Bitcoin's Been on a Tear: What's the Deal and Where's it Headed?

Buckle up...

because Bitcoin's been on a wild ride the last six months. If you are an investor in Bitcoin, your Asset Garden is growing some beautiful blossoms currently. We're talking blasting past its old records and grabbing headlines everywhere. So, what's the secret sauce behind this surge, and more importantly, where's this crazy train going next, especially with the big halving event coming up?

Increased institutional adoption played a major role. Major investment firms like BlackRock dipped their toes into the crypto pool, recognizing Bitcoin's potential as a valuable asset class. This legitimized Bitcoin in the eyes of traditional investors, leading to a surge in demand.

Six Months of Bitcoin Boom

Remember back in the Fall of 2023? Bitcoin was chilling around $27,000, doing alright but not exactly setting the world on fire. What’s next? Well, then, things got interesting. Big investment firms like BlackRock started taking Bitcoin seriously, seeing it as a valuable asset. Imagine your dad finally admitting that video games aren't a waste of time – that's kind of the vibe. This validation from the grown-ups of finance brought in a whole new wave of people wanting a piece of the Bitcoin pie.

On top of that, some countries are starting to embrace crypto with open arms. El Salvador even made Bitcoin legal tender, which basically means you can buy your morning pupusas (masa cakes) with it. This kind of forward-thinking move got everyone hyped about the future of crypto.

Plus, with inflation making traditional money feel a bit flimsy, Bitcoin's limited supply (there will only ever be 21 million!) started looking mighty attractive. This is the 100% opposite of our U.S. dollars which our Federal Reserve believes we can print on demand and have no negative impact on those of us down the food chain. Just a fun fact to know and tell:

What you paid $100 for in 2020 will today cost you just about $120. Since 2000 that $100 item now costs $180! Not the kind of "growth" we desire.

With our profligate government spending of nearly 1 TRILLION dollars every 100 days, the true inflation rate is certainly much worse than told by the official numbers.

Just one more reason to consider alternative investments such as Bitcoin. Maybe you're old enough to remember the days when our Congressional representatives were fretting about annual deficit spending of a mere $350 billion. Or maybe you remember when during the Bush administration they were accusing him of increasing the national debt from $5 Trillion to $10 Trillion at the end of his 8 years. And in just 4 years, our current administration has gone from $27 Trillion to over $33 Trillion. Nearly, literally, burning our financial foundation down.

I don't know about you but I think this is Unsustainable. It's also insane. So what do you and I do?

The Halving Hype: History in the Making (Maybe)?

Here's the next chapter in this Bitcoin saga: the halving. This fancy term basically means that in April 2024, the amount of new Bitcoin created gets cut in half. In the past, these halvings have been followed by epic price increases. We're talking over 1,500% jumps after the 2012 halving! So, the optimists are out there saying, "Buckle up, because Bitcoin is about to take off again!"

But hold on a sec, Team. Just because something happened in the past doesn't guarantee it'll happen again. The world was a different place in 2012. There's always the chance governments could put a damper on the crypto party with new regulations. And let's not forget, the whole economy is a bit wonky right now. If things take a nosedive, people might ditch risky investments like Bitcoin to play it safe.

Given the current heights, what might a ‘safe play’ look like? For lots of folks it’s a risky play to go into Bitcoin directly but as I’ve mentioned in other places, I love the cryptocurrency trading platform, ‘The Crypto Code’. This is a means of investing in the crypto arena with a better means of mitigating risk.  

You can view the details here: The Crypto Code

The Bottom Line: Buckle Up, But Be Smart

The truth is, nobody knows for sure what will happen to Bitcoin in the next year. The halving could send it soaring, but it's not a magic trick. There's still a chance things could get bumpy. The key is to do your research, don't jump in based on hype (fear of missing out –FOMO- is a real thing!), and maybe hold off on buying that Lambo with Bitcoin... just yet. This whole crypto space is young and wild, so the next year is bound to be an exciting ride for Bitcoin.

Just remember to keep your cool and invest responsibly! Keep that Garden growing!