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Monday, October 3, 2022

BITCOIN Supply Shortage (Institutional Money FOMO)

FOMO the fear of missing out And right now, institutions everywhere are feeling it. With Bitcoin getting snatched up as quickly as it’s being produced, soon there won’t be enough Bitcoin to go around. And this is when the true price explosion will happen.

But what happens next? Today, I’m going to explain to you why institutions are FOMOing into Bitcoin and why Ethereum institutional FOMO could drive prices up higher than we ever imagined.

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We’re going to be discussing the Bitcoin buying frenzy and how that will lead us into the next phase of institutional buying that will involve Ethereum. In crypto, FOMO is something we usually reserve as a word we use to classify poor retail investors who simply don’t know when the best time to get in is. They see prices pumping, and instead of being patient and waiting for a good entry point, they just pile in all at once.

In this case, it is not a good thing. But what if we weren’t talking about FOMOing in for a price pump but a frenzy to buy up the entire supply of an asset? That’s what we are potentially looking at with Bitcoin right now.

Every day, the entirely new produced supply of Bitcoin is gone before it ever hits the general public. Institutional FOMO to buy Bitcoin. But what happens when all the Bitcoin is gone? And I would have said about six months ago, that didn’t really seem like a plausible question. However, now it is something to think about.

At this moment, there’s still plenty of Bitcoin available. According to a breakdown of the current supply of Bitcoin by blockchaincenter.net, the bulk of coins are still available. And that isn’t even including the 2.4 million BTC available on exchanges.

But here’s the thing, one of the oldest and largest exchanges in crypto, Kraken, recently released its outlook for 2021. And they predict 50% of the top 500 companies in the world will hold Bitcoin by the end of the year. But that begs the question, what the heck are the other 250 doing? You think they’re just simply going to sit around and watch the price of Bitcoin shoot through the roof and all their top competitors buying Bitcoin, and they’re going to decline to stack up Satoshis in their treasuries? Here’s what people are missing. There just won’t be enough Bitcoin out there.

The only hope for many of these late moving companies to get Bitcoin will be when the price gets so outrageous that a company just can’t come in and buy thousands of Bitcoin. When companies buy Bitcoin for their treasuries, they don’t let it go.

That means once these Bitcoin shoppers pull it down from the shelf and throw it in their carts, it doesn’t go back up for sale. At least not anytime soon, which is good news for the prospects of the next bear market. But that’s another story.

Between the top 4 Bitcoin-buying companies we know of at the moment, Grayscale, PayPal, MicroStrategy and Square, those companies alone are buying up over 210% of the freshly mined Bitcoin supply each day. And now we’re even hearing rumours that the mayor of Miami is looking at putting in 1% of Miami’s money into Bitcoin.

Pretty crazy how big that could snowball if other cities follow suit. Now, according to Charles Edwards on Twitter, we are entering a supply crisis for BTC. Think about that. An absolute crisis! Where companies are not even able to buy Bitcoin because there’s nothing left! As of right now, only about 4% of the Bitcoin supply is owned by corporations.

Expect that number to grow tremendously and exponentially over 2021. I can see that number easily climbing to between 10% and 20%, if not, much more. If that 10% to 20% line is breached, there simply won’t be enough Bitcoin to go around. You’ve got to get this through your head.

I can’t stress to you enough how important the rarity and scarcity of this asset is. About 18.5 million Bitcoin in the circulating supply, about 18.5 million millionaires in the US alone. But here’s the dirty little secret people don’t know.

If Satoshi’s original 1 million BTC mined is actually untouchable, like most of us believe, is removed from the supply, then anywhere between 1.7 million and 3 million more coins are considered to be zombie coins– lost forever, these are BTC that have been lost or blacklisted due to hacks– this means potentially the real circulating supply could be more like sub-15 million.

When these large institutions and corporations start realizing that, the frenzy is going to be unreal as the prices shoot through the roof. Right now, the company or fund is new to Bitcoin and wants to buy 1000 BTC, even now, it’s going to be way more difficult than they ever previously considered.

They can’t just create a Coinbase account and buy that much. Much of these deals are done off the books on the OTC market, which stands for over the counter. Which, by the way, I’ve got a great connection on the OTC market.

I’ve helped many people I know secure six-figure deals through the OTC market. If you’re interested in the OTC market to buy or sell large amounts of crypto, you can use Caleb & Brown. You can get to them by visiting cb.bitboy.live.

I know and trust these people. So listen. Coke, Delta, NFL, if you need to get some BTC OTC, I got the hookup. But I can tell you with the supply drying up extremely quickly, it’s time to look at phase 2 of this institutional FOMO— the Ethereum phase.

The reason why only half of all the top Forbes 500 companies will own Bitcoin? Because the other half is just going to be too late to the party. And they’re going to be forced to look elsewhere. They will be moving money ASAP into Ethereum when that happens.

I can’t stress enough how important it is that the US Securities and Exchange Commission decided to declare Ethereum, not security. This means that companies are going to feel just as safe dropping money into ETH as they do pouring it into Bitcoin. But there’s another dynamic here at play. ETH 2.0 The Ethereum 2.0 upgrade means that a big chunk of circulating ETH will get removed from the circulating supply as people lock up nodes on the network with a minimum of 32 Ethereum.

So aside from institutions buying Ethereum, there will be a tightening from the long time Ethereum holders. The good news for Ethereum institutional investors will be that there’s much more Ethereum in the supply than Bitcoin has, but it’s cheaper, so you can buy more! But the supply dynamics of Ethereum versus Bitcoin mean that it would be almost impossible for the cost of one Ethereum to ever equal the cost of one Bitcoin.

But that doesn’t mean it couldn’t get to, say, 20% of Bitcoin’s price per coin. In a true supply crisis for Bitcoin that spills over to Ethereum, the cost of each coin could be far beyond what most people consider to be realistic, or at least considered to be realistic even earlier this year.

You guys have to understand how crazy it is that I, who, for years, people have considered being the mooniest of all Moonboys and now getting out predicted by the likes of Citi, JP Morgan, the Winklevoss twins and more on not only the price of Bitcoin but also the price of Ethereum.

That’s how I grow. I will put some ridiculous things in the titles like “$500,000 Bitcoin” or “$50K Ethereum”, but now we have respected investors, banks, hedge fund managers and more giving higher predictions than my craziest high-side prophecies. But only a true supply crisis will make this happen.

And it’s not going to be driven by everyone in your family heading over to Coinbase and buying 0.05 BTC or 0.25 ETH. It’s the big boys looking to secure the bag. Once Bitcoin is out of reach, Ethereum becomes the next low-hanging fruit for people to FOMO into. It works the same way for institutions that it does for regular people.

So, what will the end result of all this be other than simply getting our bags pumped? I can see two distinct outcomes if the Ethereum FOMO from institutions becomes reality, which I think is very likely. First, we could see the same thing happen to Ethereum that we saw happen to Bitcoin.

It will change its purpose. Bitcoin started out as electronic currency, peer to peer, simple, digital money, but not due to any fault of its own or the plan of Satoshi, Bitcoin eventually became digital gold, a store value.

While the Ethereum network itself definitely serves a larger purpose, if a huge chunk of Ethereum is owned by institutional HODLers with steel hands, then we could actually see Ethereum becoming a store of value in its own right.

Second, eventually Ethereum circulating supply will run out, similarly to what we are seeing happen with Bitcoin. ETH 2.0 will certainly assist this. This means we need to start looking at what the next institutional coin could be.

It will be unlikely to be a smart contract platform in my opinion because Ethereum is one. Doubtful to be an exchange token or privacy coin. Could this be the destiny of Bitcoin cousin, Litecoin, or the Bitcoin fork, Bitcoin Cash? Is it a coin not even in existence yet? Too early to tell right now, but if you can pinpoint whatever the third institutional coin will be, that could pay off huge down the road.

Actually, drop me a comment down below and let me know what coin you believe would be next up after Ethereum? Also, drop me some BTC and Ethereum predictions for this bull run. That’s all I got.

Read More: Bitcoin, Litecoin Halving Explained

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