“Central bank exist to make sure everyone has fun staying poor”
Currently we are seeing bitcoin goes for a shortage crisis. There is not enough bitcoin in existence that meets current demand so the price is being pushed up dramatically, every 4 years bitcoin goes to something called halving. This is where supply gets cut in half. And the most recent halving took place this year in May. So before May from 2016–2020 everyday 1800 Bitcoins coming into existence every single day on average. After May that got cut into half to 900 bitcoins coming into existence. Since the halving took place in May we started to see a huge increase in demand for bitcoin and for the first time we have seen institutional investors driving the bull market.
In the last 24 hours we have seen companies like Grayscale bought 10,550 bitcoins, Cash App buys on average 40% of 900 newly mined BTC coming into existence and also Paypal which is first worldwide online payments system who recently entered the market has also been buying 70% of newly mined BTC. So we didn’t even took into consideration grayscale by 10,550 BTC we only look upto Cash App and Paypal, they are buying more than actually BTC been mined into existence. These are some of the reason why the price of BTC dramatically rise in past couple of weeks because there is not enough of bitcoins for everyone, the demand is so high and supply is getting even lower.
So what does it mean to average investor
Companies like Paypal, Grayscale and Cash App they dont need to wait for dip. Bitcoin at 18,000$ is still an amazing price for the institutional buyers as they are in long term business plan. So consider carefully if you are waiting for dip because even if you see 30% dip in the bull market the question is at what price bitcoin is going to shoot up before those types of dips come.
So now is the time to invest in bitcoin.