The Four Drivers Set To Catapult Bitcoin To $500k

With cryptos plunging this past year, let me ask you perhaps the most important question anyone has asked you in 2022:

“If you could go back in time over the past 10 years and make just one investment with the benefit of hindsight, what trade would you place?”

Statistically, there is a right answer here. The trade you should place is a buy order on Bitcoin at the end of the 2015 bear market, or one at the end of the 2018 bear market.

You see, Bitcoin has this “thing” that it does every few years. It booms. It crashes. Then it bottoms. And it creates the best investment opportunities in the history of financial markets.

January 2015: Bitcoin crashes to $170. A year later, it’s up 170%. Two years later, it’s up more than 500%. Three years later, it’s up more than 10,000%.

December 2018: Bitcoin crashes to $3,000. A year later, it’s up 150%. Two years later, it’s up 1,200%. Three years later, it’s up more than 2,000%.

This is just what Bitcoin does. It booms. It busts. It booms again.

Well, guess what? Bitcoin is back at it. Following the 2020-21 boom, Bitcoin is busted in 2022, and it’s creating the same generational buying opportunity as January 2015 and December 2018.

So, leave the time machine at home. You won’t need it. History is repeating itself before our very eyes, and today, you can capitalize on a true potential millionaire-maker opportunity.

In other words, the new crypto bull market could be just around the corner.

The Crypto Bear Market

Historically speaking, crypto bear markets have bottomed right around the realized price of Bitcoin at the time. The realized price is the average cost basis of all Bitcoin investors in the market. This happened in 2015,  2018, and almost again in 2020.

It makes sense to me that investors don’t want to sell at a loss, so they stop selling up to the point of where it’s not profitable. That means investors would be selling at a loss at anything under the realized price.

This is what I said on my podcast on June 20th, Episode #84 “Where is the Bitcoin bottom?”

The realized price of BTC today is about $23,300. BTC currently trades around $21,000. If history repeats, the big BTC selloff will end around these levels and consolidate around $20,000 for a few months.

And that’s exactly what’s happened. Bitcoin has done exactly what it’s done in the past and exactly what I predicted.

But this time, there are 4 additional demand drivers that will skyrocket the price of Bitcoin.

I know what you’re thinking, “It hasn’t moved in months. It’s dead.”

But that is only because the Federal Reserve raised interest rates 13x, a staggering increase that sucked trillions of dollars out of the economy.

And yet even with the most recent interest rate increases, stocks have continued to drop, but Bitcoin has held. That’s extremely bullish on its own.

When they backtrack and lower rates, which absolutely will happen, Bitcoin will move so fast you won’t believe what’s happening.    

The 4 Demand Drivers That Will Catapult Bitcoin

Let’s go back to the absolute basics: If supply remains the same, but demand increases, then price has to increase.

But what if supply shrinks, and demand increases?  

Then we have a dramatic price increase.  

This is why we are seeing such incredible levels of inflation. Governments around the world locked us down in an attempt to stop the spread, in many cases shutting down factories and disrupting global supply chains. Then, they printed trillions and trillions of dollars and handed them out freely to their citizens.

Consumers did exactly as we would expect. They bought more goods and services with their newfound money, and those dollars were chasing a smaller supply of goods.

Supply dropped, demand increased, and prices had nowhere to go but up.

It’s the same setup now at work in Bitcoin.

So let’s take a look at 4 incredible drivers of Bitcoin demand and what this means for the price of Bitcoin:

1. Credit Card Rewards

We’re about to see an unprecedented demand shock from another area no one is talking about: Credit cards.

Let me explain. Many credit cards have started offering Bitcoin rewards. With Visa, you can get up to 2% back in Bitcoin. And with Mastercard, it’s 3%.

And this brand-new type of demand will eat up what remains of the Bitcoin supply like nothing else ever has.

Think of it this way: If you could get paid in an asset that’s averaged 230% annual returns for the last decade – as Bitcoin has – would you take anything else? Would you take dollars over Bitcoin rewards? What about Diners Club points or airline miles? Keep in mind that the average person earns $548 a year from typical credit card rewards.

If a Bitcoin rewards credit card had been around 10 years ago, the average credit card user would be sitting on an $11 million fortune of Bitcoin rewards today.

Bitcoin rewards certainly sound better to me. In fact, all other rewards are nearly worthless in comparison to Bitcoin. People are already going crazy for Bitcoin rewards.

The average credit card is used for around $5,000 of spending per year. But Bitcoin rewards cards are averaging  $30,000 per year in spending.

People are using these cards 6 times more than traditional credit cards because they’re eager to reap the benefits in Bitcoin!

We’ve never seen this level of transactional demand for Bitcoin before. Per year, credit cards process $35 trillion in transactions globally. That’s a massive pile of money – and a chunk of it is headed directly for Bitcoin.

Let’s go back to my model. How many Bitcoins per day is this going to take away? Let’s be ultra-conservative and say just 1% of credit card transactions involve a 2% Bitcoin reward. Based on these estimates, you’re looking at up to 276 Bitcoin in new demand per day by the next year.

There’s not nearly enough Bitcoin to go around. If the credit cards keep up their rapid adoption, our numbers show they could eat up the remaining supply in as little as two months.

So two months from now, we could wake up and all the new Bitcoin will be accounted for.

2. Bitcoin Miners

Miners are the people providing the computing power that are necessary to run the Bitcoin blockchain. They solve complex equations to verify transactions, and this is what keeps the network secure and humming along.

Since May of last year, the Bitcoin code has issued 900 new Bitcoins per day, which is released through the miners. Now at current prices that's the chance to earn around 50 to 60 million worth of new Bitcoin every day.

But there's one problem. Historically Bitcoin miners haven't been able to hold the Bitcoin they mine. They've had no choice but to sell it to fund their operations. Ever since Bitcoin's been around, it's been plagued with negative connotations to the drug market, to pornography and money laundering.

This made it a taboo for the gatekeepers, the miners of traditional finance to touch. So Bitcoin miners haven't had access to traditional sources of capital, but what we've seen is major adoption takeoff in the crypto market over the past few years.

Huge players coming in like Morgan Stanley and Goldman Sachs means now for the first time ever miners can raise money through the capital markets.

So they can issue shares which are equity or bonds, which is debt to raise money. And they can hold their Bitcoin. They no longer have to sell them to fund their operations.

At some point in the near future, there will be no new supply of Bitcoin hitting the market.

This is going to change everything.

3. Millennials and Gen-Z

Millennials are the largest generation demographic in America. And they’re set to inherit about $68 trillion of their parents’ wealth.

Let me ask you a question that you must answer honestly: What are they going to buy as their preferred store of value, Bitcoin or gold?

Millennials have grown up with digital assets their whole lives. So Bitcoin makes a lot of sense to them. I speak to a lot of young people who are independently wealthy. They’re worth tens of millions of dollars through either private businesses, crypto, or a combination of the two. For them, crypto is a core holding.

When I ask if they’re adding gold to their portfolios, they say, “Oh, no. I’m buying Bitcoin. That’s the way I sidestep what’s going on in the rest of the traditional fiat currency world.”

The “Millennial Effect” shows up in the numbers, too:

1 in 4 millennials who earn at least $100,000 in individual or joint income owns cryptocurrencies. And another roughly 1 in 3 expressed interest in using them.

If they deploy even a fraction of that wealth into crypto, that’ll send demand for Bitcoin soaring even higher.

4. Mass Adoption

When Bitcoin was trading around $400, less than 10 million people had it - there were between 3 and 7 million people who owned Bitcoin.

And now about 150–200 million people own Bitcoin. And by 2025, we’ll have over a billion people using Bitcoin…

By the end of the decade, multiple billions of people will have joined this league..

You truly do not need to be a brilliant economic scholar, or somebody blessed with this divine sense of what the future is going to be to figure out that if you take a resource that is finite − and you have billions of people coming into the market who want it − you're going to get higher prices.

That single piece of research is what I have relied on. And I’ll continue to rely on it all the way to the end of this decade where 90% of investors have exposure to Bitcoin.

But we are a long way from that.

Again, I talk about Bitcoin a lot because as Bitcoin goes, so goes the crypto market. If you've got billions of people using Bitcoin, that means you've got billions of people using Ethereum. And that means you've got billions of people using alt coins as well; they all get dragged along for the ride.

So what do we do during periods like this when we're down? We see the whole world is saying, "[Look at] the crypto losers, we always knew it was just a bunch of B.S., none of this has value, and look at Terra.”

And if you bought crypto and are sitting on losses, you may feel like a loser too.

You're going to see that. You'll see that every time we go through a bear phase in Bitcoin.

And then a year or two later, Bitcoin soars again to new highs… And again and again. That cycle is going to continue.

Are companies pulling back from adopting the asset or moving forward to adopting the asset?

Are there more users signing up and buying cryptocurrency and setting up new accounts like on Coinbase?

Yes! Adoption is always increasing. Despite Bitcoin’s pullback from its $64,000 high down to $17,000.

So buy the dip. Keep buying; you got a discount, you got a great opportunity.

And we had a slew of announcements that came out during that time, like JP Morgan saying we're now opening up Bitcoin to all of our customers, not just the wealthy ones. We saw an announcement about PNC bank. That's the 5th largest bank in America, an incredibly conservative bank out of Pennsylvania that used to kick people off their platform if they did crypto.

Why The Biggies?

Why is this adoption happening from these real big players?

Everything always comes down to the money trail. Show me the money.

Fees. Greed.

The big players can monetize it. These companies are not making as much money as they used to in other asset classes with their fees. So now they're looking at something where they can charge exorbitant fees and increase their bottom line.

Unlike the last Crypto Winter, when nearly every institutional player hastily backed away from their early commitments to “examine” Bitcoin as it dropped 85%, just two months ago, the biggest institutional player in the game said it’s entering the space.

I’m talking about BlackRock, the world’s largest asset manager with over $10 trillion under management.

BlackRock announced a partnership with crypto exchange Coinbase.

Let that sink in for a moment.

BlackRock says its institutional clients want access to this space so badly that it’s teamed up with Coinbase to provide them an access point to crypto assets.

According to Bloomberg, BlackRock said the focus of the partnership with Coinbase, the biggest U.S. crypto-trading platform, “will initially be on Bitcoin.”

It’s impossible to overstate how bullish this is. Despite all the volatility we’ve seen in crypto over the past nine months, the biggest institutional investor in the world has just publicly announced it’s joined the party.

And look at the numbers: Bitcoin is down 66%, Ethereum is down 65%, and the whole space is down 64%!

Three Arrows Capital, Celsius, and Voyager have blown up. Even an investigation into Coinbase by the SEC is underway, and yet, BlackRock is still coming in.

BlackRock would never risk its credibility if it wasn’t 100% convinced Bitcoin and crypto assets were here to stay. And it would definitely never align with a partner (Coinbase) if it thought its partner would get shut down by the SEC. All this must mean something, right?

But let me add in a disclaimer here: This does not mean the volatility is over.

What it does mean is a new buyer has entered the room. A buyer with pockets so deep it can swallow this whole space 10 times over.

And with a buyer like that in the room, should we drop another 50% from here, I no longer fear that we’d be down for an extended period.

We still may drop another 50%, but I can virtually guarantee we wouldn’t stay down for long… That’s why I’m getting ready to double down again.

Why I’m Doubling Down A Different Way

I’m buying lots of Bitcoin right now. But I’ve got a different way that reduces risk:

Mining.

With the new antminer S19 machines, I can mine Bitcoin for around $10,000 per coin. That’s the cost of power to produce one new Bitcoin.

Not only can I buy it at that price, I can buy it at that price five years from now.

There are plenty of machines still working that are 7 or even 8 years old.

So it’s possible these machines will still be mining and producing Bitcoin 8 years from now, when Bitcoin is $500,000 per coin.

I’m not telling you this to be a humblebrag. You can partner and mine right alongside me.

I purchased a 40-foot shipping container, transformed it into housing 300 machines, bought a 7-ton power transformer, and have a technical wizard who can connect the machines to a mining pool, program them correctly, and maintain them when they break.

If I had several million in liquid, I would use all of the slots myself.

But since I don’t, you can buy the machines from us and take some slots.

Action to Take: Reply to this email for my Bitcoin mining Investor Packet.

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