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"There is a need for an electronic payment system based on cryptographic proof instead of trust." This statement from the original Bitcoin Whitepaper represents the very ethos of blockchains, that are weeping across financial markets as I write. With a total available supply of 19,063,518 Bitcoins, the aggregate value currently stands at a mere $324.4 billion, equivalent to the value of Home Depot ($325.86 billion).

Interestingly, Home Depot, an established and profitable company boasting revenues of $150 billion and earnings of $16.4 billion in 2021, employs approximately 500,000 individuals. Yet, despite their assets of $71.8 billion, they have liabilities amounting to around $73.6 billion, resulting in negative net assets of 1.8 billion. This begs the question: How does Bitcoin, an electronic payment system based on cryptographic proof instead of trust, maintain the same value as a company with negative assets?

Navigating the world of financial markets calls for emotional detachment and mental resilience. It can be likened to a dance, where one learns to understand and move with the rhythm of the market. I'm currently reading George Soros' 'The Alchemy of Finance', which delves into the psychology of markets, often influenced by emotional attachments and the pressure of frequently checking price fluctuations.

With cryptocurrencies like Bitcoin, it becomes apparent that momentum and expectation heavily impact price movements, which in turn influence the underlying value or fundamentals. Given the volatility and emotional involvement in the Bitcoin space, it's important to establish guiding principles and to remain steady despite market fluctuations. This approach also shields from unhelpful noise, such as comments on social media that may spur FOMO (Fear Of Missing Out) or misconceptions.

Despite Bitcoin's volatile nature, it's important to recognize its potential. Few people may be using Bitcoin for everyday transactions, and not many countries have adopted it as their primary currency, yet the experiment by Lugano, a Swiss city, to accept Bitcoin for transactions is a promising step forward. This move is creating interest, indicating the future potential of Bitcoin as a medium of exchange.

Speculating with Bitcoin is natural in its current phase, but the long-term aim should be for it to become a medium of economic transactions. The design of Bitcoin's technology is remarkable. The process of halving, where the total number of Bitcoins that miners can potentially win is reduced by 50% every four years, makes it a valuable commodity. This process increases the difficulty of acquiring the asset with a given set of mining capability.

Historically, Bitcoin's price has shown significant increases post-halving:

1. After the first halving, the price rose by more than 8,069% after 365 days.
2. The second halving saw a rise of 284% after 365 days.
3. The third halving led to an increase of more than 559% after 365 days.

With the fourth halving expected in May 2024, Bitcoin enthusiasts are anticipating another significant price surge.

Despite these promising statistics, it's crucial to remain grounded. Market panics may lead to price drops, and it is in these moments that one should be ready to exploit the market's irrationality. My strategy is to 'stack sats' in the lower 20k price range and accumulate Bitcoin at the end of each quarter this year.

My personal price prediction for one Bitcoin is around 550k by 2027. By then, I hope to have acquired more than one Bitcoin. The future of Bitcoin seems promising, and it's evident that this revolutionary technology is here to stay. It may take time for Bitcoin to be widely accepted, but the strides it's making are significant.

As we venture further into this digital age, Bitcoin and other cryptocurrencies are set to challenge traditional financial systems. It's not just about riding the wave, but understanding its potential to transform our economic landscape. Whether the price goes up or down, each movement brings with it opportunities, and as we navigate these turbulent waters, it is crucial to keep a firm hand on the tiller and an unwavering eye on the horizon.

Link 1: Cumulative Bitcoin addresses

Link 2: Bitcoin's Market Cap

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