Only 1 Thing Matters - Bitcoin SURVIVED and will Continue to Survive by Itself
The 2020 Market Crash has revealed that our society and many industries are vulnerable and failure prone.
A majority of assets perform well in a Bull Market – you can blindly throw darts at a board and be successful. Bear Markets reveal inefficiencies and pockets ripe for disruption. The beauty of Nasty Bear Markets is that the junk never comes back.
Earnings & Fundamentals matter in Bear Markets. Many Unproven Technology Companies, IPO’s, Early Stage Clinical Trial Bio-Tech Equities, Pot Stocks, & ICO’s will never recover, but Bitcoin is showing resilience - FOLLOW the SIGNAL.
We are experiencing a Global Liquidity Crisis driven by Global Economic Shutdown. All assets are being stress tested in the current environment, including Bitcoin. Oil has been temporarily disrupted. There are centralization issues driven by two large suppliers: Russia and Saudi Arabia. Many leading companies and once, stock darlings, will not survive without government intervention: Airlines, Restaurants, Hotels, Casinos, and many more.
Decentralization has prevailed as Bitcoin’s P2P Network has deterred disruption. Bitcoin Miners and Pools continue to hash and payout everyday (difficulty is actually projected to go up 5% - signaling more mining rigs/hash has been added during the past 10 days), Nodes. continue to validate, and therefore, P2P Transfers on the Bitcoin Network are business as usual.
Bitcoin will survive because it has the strongest Network Effect in the Blockchain Ecosystem. Miners have more conviction in Bitcoin than Investment Funds and Hodlers. They have long time horizons. They invest in assets with long-term life cycles that cannot be repurposed nor quickly liquidated at fair market value. ASIC Mining Rigs have 3+ year life cycles and can only be used to mine SHA-256 Protocols (almost entirely Bitcoin). Bitcoin Mining Facilities have 5+ year life cycles and are typically restructured warehouses, specially designed for cooling mining rigs. On average, it will take a miner 18 months to breakeven after deploying capital to mining rigs, facility buildout, and electricity expenses. $BILLIONS are spent on this ecosystem. Some of the most valuable energy contracts belong to miners. This isn’t an investment, its a marriage.
Bitcoin Survived while many traditional assets are going to go bust. Its been stress tested and is the leader of the Cryptocurrency Asset Class.