Fixed Supply Assets
Thread -
Definition- Asset that has predetermined maximum supply that cannot be changed
Today we will cover Bitcoin as an example-
BTC supply is capped at 21 million coins. 1. In a world hell bent on printing money, Inflation is the biggest pain for all major economies including USA and China
2. This very property makes Bitcoin a deflationary asset. Fixed supply is encoded in its protocol, no central authority or agency can “increase” or “print” more BTC as per their will
3. This gives the edge to BTC as they are decentralised in nature and can be used as most trusted hedging tool against equity/debt positions
4. In March 2025, USA has signed executive order to establish US Strategic Bitcoin Reserve capitalised with approx. 200000 BTC valued at $17 Billion
5. This move establishes BTC has long term store of value similar to that of Gold.
Fixed Assets can give asymmetrical huge returns provided one can manage its portfolio allocation smarty 💫
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A lot of noise over SM on what will happen if FIIs also start selling. See guys, you need to understand markets from all perspectives- Macro, Micro, Political and Social aspects.
Lets Check largest FII selling in last 5 years and compare it with DII activity- 1/2
2/2
FII Selling
October 2024 114,445.89 CR
January 2023 41,464.73 CR
June 2022 58,112.37 CR
May 2022 54,292.47 CR
March 2020 65,816.70 CR
DII Buying
October 2024 107,254.68
January 2023 33,411.85
June 2022 46,599.23
May 2022 50,835.54
March 2020 55,595.18
3/3 What does this data show? Whenever there is aggressive FII selling, DII's will buy in more than the usual. Why does this happen?- 1. In India, currently all the other asset classes have been either systematically killed or became unattractive