There were few charts making rounds on Twitter and Reddit about how exchanges are running out of Bitcoin.
In other words, the bitcoin that is getting mined is not anywhere close to the demand in the space.
At some point, Grayscale alone was buying up more bitcoin than what was being mined. Then the demand from Square and Coinbase growing crypto consumer base was adding more demand.
In the midst of these shortage cries came PayPal with its 300+ million users into the Bitcoin space.
Now, the shortage of Bitcoin has become a real issue with the institutions that are looking to acquire more for their customers and the exchanges that need it as base trading currency.
We haven’t even mentioned the companies that are looking to hold bitcoin as their reserves in place of fiat.
Bitcoin crossed the $15000 mark in the midst of this unprecedented demand.
And yet, the industry experts say ‘this is not even the start of Bitcoin shortage woes.
The limited amount of bitcoin is not enough to go around for the people who will be coming into this space in the future.
The days of measuring in mBTC are coming
It will not be long before we start talking about Bitcoin in its fractional denominations of milliBTC (or mBTC).
How do you make people feel that they own something if you cannot talk in whole numbers?
For instance, instead of saying I own .1 Bitcoin for $1500 which seems too expensive in dollar terms and too meagre in terms of Bitcoin possession, what if I told you I own 100 mBTC at $15 each.
Now that makes me feel a little better about my prized possession.
From the mBTC we might journey into measuring Bitcoin in Satoshis which will make my milli stash look even bigger.
What has all that to do with saving in Bitcoin?
That background was required to impress upon our readers that it may be time to start accumulating Bitcoin before it becomes unattainable.
At its current price, owning a whole bitcoin is quite a feat for many. However, the explanation we went through earlier is to encourage people to know that we do not have to own a full bitcoin.
A fraction today might be a stash in Satoshi terms in the future.
When you approach Bitcoin from in mBTC or Satoshi terms – you will find it enthralling to accumulate.
Why should I save in Bitcoin instead of fiat or gold?
Most banks charge fees to hold your fiat. There is a rumor that we are going to be moving to a negative interest rate banking in the near future.
When negative interest rates are introduced, people will be charged fees along with a negative interest rate for holding your money.
Fiat also victimizes its holders through inflation.
If you happen to live in a country with 5% inflation and negative interest rates are 2% and bank fees of 1%, you are losing 8% for just saving your money in fiat.
We are at a lot higher inflation around the world right now.
Let that sink in.
You are being penalized for saving your fiat at a bank.
How much gold do we really have on earth?
No one knows for sure.
There have been numerous allegations about governments around the world manipulating the gold supply to keep its demand ‘high’.
One article on Forbes probes manipulation in the gold market.
Many believed that Aluminum was better than gold and platinum until someone proved that it is abundant all across the globe and the prices went to ground.
Unlike Aluminum, Gold has a better history as a metal of value, so we do not think something as drastic will ever happen to gold.
However, the point is, Gold is still inflationary in its supply. Yes, its inflation is controlled by governments but the fact remains.
We actually like Bitcoin and Real Estate better than fiat and gold.
Real Estate is the only asset that we cannot make more of (well, until we make Mars habitable and then even Real Estate may not be as ‘limited’).
However, many markets around the world are highly inflated in Real Estate values.
Experts expect that the prices will see a sharp drop similar to 2008-09.
The point is, while the Real Estate itself is not inflationary, the valuation and the tactics that institutions use could be.
Artificially inflated prices tend to fall once in a while and could prove costly to those who got into the space at the peak.
Still, we like Real Estate better than gold and certainly more than fiat.
What about other investments?
We are not saying there are no other investment opportunities. For instance, there are stocks, ETFs, Startup funding, IPOs, buying small businesses, etc.,
However, none of those have an upside that, in our opinion, Bitcoin and some cryptocurrencies have.
With stocks, you need to know which stock to get into and when to get out. Experienced traders say ‘house always wins if you don’t know when to walk away’.
With startup funding, most of the startups go bust and even those that do succeed lock your funds up for years upon years.
Buying small businesses comes with a lot of inherent risks, capital requirements and personal commitment.
Bitcoin is the only investment that has the potential, in our view, to keep climbing up higher and higher in the coming years and one could exploit that upside by just holding it.
Institutions FOMO could make Bitcoin unattainable
As more and more institutions start FOMOing into Bitcoin, it could become even more expensive to buy.
Of course, Bitcoin is very volatile and could crash to zero tomorrow (which seems very unlikely at this point of its evolution but a caveat is nevertheless prudent).
That is why, we personally like dollar cost averaging and investing in small amounts. For instance, we buy a $100 here and $100 there.
You could start by putting money that you save on other expenses. For instance, if you decide to stay home and eat homemade meals instead of eating out, that $50 or $100 you saved that night could become your Bitcoin savings.
Even if you lose – you only lost what you would have spent in a restaurant. However, if Bitcoin ends up doing all that everyone ‘expects’ to do – then those small savings could become meaningful in the future.
DYOR and see if Bitcoin appeals to you! But do so before it becomes unattainable.
Thank you for reading and sharing this article. We appreciate you.
Stay safe and healthy!
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