Helloooo out there in the world of Bitcoin!
My name is Trevor and today I wanted to talk to everyone about something not a lot of people are talking about right now.
Seeing how prices have dumped on everyone lately probably has a lot of people looking for some hope.
Now I might not have short-term hope for you...
What I'm about to discuss today is a very valid case for Bitcoin to go through what is being called a Bitcoin Super-Cycle!
For those of you who may have never heard of this or done research on this topic, I'll introduce you to it today!
I will break it down for us more as we continue but I also wanted to provide you a quick description of what it means.
For starters, it's extremely Bullish for Bitcoin's price overall in the long run.
But what is the Super-Cycle exactly?
Every 4 years Bitcoin has its infamous halving where the total supply of Bitcoin rewarded to miners securing the network gets cut in half.
As a result of this, the scarcity of Bitcoin naturally goes up!
The 4 years it takes for Bitcoin to go through those changes is called a Cycle with the result of Bitcoin's price going up, very significantly, after the halving.
We know what a cycle is and have our own opinions on how they work.
Introduce the aspect of supersizing it and we get a way different picture when we break it down like this.
A Super-Cycle would mean that the 4 year cycle gets prolonged and turns the cycle into one that lasts 8 to 12 years longer...
A Super-Cycle would break the traditional notion that only one single Bitcoin Halving happens in an entire Cycle.
A Super-Cycle would mean that we would have multiple halvenings occur over the course of just one huge time-period.
It is easy to think that the only thing "Super" about a Cycle is its lengthening of time.
That is the largest aspect of it yes, but it isn't the only driving factor that will just make a Super-Cycle magically happen.
Essentially, a "Super-Cycle" would double or triple the amount of time Bitcoin becomes more scarce as the price rises.
Bear Markets would basically only last a matter of a few months to a year or consolidate sideways between a very expensive price range.
So if a Super-Cycle were to happen to Bitcoin, when would that happen, how would it happen, and what would it look like?
What are some of those driving factors that would actually push Bitcoin into such a thing?
Well, surprise, surprise, it would look very similar to how things are currently playing out with Bitcoin's price.
For Bitcoin to enter a Super-Cycle such as this it would need to tick a lot of boxes to achieve this of course.
So before you whiff in all this hopium let me show you what those checkboxes would look like so that you can be the judge!
- Bitcoin is programmed to rise in price when more people participate
- This Bull Cycle has not seen a blow-off top yet with a 60% to 90% correction
- Bitcoin is no longer speculative
- Bitcoin has been successful for 10 years
- Bitcoin is trusted by major financial institutions
- Bitcoin becomes more regulated and accepted by countries/governments across the globe
- Hyperbitcoinization sets in
- The "Contango Effect" occurs in the Future's Market
- Bitcoin is more accessible, cheaper, and easier to use than previous cycles
- Bitcoin is no longer used by criminals or people trying to hide funds
- Bitcoin becomes a true hedge against inflation
- Bitcoin survives it's first true test of a worldwide financial collapse (COVID-19 Dump)
- Bitcoin does NOT have a price rise on monthly charts that goes up 100x
- On-chain data continues to get stronger such as the Hashrate hitting new ATH's again
- Bitcoin becomes used as Collateral
- Bitcoin's Stock-To-Flow Model gets invalidated with a longer Bull Run
- Bitcoin experiences multiple Halvings during one single multi-year Bull Run
Now look at this list and tell me that doesn't look like we are already in the midst of a possible Super-Cycle?
You can't!
Now please, don't get me wrong, this is something that might not actually happen for a long time.
Or at the very least, take a lot longer for us to realize we have already been in one this entire time...
There are really only a few things on this list that we have not seen yet because it is impossible to see until they happen.
Those two things would be:
- Multiple Halvings
- Hyperbitcoinization
So if this Super-Cycle theory were to become true these are the only two fundamentals hodling it back.
It would lead to around a decade long pump of Bitcoin and technically 2021 would be the first year of that Golden Age!
Now before we literally get ahead of ourselves here we still need to take a step back.
These are two very big catalysts that make or break this theory from becoming true.
All of the other driving factors would also need to hodl up strongly enough to one day prove this theory true.
The last Halving that occurred was in May of 2020 and it was much later than most people anticipated.
The current Stock-To-Flow model suggests we have already reached the top of this 4-year cycle but it looks nothing like the top in years' past.
The halving took slightly longer than usual and this Bull Run appears to be stretching into next year now.
We can easily see that Bull Cycles have been increasing in length and have yet to see the current one officially end.
We very well could be in the beginning stages of a Bitcoin Super-Cycle.
And although we may not have seen Hyperbitcoinization yet, there are definitely signs of it beginning already.
Hyperbitcoinization in its official use of the word would mean that Bitcoin starts to take the shape as one of the main standards for global currency.
Regulation is where that process begins...
It won't be the only standard and it might not be the standard everywhere of course.
The fact of the matter is it will eventually be even more easily accessible, cheaper to use, more environmentally friendly, more widely accepted, and more understood by the average everyday human being.
I truly feel that process is already being worked on when you look at things like the Lightning Network or Ethereum.
Things may not quite be where they need to be at just yet for true massive adoption to occur today.
In 5 years from now though?
We will likely look back at this and get goosebumps remembering how naive we all knew we were being back in 2021 ??
That's all I have today everyone!
Be careful out there with all this volatility taking place.
Volume is about to get even more insane as volatility shakes out the men from the boys.
Stay safe and I hope everyone has another BEAUITFUL day in crypto!
This is Trevor's signature ??
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