Price of Bitcoin will hit 1 million in
five years time. Possible? The short answer is yes now don’t look so shocked
do not believe in what I say per se I will strongly encouraged all to listen with an open mind and then decide for yourself And the next question is should we buy
bitcoin now stay tuned while I break it down for you a bit about myself I’m a trader with 10
years of experience trading in Forex commodities equities as well as in
recent years cryptocurrency I was an ex auditor in regional hedge fund
and private equity firms so before I move on right please remember to slap the like button
and leave any comments or questions and I will be more than willing to help so
it might take only 15 seconds of your time but it really meant a lot to me so
thanks so today as what the title suggests right I will be talking about
Bitcoin and most importantly Will the price hit 1 million in five years time
I’m sure most of us will be quite confused about this topic as not many
will know what exactly is Bitcoin right in the first place please hold on
I’m see where the stream is working so ultimately right the whole
objective on this stream is I try to keep this as short as maybe less than 15
minutes or less than 10 minutes I try to justify why it is probable that the BTC
will reach 1 million dollar per Bitcoin in five years time and if so how should
we treat Bitcoin so this is a very big question for most of us so let me
briefly explain what is Bitcoin first because I’m sure most of us would be
kind of beginners of what’s going on this is more like Bitcoin for dummy so
in 15 minutes you kind of know everything about Bitcoin if not at least
80% 90% than most of the other people out there so you know there are many
components about Bitcoin so if I were to give our elevator pitch what is Bitcoin Bitcoin is the truest money we should
have had since the beginning of time and just to make it easier to digest right
why is gold always considered the standard for money
even during like the ancient days in Egypt and Mesopotamia why is it always
gold right why is it always gold because gold (i) it is finite the fact that is you
can’t find it everywhere okay (ii) Out of all the precious metal out there it is the most
stable metal (iii)it’s actually very difficult to find gold like it involves a
team to scan gold after which you need to get the labour you need to feed your workers to dig up the gold and after so much effort you can only dig up just a bit
of gold and it is expensive so bringing up bitcoin. It actually
operates in the same way so bitcoin is like digital gold but it’s
different gold is like something tangible that you can carry it around but Bitcoin is something like a digital intangible asset but the fact that Bitcoin is scarce make it so unique I’m sure
many of you guys will be wondering what do you mean by scarce because
Bitcoin is just BTC right? For all of you who are beginners of what it is about, let me
explain do you know in Bitcoin the maximum number of Bitcoin that can be in the whole market circulation
it’s only 21 million so once 21 million of Bitcoin is mined right
there’ll be no more that’s it no more other bitcoin, is just 21 million
so this is like a very scarce resource there’s no other way to create not like
those kind of banks monetary policy whereby the banks or government can just keep
printing more currencies again and again infinite.. but Bitcoin is different
it’s something like gold, that’s scarce Internet of money what do I mean by this think about a time before the Internet
how centralize the flow of information was basically right if you wanted
information you could get it from few major players like New York Times
Washington Post and others like them today thanks to the internet right
information is decentralized meaning you say that you can communicate and consume
knowledge from around the world with a click of a button
so bitcoin is like the internet of money it gives you like complete control over
your money you and only you alone can can assess your funds no government no
banks can actually freeze your account or confiscate your holdings it’s a form of
money that no government or bank can control only you yourself
so decentralized what do I mean by decentralised meaning to say that there’s no one computer to hold the ledger with Bitcoin every computer participates
in the system is also keeping a copy of the ledger also known as the
blockchain so if you want to hack the system right you have to take down the
thousands and thousands of computers which are keeping a copy of the ledger
which is also constantly updating it so as you can see it’s near impossible to
do so so the security level is that high And the last thing that I think is
the most important is it is verifiable what do I mean by this you know it’s the
type of currency that is not built on trust because if you look at the back of
the US dollar note right it says In God We Trust trust in this dollar it is
money it is legal tender but can I go to the Fort Knox to count all the gold? No! But Bitcoin can verify everything everything is time stamped that’s verification it is not a
currency built on trust you trust based on your own verification this bring me
up to something that’s quite off topic so pardon me for a while, allow me to digress
you know recently I saw many YouTube advertisement right there talk about
trading about their strategy about randoms courses they are giving showing
random screenshots of how profitable they are but come on man
you could be just showing some profits and not your losses and is more like
selectively showing I strongly believe that stats speaks louder than words so
click on the link below if you want to check out my stats so just a side note
this content is actually partly sponsored by eToro
so if you have the desire to learn more about trading but don’t have the luxury
of time click on the sign up link below message me on LINE @ alphasmurf and I
invite you to my private telegram group so some key things you have to bear in mind. The concept of halving oh this is a bit confusing for most of you guys but I
think I have to explain you know the concept of halving right every four years
look at this counter 146 days to the halving what does it mean every four
years the mining of a block reward is cut in half
so in short right having means that the block reward it’s kind of this process
is predetermined and will continue until the last Bitcoin is mine sometime in the
year 2140 so the process can have long-term effects on the price of
Bitcoin over here so you look at a Bitcoin historical
record record in year 2009 January every 50 Bitcoin is created every 10 minutes
so during the first halving in November 2012 25 Bitcoin created
per 10 minutes right the price of 12.22 cents so the second
halving July 2016 12.5BTC every 10mins price 657
and the incoming one that why you see over here
which is May2020 what would be the price like this is going to be very
important for conceptual reason for me to explain in the later part of this
whole stream I can see many confused faces over here but I can briefly
explain on the technical side of Bitcoin transaction so you know about this right
all Bitcoin transaction transactions are put into blocks
you know blocks and once they are placed into blocks right they are
verified and this is done through miners to cut out all this confusion of those
who don’t know what is miners. They have economic incentive to provide a lot of
computational power and electricity for this verification process so basically right when a miner discover a new block he will get rewarded based on a number of shares hash that was submitted so that they
will have miners that put in a lot effort electricity computation right
computation power to make sure these blocks are verified okay that’s the
whole thing up now this blockchain there’s a reason why Miners will get this
benefit of Bitcoin so now comes the important part
how is prices of Bitcoin affected just I say about a price that’s right at the
start of the presentation I talked about ultimately the price of Bitcoin maybe
you hit a certain level now this is the concept part everything is controlled by
supply demand I’m sure most of you guys know about this right so which means as
long as there’s buyers they will create the demand and if there if there are
suppliers there are sellers you create the supply but I’m not talking about
those retail buyers and sellers that like us because bearing in mind of the size
of this Bitcoin Market right just you & me selling one or two Bitcoin will not affect
the supply and demand equilibrium so it was just a relatively
unchanged I’m talking about those market makers those whales large investors that
decide to suddenly right sell 10,000 Bitcoin today or buy 10,000 bitcoins
morrow that will drive price up and down so now that we understand this concept
right so who exactly contribute to the d-man let’s stop at the Memphis bias all
right bias you and me those wills those big investors that buy Bitcoin
competitors what do I mean by this those aterial in recent news right I
also can call it geopolitical factors for example in the
early stages of China introduction of the cryptocurrency
which resulted which could possibly result in the declare of Bitcoin price
action because people know that there’s alternative of Bitcoin like this China
market the demand will be lesser that will affect the D – well so what about a
seller seller are those people so but you must bury mouth one thing Bitcoin
the market the Bitcoin market is a bit different from a typical market of the
currency market or the commodities market or the other equity markets
whereby there’s buyers already man just like this involve one more factor the
factor is what the – this is one of the most important thing that I’m sure most
people do not consult this a lot people don’t as then is that – I’m not holding
on to the block rewards you know they get this financial benefits right they
are not holding out we may be in a pass but is very rarely so think of it this
way if you are minor over this goal like a typical my right your incentive is to
my and sorry to the local currency circulation your straight to the market
circulation so similar to – right they are the main contributor to the seller
puh contributing to the supply so why is this important we just mentioned the
concept having right this is important why I’m going to prove Bitcoin price you
should a paragraph us so let’s talk about supply today the supply the
selling power Bitcoin every day the supply doesn’t inherit Bitcoin I’m a
mind every day and the price of bitcoins are all seven one five today so you can
check out the price right is the usual here let me just do a quick one now the price is seven one seven one
seven one seven five but let’s assume it’s seven one seven one five oh four
easy competition okay so which means for the price to stay equal at equilibrium
right you have to need equal amount of demand
which means every day that some buyers the original of chopper 8 million of
Bitcoin chopper a million USD of Bitcoin okay to stay equilibrium as long as
there’s more of one side there shifts the price to one level more demand shift
a price up less demand shifted the US the price level no so that’s how it
works but we just thought about huffing so
which means by May twenty twenty twenty twenty the amount becomes supply that is
generated in the market will be just nine harriet padilla times seven one
five oh that is six point four million do you know what’s the concept of this
why is the impact this means that previously you just need chopper 8
million demand to barely to have this equilibrium of price suddenly after
having event that supply cut into half but the demand Ramallah stay unchanged
or maybe in maybe more in the future I explained later that so which means what
would that do to the price so this comes to the important power here you know
there’s this model called stop to flow model it’s a pricing model to predict
the price action to be the price action of Bitcoin let me explain like this okay
this is the so this is the Bitcoin price action model let me make it bigger so
that you guys can see getting here like this is clearer so as
you can see from here right the very colorful one is the price the actual
price of become over the years okay so let’s talk about the first huffing the
first huffing occur somewhere around November 201 to November
look at this right after this huffing the price which was previously at $10
jump all the way up to $1,000 in 201 201 for let’s talk about the second huffing
there was some time in I think it is July 201 201 six after that event the
price of Bitcoin look at this previously the price was like well 800 but no
nobody hurt it’s like four or five hundred because of the sound correction
it pushed all the way up to near nineteen thousand nineteen thousand
there’s the second half a picture this the next huffing in in somewhere around
me 2020 it doesn’t take a genius to know why is it what what would be the price
could it be like but now it’s come the important part
someone will just ask me hey hey alpha if this is public information and
everyone know is going to hit 100,000 in like one or two years right why isn’t
everyone buying Bitcoin you know I have to reason that can briefly explain I don’t think many people have have done a
good job in answering this question why is not everyone buying Bitcoin so let me
explain the first reason is not many people know
about Bitcoin I’m not sure whether this is working let me make it I take and
close this this this is a bit laggy so not many people actually knows about
Bitcoin first reason not many people adopt Bitcoin so let’s
put into perspective how long do you think it would take for the mainstream
to adopt Bitcoin some people say five years ten years
whatever well let’s look at the previous revolution of money in money right in
the sixteenth century there was this radical proposition to replace go with
Joseph gains written on paper so if you think people find Bitcoin weird right
imagine the time when people would hope that go is no longer their money bits of
paper ah like you gotta be kidding me right then and it was radical that it
took 400 years and we become broadly developed in the mainstream society so
the next one was in 1950s credit card so with credit card right people were told
that the piece of people that may have with the government still on them and
legal tender and now pieces of plastics with a company number on them and that’s
it don’t worry you’ll get paid eventually and it took them almost 50
years for that to become mainstream I remember back in 90s in the 90s right my
uncle went to was telling me that he went to Europe and he had those credit
cards and he couldn’t even use that to buy anything at all so you can see the
adoption level is so slow no not until 8:15 years later people start the
started subtle adopt it so the second thing is not many people understand
what is Bitcoin about so there are a variety of survey that are done with
slightly varied results right but I would say that the number of people who
will currently use Bitcoin it’s around 0.6 or less than 0.6 percent in the
entire whole world 0.6% so which means out of 1,000 people probably there’s
only six that’s how little yeah so according to this CNBC Personal
Finance of eighteen thousand eighty nine twenty seven percent said that it is too
difficult to understand eighteen percent said that the belief that is a scam and
the rest say that the risk is too high and they are not interested you can see
that those who know about Bitcoin and passionate about this as for you guys
that are still listening down here right it’s a very small and passionate niche
population in the whole world not gonna say that all these data science not a
saint that or those people who know further to state that science about this
modest stuff like that literally less than 0.1% knows about it so most people
don’t don’t like looking at this kind of stuff so you should be proud of yourself
yes to here listening to all this stuff in a deeper level so you know what even
Warren Buffett right that time say that Bitcoin bitcoin is a rat poison do you
say bitcoin is a rat poison initially right but stop here for a moment do you
know that what is in Berkshire Hathaway portfolio what is in Russia had away
portfolio Bank of America Bank of New York
Goldman Sachs JP Morgan all the big banks are in his portfolio would Bitcoin
be a conflict of interest with whatever he’s investing maybe there’s a reason
why he said it’s a rat poison in the first place but this is something for
you to ponder about so my viewer is there is there a chance that Bitcoin
value will go to 1 million the answer is yes let me shoot this one Saturday you
can see a bit more over here the answer is yes however I will recommend you to
put all your eggs in one basket don’t go all-in on Bitcoin and you don’t
have to have no exposure to be quite as well you need to determine for yourself
your risk appetite and how much you are willing to invest so is their chance
become your diffusive value yes as well as mentioned there’s various unforeseen
reason like your political reason the protocol preachers and maybe one day
hackers against get so refine that they can hang thousands of all computers at
the same time which is highly highly unlikely I don’t know this is a unknown
factor so this is going to going to be aware exciting journey for the next few
years so the next question is how to enter and when to enter and buy Bitcoin
let’s mention write some my traders know that I tend to see charts in a different
light so as I told you those few months ago I told them do not jump into Bitcoin
don’t buy yet unless they have a bigger risk appetite and willing to have huge
draw downs over the next few months I even post on eToro Fitz talking about
they should not jump into trade let me show you so I posted in ether office let
me see if I can show you which I think should be over here
ah let’s see okay this is the one let me shift this over here so you can see I
posted this like few weeks ago I told them even last night on few weeks ago
don’t jump into trick yet based on historical track all I talk about is
having issues I talk about the technical analysis and the way I see chat
I’m seeing that there will be one more down move in coming before the next up
move and and even the a move could possibly be a correction for for the DA
move so there’s a lot things you have a my before entering but if you are guided
don’t have a bigger risk appetite and willing to lose those big draw downs all
20-30 percent up to you but for me the time you start right yet so so as I told as I say right this dream
is partly responsible you Toro so if you have the desire to learn more about
investing trading and how to how to and when to ante cute all right you can
message me online at a fast month so an hour you to this private telegram group
I will keep this shot and hopefully I will see you guys soon in my future
crash course okay hope you guys have a clearer understanding on what this is
all about and feel free to leave any comments or questions and I’ll be more
than willing to help you guys so with that I will cut the stream thanks for
tuning in bye guys