PREP 2019
So that’s 6 million coins already off the market. That means about 35% of the world’s current supply is gone... And bitcoin hasn’t even gone mainstream yet. Meanwhile, another 2.5 million bitcoins are in the hands of the most fanatic crypto backers. They call themselves the “hold on for dear life” crowd and have no intention of ever selling. Put it all together, and 8.5 million bitcoins are missing. That means nearly 50% of the roughly 17.5 million existing bitcoins aren’t available for trading. They aren’t available to Fidelity or Goldman or ICE. They aren’t available to the pension funds and
A WORLD BEYOND BITCOIN I’m excited to see bitcoin reprice in 2019. But there’s something I’m even more excited about... Bitcoin is fundamentally challenging the way banks process financial transactions. When the network launched a decade ago, it was the first time in history we could use a peer- to-peer network to send money around the world. There are no middle men... no escrow accounts... no payment processors... no charge-backs... no banks signing off on your transactions. It’s the biggest single change to global finance since Richard Nixon took us off the gold standard in August 1971. But what bitcoin really created was a way to send value over the internet. From that perspective, crypto’s potential grows exponentially. Suddenly, we can apply that same technology to the stock market. Instead of swapping shares, we can turn them into tokens. Then, they can trade on global exchanges 24/7. We can give holders online voting rights. We can prove ownership. We can automatically pay dividends. And we can tokenize everything. Real estate, gold, even loyalty points at the gas station. Right now, there are 2,000 cryptos in the world. But we need to prepare for a world with millions of cryptos. And that’s not all. What if we added a programming language on top of all these tokens? We could create
Bitcoin is fundamentally challenging the way banks process financial transactions.
endowments that want to get their hands on them. And they aren’t available to you and me. So, what happens when everyone goes to buy bitcoin at once? Market forces kick in. It’s supply and demand. And there simply won’t be enough supply to meet demand. That’s how we’ll see bitcoin values soar five or 10 times, practically overnight.
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January 2019
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