Forget Bitcoin as a store of value! Here’s why it’s much more than that…
The store of value and digital gold narrative has taken markets across spot exchanges by storm. Imagine moving ahead from the store of value narrative, as Bitcoin continues to trade above $18000 and consider the fact that $1000 of Bitcoin purchased a decade ago would be worth approximately $100,000,000 today. When @danheld tweeted about this, CZ of Binance commented on it,
“That’s not a “store” of value. It increased so much. Lol”
It did indeed, and this is why @danheld called Bitcoin a “multiplier of value”
So why is Bitcoin truly a “multiplier of value”?
Bitcoin’s market cycles have had a real price multiplying effect. The ATH hit in 2017, came crashing within 30 days however, this time around the price has sustained at this level for longer than anticipated. Nearly 6 months past the halving, the price hit a new ATH, and market capitalization has already crossed the previous ATH.
Positive news from institutional investors is coming in nearly 2-3 times a week, since MicroStrategy and Square’s investment in Bitcoin. The rapid inflow of investments is evident from the volatility and network momentum chart, and investments started flowing into Bitcoin and top altcoins based on market capitalization. This has a direct impact on the price as it ensures that demand is generated on spot exchanges consistently.
Though several altcoins and DeFi projects crossed their previous ATH before Bitcoin did, there was the following drop in price and market capitalization, almost instantly. However, that differentiates Bitcoin from Altcoins. ETH 2.0’s launch is the most awaited event in the history of Ethereum and DeFi, and the network momentum for Bitcoin is still at nearly the same level as last week. The fundamentals are stronger, and its metrics are supporting the narrative. There is a direct multiplication of the ROI, market cap, and fiat equivalent in each trader’s portfolio. Net-adjusted Returns of BTC compared to other top assets and Gold are much higher, the ROI is over 170% YTD. There are several pullbacks in every rally, and we are witnessing the same in the current one, however, $20000 is in sight for most, based on the supply, transaction count, and demand.