Welcome to BitBoy Crypto!
The people's channel
Home of the BitSquad
The largest and greatest crypto community in all of the Interwebs
No channel works harder to keep you in the know about crypto.
My name is Ben.
Usually, we've got a Sunday drive video for you this morning,
where we drive to church and tell you what's happening in crypto.
Today, we're traveling to a ball tournament.
We got the No. 1 seed today.
We got the ballplayer back there.
Studly McMuffin.
And we are going to be heading to a ball tournament today.
Hopefully, we win.
It's good stuff.
Do stuff outside of crypto.
Don't just spend all your time doing crypto.
Don't neglect your family, you know?
That's an important lesson.
But, guys, I want to talk today about Bitcoin and Ethereum because
we have something going on really for both of these cryptos
that is extremely massive right now.
And these are potentially the two catalysts that we're going to see for a level 2,
a layer 2, if you will, of this Bitcoin bull run that we've been seeing since last year.
And, you know, well, really, we've been seeing it since the end of 2020.
And, you know, what's really crazy is to think that we're coming up
in just over a month of the first Bitcoin top here,
the first Bitcoin top that occurred last year in April,
actually, less than a month,
it's almost been a full year since the May crash.
That is absolutely insane to me to think about that.
It's hard to imagine that it's been a year since that occurred.
Somebody's trying to get over on me here.
It's not going to work.
Good try.
So--
do they know this thing's got 100 horsepower?
I don't think she does.
But the point here is, guys, is we've got two catalysts.
And I want to go over what both of these are and why they're absolutely massive,
why we are probably going to see another leg up.
It's starting to feel that way.
Now, that doesn't mean that we're going straight there in the next couple months.
But it does look like now we are moving from a place
where it's going from realistic to see Bitcoin at all-time highs to probable.
We're not there quite yet, but it's starting to feel that way.
Once we get back over 50, then, hey, it is definitely in striking distance.
If you remember, back in November,
we watched the price of Bitcoin, you know, in October, November
go from, you know, the 40s all the way to almost $70,000.
It can happen like that.
So, what are these two catalysts?
And why are they so massive for Bitcoin and Ethereum?
Well, for Bitcoin,
we have the potential of an ETF--
sorry, I cannot get this thing right--
of an ETF approval.
Now, what does this mean?
Well, ETF is an electronic traded fund.
And what it is that it basically trades--
it's an institutional vehicle for trading crypto.
It's a way that institutions can get in, trade crypto, get exposure to the market
without having to go full in on crypto.
That's the best way to really explain it.
We have a futures ETF that was approved.
We have two I think actually.
I think it's the Bitwise and maybe the ProShares,
or maybe it's ProShares and Bitwise.
Whatever it is. I don't even know.
I don't trade these things.
But these were approved in the fall.
And what did that lead up to?
All-time highs for Bitcoin.
But even in the fall, we told you that it was unlikely that we were going to get a spot ETF approved.
Now, what's the difference between the futures and a spot?
A spot ETF,
the balance of these trades has to be settled in actual Bitcoin.
With futures, they can be settled in US dollars,
which kind of defeats the point of having an asset with a cap supply like Bitcoin.
So the long and the short of it is when we get this spot ETF approved,
we are going to be able to see the full power of Bitcoin in the institutional market.
And definitely we will see a bigger pump than we saw in the fall for the futures approval.
Now, here's the issue.
I don't really have any evidence to tell you that this is getting approved
in the next one to two months
other than one thing,
and that is that Raoul Pal, former Goldman Sachs trader
and, you know, crypto guru at this point,
he runs Real Vision Finance, an incredible channel on YouTube,
he is saying that he is hearing from the inside
that we are getting these approvals in April and May for a spot ETF.
This is the catalyst.
Now,
we did not see highs for Bitcoin like we thought we were going to see.
We thought we were seeing at least six figures, but we didn't get even close.
I mean, relatively close to $70,000.
So we haven't seen dramatic drops in the bear market,
which leads me to believe that we might be seeing Benjamin Cowen's lengthening cycles theory playing out.
And that's really bullish for this year.
We certainly didn't want that to play out last year because we wanted to go to 100 figure--
or six figures, $100K.
It did not get there.
This is kind of our last hurrah, our last hope to get there in the short term.
So it looks like if we were to get that approval,
that is the catalyst that can send Bitcoin to the moon.
So that's Bitcoin.
But where does Ethereum fall in this?
Well, what's coming for Ethereum is even more bullish than an ETF approval.
And this is called the merge.
This is the transition of Ethereum from a proof-of-work blockchain
done with mining to a proof-of-stake blockchain
where the transactions are pushed through and validated by nodes.
You can own 32 Ethereum.
You can stake on a node or on a smaller amount and stake on exchange,
and you can, you know, earn a return on that.
But this is going to do something incredible for the supply.
We also have the difficulty bomb. It should be going off this summer.
You can look into what that is.
It has to do with difficulty, you know, for bringing Ethereum into the supply.
But this is the big number you have to understand.
They're calling it a triple halving. Why?
Because it's like three Bitcoin halvings in one
when it comes to what this is going to do to the supply
and what this is going to do to the incoming supply to Ethereum.
You're not just halving it once.
You're halving it more than three times when you look at these numbers.
The merge, this is the key.
You don't have to understand the merge.
You don't have to even understand proof-of-work versus proof-of-stake.
I don't care about all that.
Like, that isn't going to make a gigantic difference in your investments.
What is is the inflation.
When it comes to Bitcoin,
it has a max supply of 21 million.
It has a circulating supply right now of 19 million.
Four and a half million of those Bitcoin are lost by the way,
or will never move for various numbers of reasons.
Mostly because they're lost.
So the thing here is,
Ethereum does not have a capped supply.
Ethereum,
we are seeing millions of Ethereum come into the supply every year,
which dilutes the value of the overall, you know, market cap of Ethereum
when you're bringing in more coins.
That kind of defeats the purpose of crypto in a lot of ways.
So, this triple halving, this is not going to make Ethereum deflationary,
where, every year, we're going to see less and less,
but it is going to crush the incoming supply.
It's going to crush the production, if you will, of Ethereum.
We are going to go from an inflation rate, a year-over-year inflation rate of 4.3%,
a new 4.3% of coins coming into the supply every single year,
that's getting cut 90%.
This is going down to 0.4%.
That is insane.
It is going to take 10 years for the amount of Ethereum coming into the supply
to match what, up until recently, one year's worth of inflation was for Ethereum.
So this is so incredibly bullish for the price
that it is insane.
This is the push that very likely could push Ethereum above Bitcoin in market cap.
The one thing to keep in mind here though, the one thing to keep in mind,
is if both of these two things play out--
well, the merge is happening. Hopefully, it does happen over the summer.
But if we get this ETF approval,
are we going to see Bitcoin or Ethereum hit all-time highs first?
Can an approval of a spot Bitcoin ETF be enough to keep Bitcoin ahead of Ethereum?
Now, I tell you guys this all the time.
Ethereum percentage-wise in market cap is much closer to Bitcoin
than any other coin is to Ethereum.
And it's not even close.
We're really bullish on Ethereum on this channel.
We're also bullish on Bitcoin.
But the potential, in my opinion, of Ethereum is much higher than that of Bitcoin.
There's only so many people that want a store of value.
Ethereum's use case is much wider.
It's a new layer to the internet.
So, alright, guys. I want to know,
which one of these things do you think is going to happen first?
Are we going to get a Bitcoin ETF approval? A spot approval for Bitcoin?
Or is the merge going to occur first?
And I want to know, by the end of this year,
do you see Bitcoin and Ethereum hitting all-time highs?
Dro--
drope those.
Drop those down below in the comments.
We're going to go play ball.
Have a blessed day.
BitBoy out.