Why Bitcoin ETF is the best financial product

Bitcoin is now widely known to society. Compared with its popularity, Bitcoin has been tepid for 15 years. Why is it not widely popular?

​First of all, it is because everyone does not know enough about the connotation and significance of Bitcoin. Bitcoin is known as “digital gold” because it can fight inflation. In more popular terms, Bitcoin has the same function of storing and preserving value as gold. Compared with ordinary currencies, Bitcoin has the advantage of not depreciating and can increase in value significantly.

Bitcoin ETF solves barrier to entry problem

It is indisputable that legal currency (ordinary currency) has depreciated. Many people want to buy Bitcoin to combat the risk of inflation. The market has extremely high potential purchasing power for Bitcoin. However, it isn’t easy to buy Bitcoin because the threshold for Bitcoin is too high. Traders need to be able to use an encrypted wallet and understand the mnemonic, private key, public key, and a long string of incomprehensible Address codes, etc.; private key storage is also a big problem, so losing coins is a common phenomenon, and there is also the risk of coins being stolen. In order to avoid the above risks, some people will store Bitcoin in centralized exchanges, but exchanges cannot be trusted entirely because scandals of unauthorized misappropriation of customer assets occur from time to time; the cost of converting cryptocurrency into legal tender is about 1 % – 3%, the handling fee is too high; the exaggeration of negative news……, and other factors, including the unclear legal boundaries, cause people to give up their desire due to many factors such as ignorance, inability to use, and unsafety.

The issuer of Bitcoin ETF is a creditworthy financial institution with a mature regulatory system. There is no problem with compliance and security, and it is purchased directly with US dollars, eliminating the conversion cost of exchanging legal currency for encrypted stablecoins, which is in line with the User’s existing purchasing habits. It solves the problems of safety, ease of purchase, and lower handling fees, turning previous potential customers into purchasing customers. The number of investors will likely show explosive growth.

For people who don’t understand cryptocurrencies and want to fight inflation, buying Bitcoin directly has the risk of zeroing out, but buying Bitcoin ETFs is different. Although you must pay a small fee, you get security and compliance in exchange. And in line with user habits. For example, buying 0.01 Bitcoin sounds weird, but buying $600 of Bitcoin feels much better. Bitcoin ETF cleverly solves some problems in Bitcoin transactions, making it more convenient, safe, efficient, and cost-saving for everyone to purchase.

Bitcoin has the safety of bonds and the upside of stocks

There are two categories of assets: bonds and stocks.

The risk of bonds is small, but the profit is single digit. Bonds generally have a bottom, and ways to protect the bottom exist. The safest option is money funds, but the returns are also the smallest and are slightly higher than bank savings interest rates.

The stock has no bottom; bad news may cause it to fall by 90%, and the stampede effect is pronounced. But the growth rate of stocks is also awe-inspiring. There are many types of stocks, and there are also dividend stocks like bonds.

Bitcoin itself has no good or bad news, and bonds have. Almost no news about gold exists except where extensive gold deposits are discovered. Therefore, there is virtually no decline in Bitcoin caused by its own news. The rise and fall of Bitcoin is determined by market supply and demand. Since market environment risks still exist, various other market news will cause Bitcoin to fluctuate, so it has speculative value.

Bitcoin, like bonds, has a bottom. The bottom of Bitcoin is the bottom of computing power. The computing power refers to calculating the cost of one Bitcoin. The current price is about $30,000. The computing power of Bitcoin is caused by competition. Every significant rise in Bitcoin will cause computing power to rise rapidly, continuing to grow. Another advantage of competition is that computing power is concentrated in teams with resource advantages, including financial and energy advantages. When the currency price drops to the bottom of the computing power, large funds will start buying it because it is more cost-effective to buy Bitcoin directly than mine. Currently, the competition for Bitcoin’s computing power has reached the national level, and waste energy has become the first choice. Competition will make computing power profits tend to average 30% of gross profit. When there is more than 30% gross profit at the bottom and top, computing power investment will be attracted. When the top is more than double the bottom, computing power will flood in, accelerating the technological update of computing power equipment.

Bonds have a price cap, and they will tell you how much you earn in advance. There is no top in the stock; you will make a lot of money if you choose the right one. For example, NVIDIA’s stock price doubled in 9 months, but what stock has this potential? Stock picking is not an easy task; Bitcoin does not have a price ceiling, so it has the characteristics of a stock. Bitcoin and NVIDIA are projects of the same magnitude. Can NVIDIA double its price, also? It doesn’t seem easy compared to Bitcoin.

Why does Bitcoin have the potential to double?

The characteristics of gold and Bitcoin are the closest. Can gold double? Gold is now a market with a balanced supply and demand. If there is no significant financial turmoil, it is just fighting inflation, and there is no condition for a big rise. Bitcoin is different. There are two factors contributing to its rise.

First, judging from the issuance of Bitcoin ETFs in the first 40 days, compared with the capital inflows of the original Bitcoin market, the capital inflows increased more than ten times.

Second is the impact of the halving cycle. One day in April this year, the supply of Bitcoin began to be halved, causing a reduction in supply.

The above two factors determine the rise of Bitcoin: the purchase funds are 10 times larger, and the supply is reduced, doubling the coin price almost a certain event.

In the previous two articles, “What is the reason for Bitcoin to rise to 3.3 trillion?” “, “How high can Bitcoin rise after the United States approves ETFs? ” (chainless.hk) details that Bitcoin will double and grow higher.

Isn’t a Bitcoin ETF, which has the safety of bonds and the rise and legitimacy, the preferred financial product in 2024?

How to get returns comparable to those of Bitcoin back then

In the future, Bitcoin will maintain a long-term upward trend, but no matter how good it is, it will not be as great as the early benefits of Bitcoin. Bitcoin’s long-term rise beyond gold requires a new narrative, further innovation, and a connection to daily payments. Hal Finney, one of the founders of Bitcoin, commented on Bitcoin two days after its launch: “As an amusing thought experiment, imagine that Bitcoin is successful and becomes the dominant payment system in use throughout the world. Then the total value of the currency should be equal to the total value of all the wealth in the world. Current estimates of total worldwide household wealth that I have found range from $100 trillion to $300 trillion.

With 20 million coins, that gives each coin a value of about $10 million.” Hal Finney’s vision calls for Bitcoin to become the primary payment system.

It is also the source of the Bitcoin-based design idea of DW20. This idea has already taken shape in 2023, and the Bitcoin standard is the thinking of a dual-track currency system. It means that the fiat currency standard and the Bitcoin standard compete and develop in parallel. For the principle of the Bitcoin standard, please refer to the article “The Implementation of DW20 Decentralized Standard Currency” on the chainless website (chainless.hk). Simply put, it is to equip Bitcoin with the ruler it lacks, use Bitcoin to measure global economic development and use DW20 to replace stablecoins for daily transactions. Bitcoin and DW20 together form inflation-free Bitcoin-based systems.

The issuance principle of DW20 is the same as that of Bitcoin, which also requires the process from air to asset coin (stablecoin). The difference is that DW20 adopts an unconditional airdrop method. Anyone who registers can receive the airdrop for free. The process from air to assets is a process of huge profits. Let us use DW20 to catch the Bitcoin bus and help Bitcoin simultaneously. Today’s DW20 is like early Bitcoin. Only early participation can make profits easily. The earlier you register, the more likely you will achieve a class leap. The era of huge profits in Bitcoin has been missed. Don’t miss DW20 again, and allow yourself to get rich. Get the airdrop at 0 cost! APP download link: https://eco.chainless.top/download?code=8613510870809VJ You will receive a big red envelope that will rise, possibly to tens of thousands of dollars.

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