If you think Bitcoin is up a ton this past year, wait until you see TSLA...
Every time I turn on CNBC these days there are people talking about how high bitcoin is.
From those saying it's at nosebleed levels to those saying it makes no sense to those saying it's doing to come crashing down because it has gone straight up.
For those people, I have to wonder what they think about TSLA...
If you haven't been paying attention to traditional finance this past year, TSLA has had a monster year.
It's up over 800% from where it started the year, which dwarfs what bitcoin has done:
(Source:
)https://twitter.com/Schuldensuehner/status/1346889101698621440/photo/1
- Schuldensuehner
From January until now, TSLA is up 820% while bitcoin is ONLY up 390%.
That's basically a 9x for TSLA and a 5x for bitcoin.
So, while yes bitcoin is up a ton, if anyone out there is calling it a bubble they better have even harsher things to say about TSLA.
What goes up must go higher...
The infamous phrase of "what goes up, must come down" doesn't always hold true when it comes to investing.
In fact, if you look back at history at how an asset tends to perform when it makes a new all time high, you will be pretty surprised what you find.
It doesn't go back down after that, nope, it tends to make new high after new high after new high.
That's because there is often a fundamental reason it is going up.
In the case of bitcoin is simply because institutions have finally decided it's a worthwhile holding and there simply isn't enough supply for them to all get involved.
Rising demand in the face of mostly static supply means prices go higher.
There's been a fundamental change with bitcoin and that means that just because it's up, doesn't mean it will go back down.
The game has changed.
Ever since bitcoin broke $20k I have been saying that bitcoin will likely never trade below $20k again and I think that is more true now than ever before.
Right now we have the early adopter type of institutions getting involved, guys like MicroStrategy and Square, but eventually the dinosaurs of the investing world will get involved as well.
They will be the ones putting billions into bitcoin when it is multiples higher of where it is today.
Mike Novogratz said it best yesterday when he said we are in the first half of the first inning with bitcoin.
So, for those thinking bitcoin is too high or in a bubble, they need to understand that the game has changed when institutions got involved and the old rules no longer apply.
Stay informed my friends.
-Doc