Bitcoin (BTC) Makes You RICH: Why 1000% Return now!! 6-Minute Crypto
Welcome to 6-minute crypto series. Every time we just give you the most valuable content in 6 minutes. This time we talk about why Bitcoin can make you rich and how to have a 1000% return in Bitcoin in the long run.
Today we want to tell you three key points on Bitcoin. That’s it. No big deal. Just three points.
Disclaimer: we are not financial advisors, these are not investment recommendations, this article is just for educational purposes only.
First, why need to buy a quality asset?
Imagining in a theoretical world, there is 1 million dollars and 1 asset only which is a house, so the house is worth 1 million. On the second day, suddenly there is an extra 1 million to be printed without any reason, so there are 2 million dollars in total. Number of assets remains the same, just one house, so the house is worth 2 million.
Most importantly, if you just hold the original 1 million dollars and do nothing, on the second day, you can just buy half of the house only!! As the price of the house appreciates to 2 million dollars with money printing, you just have 1 million to buy half of the house) meaning your money is depreciated by 50% in just one day!! Too horrible, right?
In reality, we are playing the same game. The central bank continued to print the money but the number of quality assets remains unchanged.
In the past twenty years, we can see the Fed has printed the money every year, meaning your cash is depreciating every year (around 7% on average annually) that you may not even know! In 2020, the Fed has printed extra money by 24%!!, meaning your money is depreciated by around 20% (1/(1+24%)-1 = 20%, not 24% depreciation). So it is very unfair, what can we do to protect ourselves?? Let us tell you our solution!
Second, a limited supply of 21 million Bitcoin forever!!
Bitcoin was developed by Satoshi Nakamoto and he wrote a Bitcoin whitepaper in 2008. This White Paper can be described as one of the most important articles to humankind in the 21st century. It has completely changed the world and brought a new digital asset, cryptocurrency. It describes how Bitcoin use blockchain technology without the involvement of the third party. You can click here to read our 1-page summary of the Bitcoin whitepaper. Bitcoin is a shared ledger or database to record all the transactions and no one can tamper. The maximum supply of Bitcoin is fixed at 21 million units. Because of the beauty of blockchain, no one can change the algorithm and supply. Unlike the central bank, they can print out money whatever they want.
Third, how to calculate a 1000% return?
The current total market cap of gold and bitcoin are around 12 trillion and 0.74 trillion dollars respectively. When comparing Bitcoin to gold, there are several big advantages. First Bitcoin is a digital asset and gold is physical. Meaning it is very easy to store Bitcoin, you can just download an app and store it. Second, it is easy to transfer to someone. You can use the app to do that. Third, Bitcoin can be used in a cross-border payment, you can send it to other people who stay in another country and avoid high remittance fees without the need of a third party.
So it is not surprising to see the market cap of Bitcoin can achieve gold’s market cap in the long run. Here is a simple math, if we assume the total market cap of Bitcoin can catch up to gold’s. Then divided by 21 million units which is the maximum supply of Bitcoin, the price can achieve $571,428! For being conservative and simple, let’s make a discount, assuming our long-term target price is $350,000 per unit of Bitcoin. Compared to the current price of Bitcoin of $35,000 in June 2021, there is a 1000% return!! So it is not difficult to explain why Bitcoin can go to the moon!!
Frankly speaking, Bitcoin and cryptocurrency are assets that have very high volatility, can up or drop 10-20% in just one day. We do NOT encourage you to all-in cryptocurrency. For a well-diversified portfolio to control risk, you can allocate 10-20% of your total investable money to cryptocurrency, as a way to control the volatility of the whole portfolio. For the other 80% weighting, you can invest in the stock, bond, gold or property.
Summary: Just three key points
- To counter the continual money printing, we need to buy quality assets
- One of them is digital gold, Bitcoin, which has a fixed supply of 21 million.
- Bitcoin is a new digital gold and better than physical gold in terms of ease of storage and trading across countries. So Bitcoin’s total market cap can catch up with the market cap of gold in the long run. Being conservative, the price of Bitcoin can rise to $350,000 per unit!
But the problem is, how to buy Bitcoin? You can buy Bitcoin easily via Binance which is the largest exchange in the world in terms of the trading volume. We recommend using the largest exchange in the world which is more secure. You can click the following Binance link to register an account and buy Bitcoin immediately! This is our Binance code, we both can enjoy a 10% discount on the trading fee! A win-win situation!
Register account at Binance and use our Binance discount to buy Bitcoin now (we both can enjoy a 10% discount!!): https://www.binance.com/en/register?ref=CGDDILI6
If you are interested to read the full version of Bitcoin white paper, please click here: https://bitcoin.org/bitcoin.pdf
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