Bitcoin is 100% Poised for New Highs & Breakout – Raoul Pal & Mark Hart #Finance

what they’re doing is is Bitcoin lending and a lot of it is for houses people have huge amounts of Bitcoin on their Balance Sheets and they want to go buy a nice house and so they just borrow against the Bitcoin so we’re seeing it being used as collateral

significantly already in the kind of defi or CI sector um but we’ve already seen micro strategies borrow I think from JP Morgan or lend to JP Morgan so it’s showing that at the banking syst level as you’re saying we’re starting to see the early signs of this is a

collateralized product and therefore you know the demand can go up significantly because it’s not dead money Bitcoin has climbed above $66,000 rekindling optimism and predictions of a breakout though it has yet to set standards psychological barriers and Regulatory challenges that must be

overcome for widespread business adoption Hart explains that criticisms of Bitcoin often arise from potential to disrupt the existing Financial system Mark Hart and Raul pal emphasized the need to consider six key asset characteristics to grasp bitcoin’s value AS Global adoption expands

increased accessibility drives price fluctuations spurred by growing awareness Hart highlights bitcoin’s Superior Security in comparison to vulnerabilities in traditional Assets such as the US dollar he notes that holding dollars imposes a tax through

Inflation and produ productivity gains whereas bitcoin’s Inflation rate remains around 1% catch more insights from R Pal’s conversation with Mark har by checking out clips from their interview if you found value in this content hit the like button

subscribe to the channel and enable post notifications for future updates enjoy the CashNews.co I wouldn’t say that I’m like religious about um Bitcoin per say I do think it’s has the potential and Bitcoin related to be extraordinarily you know disruptive to the sort of incumbent

Financial system and I think that’s why you get sort of the you know shrieking attacks uh on it um as an incumbent is is sort of uh under threat um but I guess to me I’ve talked about this I think you know on here it’s like trying to understand sort of the value of Bitcoin or a

value of you know any kind of asset you know what makes it what what gives it value six characteristics outlined before um that kind of Define the value of any asset where I think we are now is as as Bitcoin is kind of continuing to be uh adopted there are a couple of those areas like you think

about it like cut back so like access you know how easy is it to access something and I think that you know as as Bitcoin is spreading globally that access is improving maybe relative to other uh other cises other stores of of of value etc etc aware Ness is continued to improve and it’s

always changes in the six factors that will will drive the price uh security obviously you know Bitcoin security at this point can be pretty well perfected um one of the problems like with alternate Assets like the dollar is is in fact um uh a lack of security it doesn’t mean

that there’s you know no value of dollars or there won’t continue to be valued in dollars for a long time but there’s a tax on dollars you know I point out that I think that tax is the is the sum of sort of productivity gains and Inflation so that’s sort of

your you know Bogies that you have to hit uh or that’s the that’s the tax on holding a dollar so um and I’ll walk through a little explanation I like to give you basket of goods that are $100 beginning of the year 102 at the end of the year then you’ve had kind of 2% you

know CPI Inflation but uh if if productivity gains not F productivity it been say 2% over the year then that basket theoretically would have been worth $98 at the end of the year and so it’s that Delta is sort of the actx that you know holders of dollars are paying right now

the you know with with Bitcoin I guess it’s a little over 1% uh Inflation and supply and so you know that security seems to be you know much better for for Bitcoin and looking forward with you know expected significant deficits in Debt to continue to be run

out in the developed world you would expect a monetary policy um that or monetary policies that would facilitate that just Debt growth and that’s the world we’ve been you know living in for a long time but I think that From bitcoin’s perspective and you know gold

and other other type of fixed Supply Assets um do particularly well you know kind of in in that environment patina is just simply the gloss the feeling maybe that you get um by status status right and it could be you know like uh um there different reasons to hold you know kind of

different Assets maybe Tesla has been maybe been overvalued for a long time because of of the you know the the personality and the and the the the image that that Elon Musk puts out and I think yeah Bitcoin has has some of that uh you know return on investment there’s not a

well actually there is there can be a return on bitcoin typically you think of Bitcoin as you’re holding it in your wallet and um and it just sits there as as uh as and and inflates um or you hold it at an ETF and there’s a small negative carry holding that but it benefits um I think

that one thing that’s interesting though on you know return on investment is that you know Bitcoin like on the Balance Sheet of a corporation or in the hands of a of a more sophisticated player um is actually worth a lot more than a Bitcoin in an exchange Mark Hart further

illustrates how companies holding Bitcoin on their Balance Sheets can trade at a premium creating unique opportunities the conversation explores how Bitcoins volatility Ena strategies like selling options and monetizing fluctuations har notes that corporations can also

Capitalize on their Bitcoin Holdings by lending it or issuing convertible Bonds with the potential to convert to stock while earning interest Hart and pal also tackle significant obstacles to broader corporate adoption Hart highlights that

Accounting rules discourage companies by reporting losses but not gains while psychological and Regulatory challenges further impede progress yet He suggests that changing Accounting methods could boost adoption by allowing businesses to Mark positions to market

the discussion emphasizes bitcoin’s value as collateral which Hart identifies as a key Factor companies benefit from Price gains by converting Bonds to Equity eliminating Debt pal adds that investors use Delta Hedges to manage downside risk

effectively despite these hurdles both agree that the potential for greater corporate adoption is promising watch more interview Clips with rul Paul and Mark Hart for further insights there are companies out there that you know buy Bitcoin and they hold it on Balance Sheet

universally those companies sort of traded a premium to the the Bitcoin on their Balance Sheet so there and of course the the volatility of this company is through the roof so there are opportunities to do you know all kinds of things whether it’s if you have a constant

strategy of acquiring Bitcoin you could you know sell puts uh and and acquire more as as it comes into you or you can monetize that that volatility there’s a correlation obviously between interest rate and and volatility and higher the ball the higher uh uh demand for you know return so you

know corporations can can either either use their Bitcoin and lend it out what is the trade that they’re doing that’s absorbing billions and billions of dollars of this I guess like a convertible uh bond has like two it’s basically two components to it one is a a bond that inv and

you get a a rate of return interest and then there’s also this component of optionality which is you basically have a bond and an option and the option is you know to convert that Bond into Equity at another price so um because of very high volatility of Bitcoin and a high

volatility of of companies that hold you the stock prices of companies that hold you know Bitcoin on Balance Sheet uh leads some very high realized fall and so the the um the value of that option component of the of the convert and a much higher volatility uh environment is is

worth much more so um so the play on the of course the company side is a company is you know you own Bitcoin and Bitcoin goes you know number go up and uh and your stock price goes up and you know eventually those Bonds are converted into Equity they’re no

longer a uh they’re no longer a liability but you know you’ve kind of sold that option at a bitcoin price equivalent um you Bitcoin per share price equivalent at a you massive premium to the actual price of Bitcoin you take the proceed you turn around and you buy you know Bitcoin and

you rents and repeat from the arbs perspective know they can get a a steady return with this gigantic call option and that you know and what they would do is they would buy the the convert and then they would Delta hedge their position you know short out the stock by the convert uh to some extent

um but you know the possibility is of course that you get your you know you have your your downside protected yeah it’s almost mystifying that there hasn’t been you know much more uh corporate adoption of Bitcoin on bance sheet I think part of it has to do probably with the way

it’s accounted for where you know you don’t uh recognize you know gains in the price of Bitcoin at your Balance Sheet is earnings do recognize losses um that Accounting treatment I believe is going to be changing um at the end of the year people have op

you know the ability to you know Mark their positions Market I think that’ll that will um that’ll be a change but I think that you know generally speaking um the psychology it’s it’s kind of tough you know to go as a CFO of a company or CEO of a company and do something

that’s um so out of the kind of mainstream and you know if you if you fail you want to fail together or most people do and uh right now you’re kind of on an island if you’re out there you know uh pursuing that strategy and there probably a lot of other kind of hidden forces that

are you know also discouraging uh corporations from you know holding ponum Balance Sheet I me the math for for a bank they can’t custody of Bitcoin it it it it eats up their Capital for for doing it for kind of no return um and that’s actually kind of

what I was getting at is the the number six you know uh um uh factor that um that gives value to any asset is um is uh is uses collateral in other news October is often a great month for Bitcoin and the Assets recovery from $59,000 on October 10th has transformed commentators

perspectives Dan tapiero founder of 10t Holdings believes Bitcoin will reach New Heights once it regains price levels not seen in four months he observes that bitcoin’s price is coiling and coiling indicating tightening price action which often precedes a Breakout out tapiero is optimistic

about bitcoin’s ability to reclaim lost territory Jella a pseudonymous Trader Shares this sentiment predicting that bitcoin’s lengthy consolidation will come to an end since April 20th Bitcoin has Consolidated in the 58,000 to $72,000 range gel emphasizes two higher

lows a higher high and price is pushing for new highs claiming that the summer lull is behind us gel’s optimism originates from bitcoin’s previous October performance according to none;">Cryptocurrency Trader Matthew Highland bitcoin’s 10day simple moving average SMA is rising historically when the 10 SMA Rises so does bitcoin’s price which happens 80 to 90% of the time by 2024 this technical indicator implies Rising optimism bitcoin’s Ascent has fueled

speculation about a possible breakout with Traders eyeing $70,000 tapiero forecasts a major move once this level is violated Dan tapiero stated break $70,000 and hell will be let loose gel stated two higher lows one higher high and prices pushing for new highs again the summer lull is over let us

have some fun Highland said that bitcoin’s 10day SMA going upward has typically preceded price gains tapiero gel and Highland offer unique insights into bitcoin’s market dynamics what do you think is the primary barrier to widespread corporate adoption of Bitcoin and how can companies

overcome it to Capitalize on the opportunities presented by this digital gold please drop your thoughts in the comments below share this CashNews.co and hit your thumbs on the like button thanks for watching don’t forget to subscribe for