I’m going to list for you the reasons why I think Michael Saylor and Elon Musk knew that bitcoin was fundamentally destined to reaching new all time highs
FIRST and foremost that start with Elon business the biggest part of his business is the Tesla cars and the lesser known portion of his business being the solar company, throughout his business of manufacturing these goods he came across a particular element of his manufacturing that becoming scare and going up in price was the silicon being used in the chips necessary to manufacturing his products
realising the scarcity of this element and its need in production of chips he foresaw A fundamental variable of chip manufacturing that was going to affect the cryptomarket so greatly and that was the production of Graphics cards and mining equipment
These types of miners and graphics cards are necessary for GPU mining rigs for a ethereum and mining for many other crypto currency
due to the shortage of chip produced which was exacerbated by the pandemic and the fundamental changes that were going on with the overall economy he knew chip manufacturers wouldn’t be able to provide customers with the product they desired and it would become more more difficult to mine over time
Due to the scarcity of graphics cards, miners are having trouble finding hardware powerful enough to mine cryptocurrency at an energy efficient rate.
many miners have been forced to buy graphics cards and other mining equipment on the from resellers at extreme markup prices sometimes the price of top of the line nvidia graphics cards is going for double the price of MSRP
Due to the fundamental change in scarcity of these cards the amount of coins mined by these mining pools has therefore decrease significantly
Elon Musk knew about this shortage and that’s why he bought one billion dollars worth of coins back in March of 2021 total in an average of 18,000 per bitcoin
The intelligence software provider recently announced that it now holds 70.5 million Bitcoin that it bought at an average price of $16,000 for a total of $1.125 billion.
When will the graphics card chip shortage end
As of right now there is no end in sight for the graphics card ship shortage
Many researchers think the price of graphics cards will continue to increase
Because of the lack of chips available in the market and the ever growing cost of energy
The price it cost to mine a single coin has gone up significantly due to this many miners have chosen to hold their stash which goes against what mining pools used to do, basically sell their coins for whatever price they could get
Quant pool
The amount of coins going to exchange is to be sold for mining pools has come to a standstill in fact there been numerous withdraws from exchanges indicating bullish sentiment as large institutions have decided to purchase the crypto currency and send it to custodial holding or a cold storage wallet
these institutions typical hold time are years, if not decades before selling.
Super cycle
Many people like willy woo are Referring to this bull run as a supercycle
the typical bull runs have lasted approximately 18 months from the having
In the past, bitcoin has typically sold off after 18-24 months from the halving…
some social media influences including willy woo and tone vays are expecting that statistic to end this year because of the fundamental changes going on with the increase of the price per coin mined after having after the global chip shortage, and the increased institutional demand
past performance does not dictate future results
So many people who sold early expecting the typical 33% + dip/correction may be left out
The variable changes we are seeing in the fundamental supply of bitcoins are completely unprecedented and we have little knowledge base of how much it will affect the price. But many people are betting that it will go up exponentially, and may continue to go up.
Feel free to Leave a comment about your opinion on bitcoin ethereum and other cryptocurrency
And where you think the price is going
