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I just made a big play on MicroStrategy (MSTR). Here’s why.
➥ How I Buy Bitcoin EVERY Day (Easiest for Beginners + Lowest Fees): https://www.swanbitcoin.com/projectfinance
0:00 – Portfolio Changes
3:17 – Why I Bought Shares AND Call Options
5:22 – Why I’m Bullish on Bitcoin
10:49 – Learning About Bitcoin Philosophy
MicroStrategy has been aggressively buying bitcoin over the past year and currently owns over 91,000 bitcoins, or 0.436% of the total future bitcoin supply of 21,000,000 coins.
I’m firmly bullish on bitcoin over the long-run, as fixed supply + increased demand/adoption should result in higher bitcoin valuations going forward.
The current bitcoin market cap is around $1 trillion, while the global store of value asset markets are valued at hundreds of trillions of dollars. People buy stocks/bonds/houses/gold/art to store their wealth and grow it over time. Wealthy people do not store their wealth in fiat currencies like the U.S. dollar because fiat currencies lose their purchasing power over time.
Bitcoin is increasingly being adopted as a store of value asset, as it is the most efficient and secure way to store value across time.
If bitcoin continues to gain market share in the store of value asset market, then bitcoin’s market cap will likely increase by trillions, which means the per-bitcoin price can increase by many multiples from its current valuation.
Since MSTR’s valuation is 94% tied to bitcoin, I’m bullish on MSTR long-term. To fit that outlook, I purchased $30,000 worth of shares and $45,000 worth of call options that expire in 2 years. If I am right and bitcoin appreciates significantly over the next 12-18 months, the MSTR stock/options position will surge in value.
If I’m wrong about the timing, then the call options will bleed value slowly. However, I’m optimistic about the long-term trajectory of bitcoin, and therefore MicroStrategy’s equity performance. Should I lose 100% of my call option value, I believe the long-term share appreciation potential will more than recoup the option losses.
While there are no certainties, I place a low probability on bitcoin going to $0 and losing 100% of the MSTR position.
The trades/investments made in this video do not constitute investment advice. Do your own homework and thoroughly research investments/trades before putting any real money into them. You should fully understand the risks associated with the positions you take before committing any capital to those positions.
== VIDEO RESOURCES DISCUSSED ==
What is Money w/ Robert Breedlove & Michael Saylor: https://www.youtube.com/playlist?list=PL2jAZ0x9H0bQFY6wIbQfnrnIlqMcSHd6X
Bitcoin Treasuries: https://bitcointreasuries.org/
VisualCapitalist’s “The World’s Money and Markets”: https://www.visualcapitalist.com/all-of-the-worlds-money-and-markets-in-one-visualization-2020/
United States M2 Money Supply: https://tradingeconomics.com/united-states/money-supply-m2
Bitcoin Circulating Supply: https://www.blockchain.com/charts/total-bitcoins
== Recommended Resources/Videos ==
➥ Why Investors in 2021 Are in BIG Trouble: https://youtu.be/UtlO89J9mRY
➥ Options Trading for Beginners (The ULTIMATE Guide): https://youtu.be/7PM4rNDr4oI
➥ Vertical Spreads for Beginners (The ULTIMATE Guide): https://youtu.be/mwttDWfDQ9c
➥ The BEST Investing Book Ever? I Think So: https://youtu.be/USZ6aUvmZz4
➥ Hypergrowth Options Strategy Course: https://geni.us/options-course