This Bull Run Will Be Like No Other - The Most Important Thing To Do
Bitcoin, finally, just went over $120k. Judging by all the interest in bitcoin by LARGE firms with LOTS of money, bitcoin should have been much, much higher by now.
Surely, we should all be millionaires by now!
Where is our alt-season?
Ethereum is still only $3,000, it basically hasn't moved since last cycle. If alt-season were really here, it should be $6,000 by now.
Everything is messed up.
What is the winning strategy to survive and thrive through this time?
Stop Thinking In Dollars
We are used to pricing things in dollars. We were waiting for bitcoin to go to $1,000. Waiting longer for it to go to $10,000. Now that it is $100,000 we are really chomping at the bit for $1,000,000.
In the past, the dollar was not on the verge of going away, as it is now.
Today, the penny is dropping fast, soon it won't even be worth a satoshi.
I doubt that T.H.E.Y. will call it inflation, (galloping or hyper) because everything is going to go in two ways at once. Housing is about to fall off a cliff. While food is going to go up 100% a year. (probably not that much, but it will sure feel like it.)
Our current problem is to figure out what is an asset, and what is trash.
- Money in the bank is trash. If it isn't eaten by inflation, it will be bailed in.
- Gold will be going up in price. Do not keep it in a safe deposit box at a bank.
- Suburban Home prices will drop, making 2008 look like a practice session.
- Car prices will drop as everyone tries to sell whatever they can. New cars will probably go up in price.
- Food will be one of the best investments you ever made.
- Toys - televisions, jetskis, motorbikes, RVs… will be on fire sale.
- Stocks will probably go up and up until they are shown to not exist.
- Bitcoin will be so valuable as to not be sold on exchanges.
During this coming time, we will be working with a market where prices are sky-rocketing or dropping like a stone. We will have no idea how much we can get for our paychecks.
HODL Bitcoin
During alt-season is where most crypto traders try to make lots of money. Trying to swap in and out of alts, to increase their bags. The problem is, most swap out into stable coins. And the dollar it is being pegged to, might drop out from under us. (which may have a positive effect on things like Tether and/or make USDC worthless)
90% of alt-coins are going to go away. If the projects haven't really gained traction by now, they will be forced into oblivion by the economy. If they are not essential services for a new internet, or are the top 5 (maybe 10) transaction tokens, then they are gonna be going away. So, HODLing any of these will just be holding onto future dust.
On the other hand, bitcoin is going to be VERY valuable. People are talking about 0.1 BTC to retire, or 0.03 making you one of the wealthiest in the future. As bitcoin becomes the world reserve currency, or the thing that everyone saves in, that is a lot of people sharing a very small amount of bitcoin. After this year, people will no longer talk about owning an entire bitcoin. And in the future, satoshis will be considered a significant amount of wealth.
So, hold onto your bitcoin.
Trading cryptos
All the big coins will get an ETF, just in time for bitcoin to destroy the ETFs. Bitcoin is going to move so fast and violently that the ETFs will not be able to keep up. Every day you are in an ETF is a day you will be losing money compared to just holding BTC. And so, many people will wonder why they are in an ETF, and not just holding bitcoin directly.
This won't just affect the BTC ETFs, this will destroy the entire market. Faith lost. Shenanigans uncovered. It will be bad.
Big money is coming to cryptos, with all of their computer trading and manipulation tactics. Crypto is about to look like the stock market. Controlled by the market makers. Things will no longer make sense (like bitcoin staying at $100k for so long, while massive buys are happening.)
The problem will culminate in, "how much paper can be converted to bitcoin". The doorway is only open for a little bit more, and then we get to a point where no one excepts fiat paper. At that point, those who want to move markets no longer have an easy/cheap way to do so. Suddenly, when they start having to use real assets, their power dwindles to how much bitcoin they have. And when the employees start demanding to be paid in bitcoin, they will bleed out, while trying to maintain their power.
Trading cryptos will no longer be like what we remembered.
Start thinking in terms of parts of a bitcoin. The average American house may drop to 0.1 bitcoin by the end of this year. If you have several bitcoin, this is cheap! But, it will cost even less the next year, and the next. And, we aren't even to 1 bitcoin per house yet.
Start thinking in terms of calories and tools. All the toys that so much money has been spent upon, are about to become worthless. When food continues to increase in food, people will try selling everything they can, but just like putting groceries on the credit card, this will soon come to an end. The money will run out, and the price of food will make people choose food or rent. Rent and Ramen will no longer be a viable option. Money is only a convenient way to store future calories. Put food in its proper place.
People talk about generational wealth, when they talk about cryptos or silver. But really, that is a misnomer, because money won't be that important in the future. As we become far more self-sufficient, finding the small communities/tribe/family that we belong to, our need for money will be a small portion of what we think of today. So, do not try to hold on to tightly to your cryptos. When you see a good deal for homestead land, or need to get your new family member across the country, then use what you have. Things get a lot better in the future. Especially after the fiat currency is forgotten.