What will you sell your bitcoin (BTC) into when the bull market tops?

When the bitcoin bull market peaks, what alternative asset might experience significant growth next? Among the numerous options, which one could potentially surpass bitcoin‘s performance upon emerging from its prolonged slump?

What could do better than bitcoin?

Picture this situation: Bitcoin reaches an all-time high of approximately $150,000 within the next 12 to 18 months. You’ve reaped significant profits, a considerable portion coming from altcoins. Yet, you hesitate before selling your bitcoins. After all, what could possibly surpass Bitcoin’s potential growth, despite the possibility of another prolonged bear market?

Cash means inflation and debasement

Retail investors, thrilled by their bitcoin profits, are likely to cash out and deposit the funds in the bank. They may sell close to the peak, though most might miss the optimal timing. Either way, the mission is accomplished.

Or is it?

Before deciding to sell and keep your money in cash, there are several important factors to consider. First, you should be aware that the purchasing power of your cash may decrease by as much as 7-10% due to inflation over the next year. This assumes that inflation remains stable; however, it has already started to rise again, and there’s no telling how high it could go in a year’s time.

Central banks, including the Federal Reserve, have the ability to produce large quantities of money through printing. US governments have held this faith that they can acquire additional funds simply by generating more money.

In simpler terms, which group bears the cost? Primarily, it’s the poor and middle class since most people don’t possess significant assets. Wealthy individuals, on the other hand, benefit as their assets gain value with each new currency creation. Unfortunately, those without assets experience a continual loss of purchasing power and wealth due to currency debasement.

Holding bonds means holding government debt

Cash as a store of value is worryingly unstable. Then again, what about government bonds? By investing in bonds, you can generate returns through yields. However, owning bonds means you are also holding onto government debt. Do we truly have faith in our government’s responsibility to maintain the value of these bonds?

Stock market driven by only seven companies

seven companies dominate the US stock market. Is it healthy that such a large portion is controlled by just these seven massive corporations? They can continually purchase their own shares, leading to rising prices. But for how long can this trend sustain itself?

Gold has its own inflation

Gold and silver are experiencing extraordinary price hikes with no precedent. Investing in them means aligning yourself with a rich historical background. However, keep in mind that gold’s value remains tied to its purchase price. Its monetary function is the reason for its worth. Gold doesn’t naturally gain value, though it does have an annual inflation rate of about 1-2% due to new gold being mined and added to circulation.

Real estate has its headaches

Considering real estate as an alternative? Isn’t it true that the value of buildings and land increases over time? A tangible asset like a house can be a sound investment indeed. And if you have multiple properties, you can generate consistent passive income by renting them out. However, owning a house isn’t without its challenges. You’ll encounter expenses such as property taxes, income tax, maintenance costs, mortgage interest, and insurance premiums. Additionally, dealing with tenants can be a headache at times. The pros and cons are numerous.

Bitcoin is eating every other asset

Regarding all the asset choices mentioned, it’s crucial to consider one factor: their performance against bitcoin. Conducting such a comparison will reveal that each of these assets has dropped by over 99% in value when compared to bitcoin. With tools like TradingView, making such comparisons is simple and effective. Just set up charts to visualize the data, and you’ll be amazed by the striking differences.

How do you plan to handle your bitcoin if you’re fortunate enough to identify the peak of this bull market? It’s true that bitcoin’s value is likely to decrease substantially once it reaches that peak. However, will we continue experiencing severe bear markets as in the past? The institutional investment is surging now, with each institution allocating between 1-5% of their portfolios to bitcoin. Could bitcoin avoid corrections greater than 50% with such massive inflows?

2024-04-12 14:08