Here Come the Giants
If you listen closely, you can hear them coming. If you still your senses, you can feel it in the air and the ground skakes beneath their heavy feet. If you look at all the signs, you know it to be true. The Giants are coming into Bitcoin. The massive Bitcoin purchase by Michael Saylor and Microstrategy is just the first of many large entities that are coming into Bitcoin over the coming months and years. Our quiet little corner of finance is about to get a lot more crowded as more ultra high net worth entities begin to see the writing on the wall for the US Dollar and other fiat currencies. Trillions of dollars worth of new fiat currency and government debt has been added to already tenuous central bank balance sheets in the year 2020, and soon the consequences of such exuberance will be apparent to all.
National debts and unfunded liabilities were already going parabolic before this strange year began and none of the actions taken by governments around the world has done anything to alleviate them. At this point their first and only course of action in any crisis has been to print more money. Give the populace what they want, save the corporations. Austerity measures are not an option. As more and more people with a lot of skin in the fiat game realize that their assets are being inflated away, they will inevitably seek to protect their sand castles from the rising tide.
They will not come for the tech, nor to make a couple million in quick fiat profits by trading the market. They will come to preserve the assets they already hold, the wealth they have accumulated over decades of doing business. They will come to ensure their very survival, because to be left on a sinking ship will mean certain death. There are only a limited number of Bitcoin life boats, so the clock is always ticking.
They will look at many options: stocks, real estate, government and corporate bonds, precious metals and of course Bitcoin. One by one, these options will fall by the wayside in favor of Bitcoin. Stocks and real estate are already overvalued, bonds give no yield and are denominated in fiat, metals are cumbersome and easily seized. When the dust settles, Bitcoin will come out as the only viable option left to them. The only chance at an asymmetric return.
Bitcoin is a bearer asset outside the legacy system, it is not anyone else’s liability subject to counter party risk. If the bank across the street fails in a derivatives meltdown, Bitcoin won’t be obliterated in the carnage. It’s value proposition cannot be diluted by bureaucrats nor can it be stopped by meaningless regulations. Satoshi’s box has been opened and cannot be closed again, there is no going back to the days of trusting central bankers and fiat economists with their Keynesian models. We are in uncharted territory now.
As the consequences of 2020’s money printing spree begin to take affect and inflation begins to spread across the world in 2021, these giants will see their wealth begin to melt away. The slow march towards Bitcoin will then become a stampede, and an “acquire Bitcoin at all costs” mentality will become paramount as they each seek to get in before the next guy. They won’t have the luxury to make many small OTC buys over time, the way Microstrategy was able to do and enter the market without a ripple in the price. They will be forced to panic buy as the ground gives way beneath their feet and the fiat floor cracks and crumbles. FOMO will kick in as the price of Bitcoin in dollar terms begins going parabolic and previous high after previous high becomes a distant memory.
The Giants are coming into Bitcoin and there is nothing you can do to stop them. The only thing you can do is to get here first, Hodl your sats and make them pay dearly for anything they get. This is a monetary war and we are not going to give up our ground so easily. If you’ve been here for awhile, you saw what others did not, you were ahead of the game and spent years preparing yourself for what was to come. Do not give up your place on the lifeboat for a quick chance at fiat riches, we are playing the long game and the greatest transfer of wealth the world has ever seen is on the horizon.
Bitcoin will outlive the governments that try to ban it. Bitcoin will outlast the people who say not to own it. The point of critical mass has been reached, the point of no return has been crossed. The Giants are coming. You either get on this train, or get run over by it.