.

By | In my opinion | No Comments

ABOUT E-HOLDINGS

Not Having a Bitcoin Allocation Strategy Is Perhaps a Privacy Blunder For The Ages

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

The means of traditional wealth creation have reached an inflection point.

By | In my opinion | No Comments

ABOUT E-HOLDINGS

The Means Of Traditional Wealth Creation Have Reached An Inflection Point

It used to be that your options were limited unless you had a certain amount of wealth or connections when seeking lucrative investment opportunities. Today much of that has changed. As the internet progressed, what was once too big and too inefficient for individuals to acquire, quickly became readily available in abundance. Whether it be Amazon filling and shipping a single book order to your home or sending $500 to your friend across the globe at cost of .50 cents via Bitcoin on your smartphone-to describe this as an efficient and effective democratization of our economic landscape would be a gross understatement!
(more…)

My fundamental truth regarding trading financial markets.

By | In my opinion | No Comments

ABOUT E-HOLDINGS

My Fundamental Truth Regarding Trading Financial Markets

In regards to trading, I believe financial markets are not random (long term) and though being unable to predict their direction at any one given time, they do possess various behaviours that are more probable than others.

Statistics validate our ability to exploit an advantage/edge through the probability of certain TECHNICAL patterns and price action characteristics repeating themselves over the long term which allows a trader to extrapolate a positive expectancy system within the financial markets.

(more…)