Over a 49 year period (between 1959 and 2008), the US dollar grew to have a total supply of $7.5T.
That supply then doubled from 2008-2020 (~$7.5T to ~$15T) – meaning the Fed essentially printed close to a half century’s worth of dollars, in just over a decade. 🖨️
Downside: This isn’t great for the US dollar, as wild increases in supply debases its overall value.
Upside: When this newly printed cash finds its way into scarce assets (like crypto), it tends to have the opposite effect – increasing the assets value, instead of lowering it.
If you took $0.01 and doubled it every day for thirty days, you’d have.... $5.3M
You're not going to be able to double your money every 30 days, but when you’re playing the long game, you don’t need to – investing $5,500 per year compounding at an average of 10% per year would make you a millionaire in 30 years time.
Liquidity (aka: fresh cash) is re-entering the system. You know what that means.
Here are the top earners in crypto (by revenue) so far in 2024. Revenues support profits → profits help to grow the underlying app/protocol/project → growth contributes to token values over time.
The image in the chart below is the ‘Slope of Enlightenment’ chart, which is a crypto-fied version of a chart used to explain the Dunning Kruger Effect.
It shows just how early we all are to crypto. Bitcoin is the only project to have well and truly realized/completed its core vision.
All winning sectors/projects have had to trudge through the Trough of Disillusionment, in order to reach the Slope of Enlightenment, and begin growing again.
Some won’t make it out – many will die in the Trough of Disillusionment… But if you can identify enduring sectors/projects (that are well poised to make the leap) while they’re at their lowest, most hype-deflated states – that’s where the opportunity lies!
Despite mixed performance since reaching record highs on March 14, BTC remains stuck in a wide range stretching from $50,000 to $70,000. Despite this range-bound price action, Bitcoin remains fairly valued as observed by onchain analyst Root.
There's good and bad news on the Bitcoin horizon this month (we won't even talk about altcoins). But historically Q4 has seen sizeable gains. October (Uptober) should be the start of the Banana Zone.
