Table of Contents
- Best time to invest in market
- El Salvador is continuously Buying The Bitcoin .
- CBDC (Central Bank digital currency)
- Super Halving
- “buy when there’s blood on the streets”
Best time to invest in market
Baron Nathan Rothschild Who wrote a phrase “buy when there’s blood on the streets”
Rothschild, a British nobleman of 18th century age, made his fortune trading foreign currencies and government securities.
He also contributed to the funding of Britain’s war against Napoleon.
Historians believe Rothschild was a skilled trader who had a network of communications that allowed him to see market trends early and gave him the confidence to invest through misguided panics or sell-offs.
Here’s what I have to say about Baron Rothschild today…
When market become uncertain and looks red most of the people got panic and sold their assets at loss , but opportunists convert these events into their profit because their fundamentals are clear because a skill trader knows the Bull and Bear trend are the properties of the market and they are also a part of same coin in our view as we are seeing that market is in red and experts are trying to find out the bottom in crypto for world class assets .
This is exactly what we are seeing in crypto right this moment… and with bitcoin miners specifically.
Why we say miners their is a reason for that their are lot of big mining firms are doing Bitcoin mining and the main point is that they are not transferring the bitcoin to exchanges they are still holding apparently they have better tools to know the market Momentum .
It is no secret that 2022 was a turbulent year in crypto and stocks.
However, I am confident that the year will be another transformative one for the industry if you take a look at the progress and upcoming catalysts within the crypto space.
When institutions understand the story and see bitcoin as an asset class, the price of bitcoin will rise and the best crypto mining companies will be able to benefit from it.
El Salvador is continuously Buying The Bitcoin .
As per the latest update EL-Salvador is continuously buying the bitcoin , Even they are not bothered about bitcoin falling price as per latest update they are not going to change their strategy , as the brazil recently declare that they are working on the Legalization of bitcoin in their country the El Salvador officials invite the brazilin officials to give supports regarding the documentation of cryptocurrency.
CBDC (Central Bank digital currency)
a question that raised during the interview with Gonzalez ,Deputy of the republic of EL Salvador is CBDC is going to clash Cryptocurrency on the question Gonzalez stated that she does not see a clash between cryptocurrencies and CBDC , believing that both will exist together .
in this statement Cryptobirb have a View : as we know cryptocurrencies work on blockchains and CBDC which are going to launch by the nations also work on blockchains but their is a big difference comes between cryptocurrency and blockchains are as follows:-
1. Nodes Centralization
Where in CBDC the Nodes are controlled or govern by the government agencies but in cryptocurrency the nodes are governed by publicly like bitcoin mining where the miners are present in all over world globally
2. Source Code .
in CBDC the source code is not public so we cannot see the motive of code or how much CBDC can be minted but in cryptocurrency’s code are completely open source every body can see also checked its maximum supply and in how may days/time the supply can reached to its maximum , these type of information’s can easily be tracked but in CBDC it can be hide easily and completely depends upon nations governments.
3. Minting
Minting is process in which new supply is generated in form of tokens in cryptocurrency and in fiat new money is printed by the nations governments this process is known as Minting .but in cryptocurrency the amount rate at which new tokens is minted is fixed and can easily be tracked also the minting laws are governed by non editable codes , But in CDBC the minting rules are completely govern by the governments what government want that will happen with supply . and this complete control over money by governments gives difference to CBDC and cryptocurrency’s .
Super Halving
Last year, I introduced readers the ” Super Halving” phenomenon.
The Super Halving, which is a time when there will be no new bitcoins on the market, is a reminder.
This halving is not built into bitcoin’s software, unlike previous ones. It’s instead created by outside forces. It will have a significant impact on the markets.
This thesis is based on a simple idea: Bitcoin miners won’t have to sell their crypto soon to finance their operations.
Miners will now be able access traditional finance lines through equity raises or borrowing, thanks to institutions that have adopted bitcoin. They will be able to keep ownership of the mined Bitcoin on their balance sheets.
The miners will become bitcoin piggy banks. With each new bitcoin mined, their asset bases will grow. This will also reduce the supply of new bitcoin.
Prices will rise even though there is no new bitcoin on the market.
My bitcoin mining portfolio grew by 73% within six months of the Super Halving. Recently, however, bitcoin has been closely correlated with the tech-heavy Nasdaq.
As the Nasdaq has fallen, bitcoin has also suffered. As of this writing, the Nasdaq has fallen 28 %… while bitcoin is down 55% compared to its peak.
Bitcoin mining stocks have been hit hard by the drop in bitcoin’s value.
Average bitcoin miner is down 88 %…. To the untrained eye bitcoin miners seem like they are on the brink of bankruptcy.
It is impossible to be more truthful.
The average cost to “mine bitcoin” is $7,500 across a wide range of names that we follow. This is 75% less than the current bitcoin price.
These companies are estimated to have sufficient cash to continue their operations for two more years.
This is plenty of time to allow bitcoin prices and investor sentiments to recover.
These guys won’t go out of business.
Despite the drop in bitcoin’s value, miners still hold onto their bitcoin and HODL (hold on for dearlife). This is great news for investors.
My team closely monitors the amount of bitcoin that is sent from miners to exchanges.
This shows us how much earned bitcoin miners keep, and which is available for investors, institutions, funds, or other buyers.
As you can see, miners are currently transferring around 89 bitcoin per day… a 14% drop from the 103 they were averaging a day back in January 2022.
This means the average miner has moved from selling an average of 11.4% down to 9.9% of its earnings… Meaning they’re retaining 90.01% of their mined bitcoin.
The following chart gives us the larger picture: The dwindling number of bitcoin available on exchanges.
As you can see, mined bitcoin kept on exchanges is down 23% since the peak in 2019.
I had my team do a deep dive into the financials of bitcoin miners. And based on the latest hoarding data, we forecast miners alone to cause a 98.2% drop in new bitcoin hitting the market per day by next year.
That brings the newly available bitcoin from 900 each day all the way down to 16.
In my opinion, this shows miners are confident bitcoin’s price will rebound.
When bitcoin surpasses its all-time high of $70,000, their balance sheets will grow at least 1.5 times just from the price appreciation. And when it hits $500,000 – as I believe it will – we could see their prices balloon at least 15 times.
“buy when there’s blood on the streets”
By 2025, I predict that bitcoin’s market cap will be worth about $10 trillion. That would translate to about $500,000 per BTC.
If the bitcoin miners continue to hoard their BTC, their shares will explode in price. I believe some will even rival the mid-size tech giants of today.
In fact, 3–5 years from now, I wouldn’t be surprised to see bitcoin miners make up their own sector of the S&P 500, similar to the energy and utilities sectors today.
Friends, I know it’s hard to be bullish when you see bitcoin miners down 60–80%. But when bitcoin rebounds – and history shows after every pullback, it reaches new highs – so will the miners.
Remember, they’re leveraged to the price of bitcoin. So when bitcoin recovers, it’ll act like a slingshot effect.
I saw a similar scenario in the mid-1990s when tech stocks got crushed. Like today, people thought software companies then were glorified calculator makers.
Nothing could be further from the truth. Companies like Microsoft and Oracle rose 2,200% and 1,870% from 1994–2000.
Long story short: There’s blood in the streets when it comes to crypto miners.
They’re being left for dead right now… but once they revive, they’ll be insanely profitable in the coming years – especially if you get in at these insanely cheap prices.
They’re like buying call options on bitcoin.
If you’re looking for broad exposure to this trend, consider the Bitwise Crypto Industry Innovators ETF (BITQ).
It has hefty exposure to miners… but also includes companies in the broader blockchain ecosystem. So, the risk is spread a bit.
Once investor sentiment shifts, I believe bitcoin miners can make you a fortune. All my research suggests you will be richly rewarded for your patience.