Another FREE Kale Letter today! Eventually I swear I’m going to cut this off and only send 1 a week to non-paying subscribers, so make sure you subscribe so you don’t get cut off!
For those of you that don’t know me, I’m probably the most BLUNT human on the planet.
If I was a tool, I’d be a sledgehammer. I don’t like to mess around with all the “political correctness” and all that crap.
So, you can probably read much more DETAILED and NUANCED and TECHNOLOGICAL arguments for Bitcoin in other places, just follow who I follow on TWITTER -> https://twitter.com/kale_abe
However, this argument will be DUMB SIMPLE. And articulate clearly the reasons I PERSONALLY put my money where my mouth is, and invest.
Reason #1: SUPPLY
There are only 21 million bitcoin.
And there can only ever be 21 million bitcoin.
And a bunch of these have been LOST FOREVER, so there’s actually much less.
Contrast this with basically anything else on the planet.
The US Dollar (the government prints more out of thin air all the time)
Oil (this year when people stopped driving, the oil companies were trying to PAY PEOPLE to TAKE the oil because they had so much. They can produce as much as they want based on the price)
Silver (silver production goes UP when the price goes up and DOWN when the price goes down)
It goes on and on.
Things that are SCARCE have value.
Think “Picasso” “Mona Lisa” “Malibu Real Estate” “Super Rare Baseball Cards” “Buggatti Veyron” and you will get the idea.
Bitcoin is the scarcest asset ever created because it is programmed into the CODE to be SCARCE.
But none of that matters if there isn’t…….
Reason #2: DEMAND
The Kale Letter is scarce. I’m the only one who wrights it. There’s literally only one. So if scarce things are valuable, it should be worth BILLIONS right?
WRONG.
It’s only valuable if people WANT IT.
And oh my goodness do people want Bitcoin….
I could write about the whole cycle of people that have bought bitcoin over the years but you don’t care.
Let’s just say this.
Bitcoin has gone from
Super Nerds -> Nerds -> Early Adopters -> Mass adoption -> Unstoppable force adopted by the biggest companies in the World.
In 9 years….
Literally YESTERDAY.
Yes, yesterday.
The CEO of Square ($80 Billion dollar company) AND Twitter (same guy) just announced that Square is investing its money in Bitcoin.
A few weeks ago, another publicly traded company, Micro-strategy, invested $425 MILLION dollars into Bitcoin.
Here’s the crazy thing guys.
THIS IS JUST THE BEGINNING.
Every company will eventually do this for 3 reasons.
1) There is nowhere else to invest cash. (Bonds Yield LESS than ZERO right now)
2) Game theory. (Quick explanation, once a couple companies do it, the others are MASSIVELY incentivized to follow in order to stay competitive)
3) There is almost unlimited cash sitting around ($4 TRILLION in US COMPANIES ALONE). The CEO’s literally have nowhere to put the cash. So might as well put it in the best performing asset to ever exist.
Reason #3: DIGITAL GOLD
Bitcoin is better at being Gold than Gold is.
Bitcoin is more scarce.
It’s MUCH MUCH MUCH harder to steal and hack. (it’s the most secure computer network in the world)
It’s MUCH easier to transport (instantly across borders).
PLUS you can verify that it’s real and that people have it INSTANTLY (try doing that with Gold).
WE ALL KNOW THE WORLD ECONOMY IS A MESS RIGHT NOW.
I mean look around.
The stock market is UP but every business we can see with our eyes (other than online ones) are STRUGGLING with continued lockdowns.
Something is wrong.
In crazy times, EVERYONE HAS ALWAYS run to GOLD.
It’s a HEDGE against the craziness and GREED that ALWAYS plagues society.
But now, this THING (Bitcoin) has come along that is better at being gold, than GOLD is.
Gold has a 10 Trillion Dollar Market Cap right now.
Bitcoin is only 200 Billion.
What happens when Bitcoin catches up?
You can do the math. (Hint: the price goes up an insane amount).
Those are the big 3 above, I’ll go quicker for the rest because I know you’re getting bored.
Reason #4: More secure than a bank vault under the ocean.
You might just have to take my word for it on this one, because it gets kind of complicated. But it’s safe to say that Bitcoin is secured by the most powerful computer network on the planet.
Reason #4: Decentralized
No one owns bitcoin. It can run on any computer worldwide. Thus, no one can shut it down, or otherwise control it. Seriously, something like this has never existed before.
Reason #5: NETWORK EFFECTS
Michael Saylor (that badass dude who invested 450M of his company’s money in Bitcoin) said this that has stuck with me.
Not an exact quote but -> “Any time a network effect biz (think facebook, google, amazon, etc) has reached a market cap of 200B (like bitcoin has) it has become LITERALLY unstoppable.”
THIS IS SO TRUE.
Imagine just for a second, how hard it would be to create a better facebook and beat them at their own game…
It’s impossible.
Why?
BECAUSE THEY HAVE 4 BILLION USERS.
Their product is YOU.
and getting 4 BILLION people to change their habits is basically impossible.
What Michael and I are saying is that once you have a network effect that is strong enough, like Bitcoin does, then it’s GAME OVER.
Good luck catching up.
Reason #6: Stock to Flow
This is WAY too nerdy for an article like this but just google “Plan B Bitcoin” if you want to go down the rabbit hole. Basically there is a statistical (and HIGHLY vetted) argument that Bitcoin will 10x (at least) in price over the next 12 months.
Reason #7: The objections suck
“The government will shut it down”
They can’t. They literally can’t. Have our governments ever all worked together before? No. They would ALL have to ban it simultaneously or else it will live on and grow stronger and incentive the non banned countries to buy more…
What happened when they tried to ban alcohol? (the price went up & so did demand)
What happened when they tried to ban gold? (the price went up and so did demand)
“You can just make your own coin”
Please see reason #5. I can make my own facebook as well. Doesn’t mean I’ll be worth Billions.
“Ethereum is better”
The market has spoken my friend, no it’s not. Plus, it isn’t scarce and has a weird founder who kind of looks like Voldemort. I’ll pass.
“It’s based on thin air, it has no intrinsic value”
Neither does the dollar bill in your pocket. What makes something valuable is if people BELIEVE it’s valuable and has good “money characteristics”. Bitcoin has the best money characteristics of all time and people already believe its valuable and are investing like crazy.
“It’s used for drug deals”
Actually, one of my best friends is in the DEA. You know what’s used for drug deals? $100 Bills. Every type of money will be used for bad things, you can’t stop that and it won’t affect it going up. That stigma is dead now that companies like square have invested.
Comment another objection below I’d love to destroy it.
Reason #8: Money Printer Go BRR
I’ve already talked about this one extensively so no need to harp. But governments are going to devalue your currency. They have no choice. I could talk about this for hours but I’d encourage you to read “The Price of Tomorrow” by Jeff Booth, if you don’t believe me.
Guess what they can’t devalue by printing more of it? Bitcoin.
Just think of every time you hear the word “stimulus” as a que to buy more bitcoin. That’s what I do.
Reason #9: The Future is Here, and it’s Online.
Anyone who tells you that future currencies won’t be digital is kind of like the people in the 90’s who said people would never shop online.
They are just simply wrong.
Most money is already 1s and 0s in your bank account.
Just data.
And that’s obviously where it’s all headed.
Bitcoin is the scarcest and the most secure version of that new “future money” and it has a 9 year head start. Not difficult to see who will win here.
Reason #10: There is risk, but it’s a once in a lifetime opportunity.
I texted this to my dad last night.
I really tried to think though the probabilities, or at least how I see it, for investing in the 2020s…
So there you have it.
Nothing is guaranteed. But that’s just a FEW of the reasons I invest in Bitcoin (literally just off the top of my head).
Any of those “reasons” I put above, could be a 200 page BOOK with how IN DEPTH you can go to verify what I am saying.
OHMIGOSH SEE I FORGOT THE MOST IMPORTANT ONE
REASON #10: The HALVINGS
Every 4 years. The new supply of Bitcoin gets CUT IN HALF.
Before May of this year, there were 1800 Bitcoin created every day.
“But Kale I thought you said the supply was fixed?”
It is, at 21 million.
New Bitcoin will be mined (slower and slower) until we reach that 21 Million cap.
So in May, we had a halving, and now there are only 900 new coins created per day…
In May of 2024, there will only be 450…
May 2028, 225…
And so on.
Pretty soon there will literally be ZERO new bitcoin.
So I guess I’ll just leave you with the one question that made ME research bitcoin and eventually invest…
If I told you, right now, that FOR SURE, half the gold mines were going to shut down on a set date. Would you buy Gold?
(of course you would)
Have a great day. Share this if it helped you. Subscribe so you don’t miss my next letters.
Go read the other letters so you can see the quality of this letter.
Love ya.
Kale
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