October 1, 2022

Why is bitcoin “insanely bullish” and promising currency

Since the beginning of summer, the Bitcoin exchange rate mainly could not decide on the direction, however, this still did not was able to cool the ardor of many enthusiasts devoted to the first cryptocurrency in the world. They are still confident that Bitcoin retains the potential for significant growth.

One such crypto enthusiast is James.Todaro, managing director of investment and research company Blocktown Capital. He recently posted a series of super-bullish Bitcoin posts on Twitter.

Is Bitcoin Really a Bubble?

First of all, Todaro decided to debunk widelythe widespread belief that bitcoin is just a speculative bubble, like the South Sea company in the 18th century or tulip mania that swept Holland a century earlier. According to Blocktown Capital, Bitcoin compares favorably with these two collapsed speculative markets in that over the 10 years of its existence, it has already gone through many periods of growth and decline. The two above-mentioned bubbles lasted only three years and ended in an irrevocable collapse, while Bitcoin is characterized by higher liquidity and vitality. In addition, he demonstrated convincing cyclical recovery and reached new historical highs.

Next, Todaro pays attention to profitability.Bitcoin, which he could bring at current levels to investors following the strategy of regular and fixed purchases at average dollar value (DCA).

So, if in 2010 the investor monthlyspent a little more than $ 83 on the purchase of bitcoins, now his reserves of this cryptocurrency would cost $ 73,000,0000. Even 2018, which became one of the darkest in the history of bitcoin, would still bring investors a profit of $ 300 for the $ 1,000 invested per year. And if there was a lucky person who would not miss a single month in the history of Bitcoin without investing $ 83.33 in cryptocurrency, now his bitcoins would cost about $ 76.22 million.

Record return on investment

No wonder such an impressive price increasecaused an incomparably high rate of return on investment (ROI) in bitcoin compared to the hottest stocks in the technology sector. The cryptocurrency has left far behind even such successful and fast-growing companies as Netflix, Amazon and Nvidia.

Next, Tododar gives another graph,showing the size of the capitalization of the bitcoin market compared to other currencies. We can see that the bitcoin market continues to be very small - surpassing the Colombian peso and the New Zealand dollar, but inferior even to the Czech koruna. The bitcoin market looks extremely tiny against the background of gold, with which it has often been recently compared.

However, Tododaro draws an optimistic conclusion from this, believing that such statistics provide Bitcoin with a bridgehead for large-scale growth.

In conclusion, he emphasizes that previously arrived inover 10,000% were available only to accredited investors. Now, bitcoin opens up equal opportunities for everyone, allowing everyone to join the high-yield investments.


ps. I still think that Bitcoin is a hyip like tulip mania. Here I do not believe, unconvincing.