Profile picture
BTFD @AnselLindner
, 10 tweets, 4 min read Read on Twitter
1/ #Bitcoin is in a mania. I admit that. People are accumulating. If bitcoin was a typical investment, it would be setup for a 90% sell-off. But this isn't a typical investment.
2/ It's important to understand that #bitcoin is divisible to 8 decimal places. 0.00000001 btc = 1 Satoshi, the smallest unit (that the base layer will recognize).
3/ It's true, #Bitcoin isn't usable for everyday payments at the base level, no cryptocurrency is, but it is good at making transactions that are censored by credit cards and other payment methods. ie wikileaks donations, dark mrkt prescription drugs, etc.
4/ For those #bitcoin users, it doesn't matter what the price is. The level of payment demand can remain relatively low and constant. The variables that matter are govt prohibitions (which creates more payment demand) and stability of the network (which speaks to confidence).
5/ Increases in the price of #bitcoin come from a different pool of demand than method of payment, discussed above. Price increases come from the demand to hold longer term.

These hodlers don't care about the day to day, or year to year volatility, they want to accumulate.
6/ That's extremely powerful being that there will only ever be 21M bitcoins. Today, at $15k, buying a whole #bitcoin is still in the reach of at least 1 billion people in the west who have access to credit.
7/ The other variable I mentioned, stability of the network, got a massive boost in 2017, when users fought off corporate and political attacks. As a network, #bitcoin showed reliability and built trust that it won't be altered by insiders or govts.
8/ So, traditional investors that look at #bitcoin as a bubble don't understand the value proposition or the current incentive to hold.

We have a situation where most hodlers are accumulating and won't sell at any price, plus constant demand for censorship resistance.
9/ A $1000 price of #bitcoin with 10M available bitcoins might be overvalued, but a $100k price with 1M available bitcoins might be undervalued. The decimal is arbitrary.

These wild swings in supply vs demand only happen today in bitcoin. Your typical invest advisor has no idea.
10/ Lastly, #bitcoin is a new asset class and a new economic multiplier (it'll kickoff a new era of growth). The eventual price is much higher b/c available supply will shrink w/o affecting utility for censorship resistant pymts. In fact, new upgrades promise much more utility.
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to BTFD
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member and get exclusive features!

Premium member ($3.00/month or $30.00/year)

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!