As part of our on-going Tweetstorm Series, we showcase excellent Twitter threads on the most interesting topics in the industry and publish them here on Decentralize.Today.
Today we feature Phil Bonello's excellent twitter thread about the many angles of Bitcoin adoption. Phil is an independent analyst and and advisor at Ikigai Asset Management, with a background in Industrial and Operations Engineering from the University of Michigan. You can follow him on Twitter @PhilJBonello for more of his excellent bullish Bitcoin analyses.
I just published The Many Angles of Bitcoin Adoption. Bitcoin is taking over global mindshare and that process is self-fulfilling, reflexive. It's very bullish.
Data supports a conclusion that anyone can understand. "It might make sense just to get some in case it catches on. If enough people think the same way, that becomes a self fulfilling prophecy" - Satoshi.
Bitcoin is becoming an object of desire from many angles.
Let's consider a rarely discussed topic of nation state adoption. It's a prisoner's dilemma. They have to play the game whether they want to or not. The resulting FOMO will be amazing to watch.
Bitcoin is money, akin to digital gold. The community is well acquainted with the narrative. Nonetheless, the upside is huge. It might make sense to buy a little in case. (not investment advice)
Bitcoin's properties are well known but worth calling out again for the newcomers. It's scarce. And this year its issuance rate will, for the first time, be less than gold.
Bitcoin is increasingly accepted. More people than ever are accepting and holding a significant amount of BTC. Merchant solutions are also quickly coming to market.
Speaking of holding, over 40% of BTC has been dormant for over 2 years. We see similar accumulation patterns in past markets.
Bitcoin is portable. In 2019, Poland held a top secret mission to repatriate $5B in gold. With Bitcoin, that would take less than an hour and cost under $1. The network does over $5B daily! We need a portable store of value in a digital, global world.
Bitcoin is also an uncorrelated alternative investment for institutions. Global debt is forcing accommodative policies that weaken real yields and raise concerns about fiat. Bitcoin is the hedge.
Bitcoin has been almost completely uncorrelated in the last 5 years. Huge boon for portfolio construction.
Most convincing is the millennial interest in Bitcoin. The next decade should see almost $10 trillion of wealth transfer. In the next 30 years, almost $70 trillion of transfer!
And millennials are piling into Bitcoin, even at a substantial premium on GBTC. It's easy to imagine this trend accelerating.
At the center of the millennial movement are @sqcrypto and @jack. - 70% of users are millennial or younger - 2x increase in first time Bitcoin buyers in Q3 2019 - 2 million merchants use the point of sale product - 60 million Cash App downloads.
It looks to me like Square is building end-to-end financial products for consumers and merchants alike, and Bitcoin will be integrated into all of them when the time is right.
Bitcoin is a tool for survival, social good, and dissidence. Bitcoin is helping commerce flourish around the world. It's allowing those without the infrastructure, to store their wealth securely. These use cases show persistent growth.
Bitcoin is driving profitability of renewable energy. Bitcoin miners have become electricity buyers of last resort. When plants have excess electricity, they can divert it to Bitcoin mining and earn money. @LAYER1OFFICIAL and @CrusoeEnergy are leading the US charge.
Finally, Bitcoin is the best performing asset of the decade. The price action is inescapable to anyone paying attention to markets. Millions of percent appreciation. Reflexive.
About the Author
Phil is an independent analyst and also an advisor at Ikigai Asset Management, with a background in Industrial and Operations Engineering from the University of Michigan. You can follow him on Twitter @PhilJBonello for more of his excellent arguments for the ownership of Bitcoin. You can also find more of his content (including the original article of this tweetstorm) on his substack publication philjbonello.substack.com.