Central Bank and the FED being chief culprit, have painted themselves into a QE-corner. Exponential growth Technology is the worlds saving grace. Always has been. They are unable to increase rates because the value of their notes becomes worthless over time. Hence the absence of foreign buyers of their treasury notes, which requires the FED to take up the slack, and be the buyer of first resort! A Ponzi collapses because of a lack of new investors to pay the old. They must assume exponential expansion of their balance sheet, to prevent a multi-decade depression that occurs from asset price implosion. See 1929 and the depression, and Japan’s lost decades post 1989.
The stock market is skittish about how bond yields on the longer end of the curve have been on the rise due to an expected rise in inflation, Fed Fund futures tend to overestimate future inflation by an average of 1/2 a percent than actual rates a year into the future. An inflationary decade for the ages seems a likely outcome, as we are seeing in commodity prices and PPI & the CPI index.
As the Global FIAT currency races toward zero remain firmly in place. Countering this backdrop is the rise of technologies growing at exponential rates which help to create and sustain substantial wealth (to the investor class) in the form of greater efficiencies at a lower cost. Blockchain, AI, and other forms of bleeding-edge technology are formidable forces that could go a long way to averting a massive crash, revolution, and global war, unlike prior key turning points in history when such technologies did not exist!!!
When the German economy improved post-WW1 in the 20s, Germans came out of their austere economic hibernation and started to spend which sent inflation soaring. This spending together with the burdensome repayments due to War reparations required the Reichsbank to print much like the FED is required to do so today, to meet its debt payments which spurred hyperinflation. The price of gold in German marks soared in the 1920s.
ENTER BITCOIN GOLD FOR THE 21st CENTURY
The price of bitcoin could follow as the world sits at record low interest rates, & record-high debt, and the printing continues to accelerate.
The S-curve Tech adoption shows the speed at which new, game-changing are accepted into the marketplace. At first, the majority don’t understand nor support and often fear the technology. Then once the technology grows to the point where it becomes useful, mass adoption takes place which is seen in the near-vertical portion of the curve.
Eventually, the right part of the S shows slowing adoption as the technology becomes more fully integrated into society. Some technologies such as the internet continue to grow exponentially as new use cases are created.
Bitcoin currently has about the same number of users as the internet had in 1997. But Bitcoin is growing faster. By 2025, with Bitcoin users continuing to double each year, the total number will exceed 1 billion people. It took the internet 8 years to get to this same level. Plotted logarithmically Bitcoin is doing incredibly well. Which will bleed into other cryptos of course.
One of the most important metrics is Bitcoin’s NVT price or network value to transaction. It is showing how Bitcoin is currently undervalued. As Willy Woo writes, NVT values the network using its on-chain investor volume. Akin to a PE Ratio. NVT Price is calculated by multiplying on-chain volume by the 2 year median value of NVT Ratio. That network valuation is then adjusted to price by dividing by the coin supply.
As you can see bitcoin dips below NVT price on rare occasions.
Mid-2013, Jan-2015, Feb-2018, Mar-2020, May-2021. In every case except in early 2018, bitcoin has been at a major price low, an opportune entry point.
Whales are born during the time when it most difficult to buy. Traders are often too focused on short-term time frames, to catch these moments because they are emotionally wedded to their daily PnL in their trading accounts. They often fail to accumulate at Spot to grow their HODL position.
Market timers, and picking the right altcoins that outperform bitcoin will go a long way in helping to turn an average Altcoiner’s net worth ~5 figures to a one comma 6-figs+ or even two commas 7-figs investor at a quicker rate (But with increased Risk of course).
HNWIs such as bitcoin billionaire Brock Pierce are not traders. They could greatly enhance their substantial wealth by proper market timing methods, designed to catch the major trends such that very little trading is required except at key tops and bottoms. I myself have mixed trading / HODLing / Shitcoin “investing” before finally landing on #DEFI
In Bitcoin’s first 500 or so days. Bitcoin had zero USD value. Much like HEX below a penny!
Early adopters and supporters, helped form the backbone of a vibrant and intelligent community. Many of them ex Bitcoin holders, myself included.
Along with the creator and author of the code Richard Heart, who took it upon himself to design and create a product built on the Ethereum public blockchain, that was more optimally designed and beneficial to the actual users and investors.
High Yield has never tasted so good. As the price chart shows.
If Hex is to follow a similar S curve adoption as many game-changing technologies do, then buckle up for a near-vertical ride up the S. A Dollar seems an attainable price level in the coming months.
HEX rewards the savers in the community, through new coin supply. Which are minted, only once their staking contracts have matured (ending your contracts early is of course possible, but can incur penalties to your principal HEX coins depending on, at which point you decide to terminate your contract).
Inflation is greatly beneficial if YOU are the direct recipient of the work, you initiated by purchasing a HEX T share. The price of a Share is a function of the demand and supply of the token, and the earnings that a share can deliver. Defi is the best use case of blockchain I can think of, and HEX is the purest product on the market after doing my research.
Become an early adopter today.