What does it mean to be ‘perfect’?
Sure, we can get a perfect score on a 20-question test.
You might have had perfect attendance during a year at school.
In doing more than ‘showing up’ for school…perfection in a class for a semester or even a full year is possible. But perfection in all classes for a full year is much more difficult.
Perfection for any length of time is extremely difficult.
That is why the last team in college basketball to go undefeated during the regular season AND during the post-season tournament was in 1976! It is a rare event.
For the last 46 years, no team in college basketball was perfect. Players get injured, you have a bad game, and the unforeseen circumstances jump up to cause the team to lose the game.
Within finance, markets collapse, and networks become congested making it difficult to transact. Or, systems go down temporarily for maintenance or because a bug was exposed.
For the past 9 years, the Bitcoin network has experienced 100% uptime. It was on this day, nine years ago on March 11, 2013, the Bitcoin network was having a problem and one couldn’t reliably transact on the network.
Think about that for a moment.
9 years in a row and counting
3,287 continuous days
78,888 continuous hours
4,733,280 continuous minutes
…without interruption.
THIS IS A HUGE FEAT!
How often does a software service you are using notify you that they are performing scheduled maintenance and the platform will be inaccessible for a couple of hours?
Every minute of every day for 9 years the Bitcoin network was reliably recording and transmitting transactions.
Even during the holidays, Bitcoin was reliable.
Even during weekends, Bitcoin was reliable.
Even during market collapses as we witnessed in March 2020…Bitcoin transactions were reliably being sent.
Bitcoin is not a fly-by-night network that is funny money that is worthless. There is value in a network that can have 100% uptime for nearly 5 million continuous minutes.
How much can the Bitcoin network be worth?
As you can imagine, there are estimates all over the board. I tend to think about Bitcoin in relation to other established markets. For example, gold has a total market valuation of $10-12 trillion.
Well, gold has made big news this week as it approached pricing at all-time highs.
This is exciting news for gold bugs as they finally get their time in the spotlight.
What about bitcoin? It seems to be struggling as of late. Right now, bitcoin is valued at $750 million which is about 6-8% of the value of gold.
Do you think bitcoin will never be more than a fraction of gold’s value…or will bitcoin be a multiple of gold’s value?
Even though gold reached it’s all-time high AND bitcoin has been struggling, an investment in Bitcoin would have yielded three times more gains than an investment in gold.
Over the past two years, bitcoin has grown more in value than gold.
Flipping the chart, even the recent strength is not enough to push the gold to bitcoin ratio above the January 24, 2022 high. And that high is still below the price at July 2021. Gold has increased in value some, but nothing materially against bitcoin.
Bitcoin continues to be a superior investment to gold.
What is the price forecast for Bitcoin in 2022?
In August 2020, MicroStrategy’s CEO announced they were going to use bitcoin as a part of the corporate treasury plan. From that point forward, bitcoin has experienced serious growth in price. For the past 9 months, bitcoin is consolidating those price gains.
The pricing models we follow suggest bitcoin will resume its uptrend later on in 2022.
In fact, each quarter, we update our pricing forecasts for bitcoin and four other large markets including Ether. You can view our pricing forecasts for Q1 AND be set up to receive the Q2 reports today.
For less than a cup of coffee per month, you’ll have the insights for seeing the quarterly trends on important digital markets for bitcoin and Ether.
