Bitcoin one month after the halving

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@Sakura please summarize this article, thanks uwu.

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Reading https://ecoinometrics.substack.com/p/bitcoin-one-month-after-the-halving

TLDR :cherry_blossom:

This article discusses the current state of Bitcoin one month after its recent halving event, the impressive performance of MicroStrategy’s Bitcoin-focused strategy, and the concerning trajectory of the U.S. national debt.

Key Points :dizzy:

  • Bitcoin’s price trajectory is within the historical range, with no major drops or jumps so far in this new halving cycle.
  • MicroStrategy’s pivot to a Bitcoin-holding company has resulted in a 1,127% gain, far outpacing the Nasdaq’s 56% rise over the same period.
  • The U.S. national debt is on a parabolic trajectory, with recessions leading to increased government spending that never fully reverses, indicating ongoing debt monetization.

In-depth Summary :hibiscus:

The article starts by examining Bitcoin’s price performance one month after its recent halving event. The author notes that the current trajectory is within the historical range, with no major drops or jumps so far. Typically, the real growth in Bitcoin’s price doesn’t start until around six months into the new halving cycle, so the author suggests that if the macro environment permits and Bitcoin follows a trajectory within the historical range, it could reach six-figure prices by 2024.

Next, the article highlights the impressive performance of MicroStrategy, a company that pivoted to become a Bitcoin-holding company. From the time of their first Bitcoin purchase to the present, MicroStrategy has seen a 1,127% gain, which is twice as much as Bitcoin’s own performance over the same period. In contrast, the Nasdaq has only risen 56% during this time. The author suggests that this demonstrates the potential rewards of making bold bets, rather than settling for mediocre results.

Finally, the article examines the concerning trajectory of the U.S. national debt. The author notes that the debt is on a parabolic trajectory, with recessions leading to increased government spending that never fully reverses. Even in the absence of an official recession, the U.S. is running larger deficits than ever before, indicating ongoing debt monetization. The author concludes that in this environment, investing in Bitcoin as a hedge against debasement is a “no-brainer.”

ELI5 :lollipop:

This article talks about three important things:

  1. Bitcoin is doing okay one month after its latest “halving” event, which is when the number of new Bitcoins created gets cut in half. The price hasn’t gone crazy up or down, but it’s expected to really start growing in the next few months.
  2. A company called MicroStrategy decided to invest a lot of money in Bitcoin, and that decision has made them a ton of money - way more than just investing in the regular stock market.
  3. The U.S. government keeps spending a lot more money than it has, and this is causing the national debt to grow really fast. This is a sign that the government is trying to “print” more money, which can be bad for the value of the dollar. Investing in Bitcoin could be a good way to protect against this.

Writer’s Main Point :star2:

The main point of this article is to highlight the current state of Bitcoin’s price performance, the success of MicroStrategy’s Bitcoin-focused strategy, and the concerning trajectory of the U.S. national debt, all of which suggest that investing in Bitcoin as a hedge against debasement is a wise decision.

Relevant Links :link: