Bitcoin at $ 500,000 | Investor place

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The Right Outlook for Crypto Today… Snowball Adoption… Important Price Predictions… an Invitation to a Special Live Event Tonight at 7 PM ET with Luke Lango and Charlie Shrem

Last week, bitcoin and the broader crypto market suffered a lightning crash.

Prices have yet to rebound from recent highs, leading some crypto bears to predict that the price of bitcoin will drop back below $ 40,000.

Let’s say it happens …

And now what?

Is the “game clock” investment running out, so if you buy now you’re stuck with losses?

Could bitcoin under $ 40,000 represent the beginning of bitcoin’s decline into uselessness?

As investors, we often confuse market prices with intrinsic value. It’s understandable – the price is in our face all the time. It’s on our phone, whenever we need to scratch that itch.

Intrinsic value is difficult to quantify and open to debate. And that’s even if you take the time to try to calculate it.

But a sure-fire way to make life-changing wealth is to recognize when the market price of an asset does not adequately represent its true value, and then to be in a position when the masses wake up to imbalance, pushing up the markets. soaring prices.

So, do I know the intrinsic value of bitcoin and other digital assets? No.

However, it’s a bit like the old Ben Graham quote, “you don’t have to know a man’s weight to know he’s fat.”

In this case, I don’t need to know the exact intrinsic value of the crypto sector. I just need to know that its adoption is growing like crazy, suggesting that future prices will be considerably higher.

*** Globally, retail investors, professional investors, and the business community are all looking to crypto, suggesting significant price gains in the years to come

Below I have created a raw visual – please excuse my lack of art.

The blue parabolic line represents the global adoption of crypto.

The green volatile line represents the prices of crypto assets.

As you will see, the green price line is ubiquitous, although it is loosely anchored to the overall blue adoption curve.

Now if I looked at this chart from a short term perspective, the green price line is incredibly important. After all, due to the volatility, I could easily buy “high” just before a sell-off, leaving me sitting on painful losses.

However, when looking at this chart from a long term perspective, the blue line is what is important.

This is because as long as it follows the “up and straight” path, the price will eventually catch up.

This helps to illustrate what is essential to remember today …

What matters most to the long-term crypto investor at this point in the game is adoption, not price.

*** So where is the crypto industry in terms of adoption?

Well, let’s just look at a handful of recent headlines.

This latest drop in the price of bitcoin was brought about by the entry into service of El Salvador with its use of bitcoin as legal tender.

But let that work out in a moment – bitcoin is now legal money in El Salvador.

And it won’t be the last country to take this step.

In June, Paraguay proposed a bill that would make bitcoin legal tender. Of course, they could be beaten in the hand by Ukraine.

From CityAM:

(Ukrainian President) Zelensky – a vocal Bitcoin evangelist – has previously called on ministers to turn Ukraine into a crypto-friendly nation …

The plan, according to Professor Vyacheslav Evgenyev, is for Ukraine to make Bitcoin legal tender by early 2023 and create a “dual currency country” where Bitcoin sits alongside the fiat hryvnia before it is potentially introduced. as the dominant financial structure.

Meanwhile, Argentina, Brazil, and Panama all supported El Salvador’s move, which could lead to their own adoption of bitcoin as a fiat currency at some point.

*** Closer to home, institutional dollars continue to flow into the crypto industry

Yesterday we learned that billionaire Steve Cohen, owner of the New York Mets, is investing in a new cryptocurrency trading company.

From Cohen:

While the cryptocurrency market now represents a $ 2 trillion asset class, we are still in the early stages of institutional adoption.

Remember, hedge fund billionaires Paul Tudor Jones and Stanley Druckenmiller have already embraced the crypto industry. Last year Jones said this was only the “first round of bitcoin and there is still a long way to go.”

Meanwhile, on Sunday, CoinTelegraph echoed Cohen and Jones’ belief in the start of institutional adoption:

Institutions that invest in Bitcoin or embark on digital currencies as a payment mechanism are still in their infancy.

Also yesterday, the popular trading platform Interactive Brokers announced that it has launched access to cryptocurrency trading on its platform.

From their CEO, Milan Galik:

As financial markets evolve, sophisticated individual and institutional investors are increasingly looking for allocations to digital currencies as a means of achieving their financial goals.

And it’s not just here in the US Last week we learned that Switzerland has given the green light to crypto trading.

From the Wall Street Journal:

Switzerland paved the way on Friday for more trading of bitcoin and other digital assets in the country by authorizing a new digital exchange.

The SIX exchange said its new SIX Digital Exchange, or SDX, will allow investors, through regulated institutions, to trade, settle and store digital tokens through a single site, supported by “Swiss standards for supervision and regulation. higher ”.

Frankly, adoption is happening everywhere, and it is accelerating.

*** While the shorter term price predictions are not where we should be focusing, let’s add a few for fun.

Bloomberg just released its September issue of Bloomberg Crypto Outlook.

From the report:

We see Ethereum on track towards $ 5,000 and $ 100,000 for Bitcoin.

The portfolios of a combination of gold and bonds appear increasingly bare without Bitcoin and Ethereum joining the mix.

By the way, that price prediction is for the end of this year.

Our (prediction) describes a simple, but logical, way for Bitcoin to reach $ 100,000 by tracking the performance of # 2. Ethereum (up about 300% in 2021 through August 6), which we consider highly likely, especially after last year’s reduction in supply.

The years after the halving saw the greatest appreciation, and 4x in 2021 would be quite tame for the No.1 crypto compared to 55x in 2013 and 15x in 2017.

Meanwhile, famous fund investor Cathie Wood puts the price of bitcoin even higher if we look further – specifically, $ 500,000 in bitcoin in five years.

From Business Insider:

Ark Invest CEO Cathie Wood expects bitcoin to climb to $ 500,000 in five years, and her firm’s belief in the ether has grown significantly …

Its price prediction depends on whether companies continue to diversify their balance sheets into bitcoin, the largest cryptocurrency by market value, and whether institutional investors start allocating 5% of their funds to it.

If that happens, “we think the price will be ten times what it is today,” she said. “So instead of $ 45,000, over $ 500,000.”

*** Summary, significant growth is coming – it will be volatile, but it is coming anyway

With that in mind, I invite you to join crypto experts, Luke Lango and Charlie Shrem, tonight at 7 p.m. ET. They are hosting their very first Crypto Code event which explores the huge wealth generating opportunities in the crypto industry today.

Here is Luke describing the evening:

Tonight at 7 p.m. ET, I am sitting with my colleague and legendary Bitcoin investor Charlie Shrem at our very first Crypto Code event, where we will tell you about our exclusive system for choosing the best cryptos on the market.

This system is the real deal. It produced an average gain of 760% in our model crypto portfolio.

And tonight, we’re going to tell you all about it.

If you are still skeptical about the crypto industry, I understand. But if so, that’s just one more reason to join tonight and learn. There is no obligation. At worst, you become a more sophisticated investor.

But I think once you become more aware of how big this is, you will join the millions of investors who see it as a unique investment opportunity.

Click here to join Luke and Charlie, and see you tonight.

Have a good evening,

Jeff Remsbourg

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