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đ§ Here's why you should stop buying bitcoin
and Hedge Funds are FOMOing into bitcoin
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Good morning patient - Arsen here. â
Welcome back to Bitcoin Therapy â the newsletter that puts the cherry on your Bitcoin sundae (with a sprinkle of gains and a side of knowledge).
First, happy and relaxing Sunday to 8,830 patients reading today. đ
If youâre on the fence about getting a Bitcoin steel wallet, this should change your mind.
Also, Iâm on my 4th cup of coffee. Maybe thatâs why this weekâs email is the longest to dateâŠ
Alright, hereâs what I got for you this week:
13 out of 25 biggest hedge funds own bitcoin
The Dollar is slowly dying (hereâs proof)
Why you should stop buying bitcoin (let me explain)
Estimated read time: 5 minutes and 2 seconds
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Alright, letâs BitcoinâŠ
13 OUT OF THE 25 LARGEST HEDGE FUNDS OWN BITCOIN
Hedge Funds. The natural habitat of finance nerds who think spreadsheets are sexy.
Picture a guy in a basementâexcept he's perched on the top floor of a skyscraper, wearing a watch that costs more than your car.
His mission? To outperform the market by making "risky" investments, or as normal people call it, "gambling with other people's money."
And you read the title â over 60% of these professional funds own Bitcoin.
Check this out:
Hereâs what you need to know:
Not a single one sold over the second quarter, and most are still buying
Large institutions (>$1 billion AUM) are continuing to increase their exposure
The number of RIAs with a bitcoin allocation grew by 18%
The number of hedge funds with an allocation grew by 46%
The smart money did their math â Bitcoin averages 230% returns per year, 10 times higher than the second-best performing asset class (spoiler alert, there is no second-best. It's like comparing a rocket ship to a potato).
Itâs not if but when the other 12 hedge funds will have to buy Bitcoin.
YOUR BITCOIN IS (PROBABLY) NOT SECURE ENOUGH
I donât want to scare youâŠ
âŠbut I canât imagine anything worse than saving in Bitcoin for yearsâŠonly to lose it. Nightmare fuel.
Let me ask you a question: Do you think your Bitcoin setup is secure, like Fort Knox? Or is it more like Fort Crocks, held together with duct tape and wishful thinking?
If youâre breaking into a sweat, welcome to the club. Iâve been there.
When I first discovered Bitcoin in 2017, I made more mistakes than a toddler with a crayon:
I sent BTC to the wrong addresses âRIP, satsđȘŠ
Overpaid in transaction fees like a chump âRIP, satsđȘŠ
Sometimes just straight-up forgot to back up my wallet âRIP, satsđȘŠ
You get the point.
This happened because no one was there to slap some sense into me. But fear not, young Padawan! Your Bitcoin Jedi Masters have arrived. Meet The Bitcoin Way, your very own Bitcoin IT dream team.
The Bitcoin Way team offers personalized, secure, and comprehensive solutions for EVERY aspect of your Bitcoin journey:
Wallet & node setup âso you donât accidentally send all your Bitcoin to your pizza delivery guy
Inheritance planning to ensure your Bitcoin doesnât die with you
Fast and reliable tech support
Theyâre rated 4.9/5.0 on Apollo and have 25 years of cybersecurity expertise. So yeah, theyâre the real deal.
THE SLOW COLLAPSE OF THE U.S. DOLLAR
What if I told you thereâs a new rival to the US Dollar that's more popular than avocado toast at a millennial brunch?
This new rival has:
159 countries behind it
23% of global GDP
40% of the world's population
16% of global trade
30% of global foreign exchange reserves
52% of global oil production
Well, it exists, and itâs called BRICS+.
This cute boyband-looking crew are the leaders of the biggest emerging economies.
BRICS is an acronym for five leading emerging economies: Brazil đ€ Russia đ€ India đ€ China đ€ South Africa. There are other countries too, but they're like the extras in a movie - essential, but no one remembers their names.
Their goal? Overthrow the US Dollar global hegemony.
When the Ukraine war started, the U.S. cut off Russia from global trade and seized its foreign assets.
This spooked many nations and got them asking: Why hold USD-denominated assets if the U.S. can just take them by force?
BRICS is nothing new â itâs been around since 2009. So why am I talking about it now?
Well, because they are now demanding the Middle East to stop using the US Dollar for oil trade
No oil trade in dollars â> less demand for dollars â> weaker US economy
Saying that this would be catastrophic for the US is an understatement. A big one.
So what can the US do? Sanction all 159 countries? Lol.
Realistically, they have 2 options:
Do nothing and slowly and become as irrelevant like MySpace
Adopt a Bitcoin standard before they lose all geopolitical leverage
But most importantly, it looks like the BRICS nations are cooking up their own currency: BRICKbucks.
They plan to back their new currency with gold and other commodities.
Compare that to the USD, backed solely by Jerome Powellâs tears.
Weâre not talking about some minor league player here - BRICS is a significant threat to the U.S. hegemony.
But donât get me wrong: Iâm not rooting for the BRICS â its equally destructive for normal people as USD.
It's like choosing between getting a root canal or stubbing your toe every day for a year. Both are painful, just in different ways.
My choice? Bitcoin.
Because when the world's currencies are playing musical chairs, Bitcoin is the kid who brought their own beanbag.
YOU SHOULD STOP BUYING BITCOIN
No, this is not clickbait.
Gasp, I know, right? But before you accuse me of being a secret fiat-loving lizard person, hear me out.
You need to stop buying Bitcoinâbecause you should be earning it instead! đ°
Think about it: why earn money you know will 100% depreciate over time (like USD OR EUR) when you could be earning the best money known to mankind directly?
It's like choosing between a juicy steak and a slice of moldy bread.
Because remember: the average lifespan of fiat currency is only 35 years.
The dollar is already 53 years old (I count from 1971 when it was removed from the gold standard).
Imagine this: youâre an American living in Argentina. Would you rather get paid in dollars or pesos?
Exactly. You wouldnât want to touch pesos with a 10-foot pole. You'd only touch them when the empanada cravings hit hard.
Thatâs how you should think think about Bitcoin.
Bitcoin > USD > Argentine Pesos > Your friend's cryptocurrency named after their cat
âOkay, I get it, but I have bills to pay in fiat!â
No problem. I'm not suggesting you pay your landlord in NFTs of pixelated monkeys.
I also earn in bitcoin and have monthly fiat bills.
And if youâre like me, youâll have to:
Spend Bitcoin directly
Buy fiat to cover your expenses (like a normie)
Spending Bitcoin is easier than ever. It's no longer just for buying questionable substances on the dark web!
Need proof? Here are 2 reasons why spending Bitcoin in 2024 is easy:
Bitcoin merchant adoption is accelerating
There are over 10,000 vendors worldwide who accept Bitcoin. Check it out:
Source: https://btcmap.org/
But keep in mind that these are only the vendors who have manually added themselves to the map.
In reality, many more small businesses are accepting Bitcoin.
And before you ask, you canât buy a girlfriend with BitcoinâŠyet.
There are ways to pay in Bitcoin, even if the merchant doesnât accept it.
What if I told you you can buy ANYTHING on massive online stores such as Amazon and Nike?
Yup, you read that right. You can use tools such as:
As for selling Bitcoin and buying fiat money, there are hundreds of online exchanges for that. My favorites are Relai in Europe (I work there) and River in the US.
"Okay, smart guy, where can I earn Bitcoin?"
My personal favorite is Plebwork â it's like Fiverr for bitcoiners. Itâs a marketplace that connects freelancers with clients who pay in bitcoin.
Whether youâre a designer, copywriter, developer, or full-time animal balloon maker, there's a Bitcoin-paying gig for you.
Here's why I like it:
Payments are 100% self custodial
No fees for freelancers (yup, thatâs right)
Built by bitconers â€ïž
So, still on the fence?
Just ask yourself: why accept money guaranteed to lose value over time?
Or do you still enjoy watching your money perform a disappearing act worthy of Houdini?
Yeah, me neither.
THINGS I FOUND INTERESTING đ
Malaysian authorities destroy $450,000 worth of Bitcoin equipment
El Salvador will provide Bitcoin certifications to 80,000 government employees
Banca Sella, Italyâs second-oldest bank, will offer bitcoin to its 1.3 million clients
THIS WEEK IN A MEME đ
FROM THE ARCHIVE đ
This guyâs investment went from $50,000 â> $30,000,000.
When I grow up, I want to be this guy.
PATIENT REVIEW đ§
Thatâs it for this oneâbig thanks to The Bitcoin Way who allow us to write Bitcoin Therapy. You support us by supporting them â€ïž
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It only takes 5 seconds, but it means the world to me. Thanks!
See you next Sunday,
Arsen
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