Bitcoin: The Beauty of Mathematics (Part 31)

Hey everyone and thanks for jumping back Into the cryptoverse today we're going To talk about Bitcoin the beauty of Mathematics part 31. if you guys like The content make sure you subscribe to The channel give the video a thumbs up And check out the holiday sale on into The cryptoverse premium at into the Cryptiverse.com we do have several Different tiers so make sure you check It out including a free one Now before we jump in I did want to Mention something that Um you know I've been talking about a Little bit I've tweeted out we're going To have a new show upon the new year I Know a lot of people like the live Streams and the you know the the Question format because it gets you know It gets me to talk about things that I I Normally probably wouldn't talk about if I'm just sitting up here You know just making a video so we are Going to be starting a new show it's Going to be on starting on January 5th It's going to be called NFA live so not Financial advice live of course because Nothing that I say on this channel is is Financial advice Um it's going to be starting again January 5th and the other hosts of the Show are going to be Rob from digital Asset news I'm sure you've heard of him He's been on the channel quite a lot and

Also guy from coin Bureau and while he's Only been on my channel I think one time I'm sure everyone knows who he is he He's got a fairly large YouTube channel Called coin Bureau he's also got another Channel where he mostly does his live Streams and what we're going to do is We're just going to rotate on a you know Every single week where we're going to Host it so on the first week on January 5th it's going to be on my channel and Then we're just going to rotate it Around right so after my channel it'll Either go to guys Um his his live stream channel or it'll Go over to Rob's Channel I'm not really Sure who's going to go to next but we're Just going to rotate it Very you know very familiar format of Just sort of asking questions posing Questions to each other Getting some of those answers right Making us think about things that we Wouldn't normally think about I think There's been some pretty positive Feedback in the past about that type of Format so we wanted to start it back up Uh in a slightly different way so this Time it's going to be NFA live or not Financial advice live starting January 5th so coming soon now let's go ahead And jump in as of January 1st 2023 the Total cryptocurrency Market Capitalizations coming in at 795 billion

With fair value according to the Logarithmic regression trend line fets You all data which again is a Monotonically increasing function is a 1.85 trillion this represents an Undervaluation or approximately 57 Percent But as I've said before you should Expect it to stay undervalued for quite Some time And In many bear markets we've gone more Undervalued than we are right now in Fact The 2018 bear Market we eventually went More undervalued but it took until 2020. We also went more undervalued by Mid-2015 And all the way back here in 2010 so Again I mean it is you know we are Getting pretty low doesn't mean it can't Go lower right we always have to Remember that if you look at this chart Again we've hit these three major Peaks On the upper logarithmic congression Trend line Foreign Not going to edit that out otherwise I'll never make the video I'm just I'm Still sick Um But I don't really edit things anyways But we've hit the upper logarithmic Regression regression line three times

We unfortunately did not really hit at This cycle we had two more intermediate Peaks arguably brought down by the Deteriorating macro conditions Um And we find ourselves you know again Just sort of in this undervaluation Territory that we know we can spend a Long time in I mean like I I I wouldn't Be surprised if we stayed undervalued According to this chart for all of 2023 Right I mean I think there's a distinct Possibility that we could be undervalued For all of 2023 based on this chart and If we do go back up above the red trend Line like 2019 it would probably be only For a very small amount of time right Very brief amount of time I'm not really envisioning any major Sustained move to the upper part of this Curve in 2023 I think it'll it'll likely Be a bit further out than that but again It does it does just really show you Where we are in the undervaluation Territory the good thing is is you know I do think 2023 will bring plenty of Opportunities to get into the market Um as you guys know in 2022 I've often Said Cassius King stack cash right if You want to buy all coins take a cold Shower and reconsider because they're Most likely going down not only on their USD pairs but also on their Bitcoin Pairs but most of them have and and cash

Has been King I understand that inflation sucks right I get it but there's really nowhere to Hide and and sometimes just sitting in Cash maybe earning some yield with some Relatively risk-free ways through like Treasury yields something like that Pretty attractive option for 2022 likely Going to continue to be a good option For at least part of 2023 I do think We're gonna have some pretty Generational opportunities coming up so Stay tuned for that if you take a look At the percent difference between the Total market cap of crypto which is the White line and the fair value this is What you get Same thing right macro downtrend line We go into the undervaluation territory Somewhat frequently If you zoom in a little bit more you Isolate where we've historically Bottomed with the exception of the 2012 Bottom You'll see that every single time we Actually did go more undervalued than Where we are right now now in 2018 we Did not but we ended up making it there In 2020 right Um the total market cap actually wasn't That much different it was just that the Fair value had changed so much it gone Up a lot so we were technically more Undervalued and this was probably a more

Opportune time to get in because you Know getting in here you basically just You buy and then you experience the bull Market immediately right as of as Opposed to over here you got a brief Bull market but then we still you know Deteriorated for another half year Um and another capitulation more or less Another double bottom before we ended up Going back up so I do think opportunity Is coming Um it's just uh just a matter of time So again I think this is a great way to Look at at um at the undervaluation Overvaluation part of this curve and you Know if you continue one of the things We've talked about before is you know I Do think we will eventually get you know To that lower green trend line do we go Down into it honestly that's what I Would prefer because I think it provides More opportunity of course there's Always the chance we go sideways until We hit it we we've done that before if You look at 2015 it's a good example of Coming out of a year-long bear market And rather than going down into the Trend line we just went sideways until We hit it right kind of same thing in 2018 we we got down here we actually Poked our head back above the the fair Value line but we more or less just went Sideways until we hit it and then the Bull market began

So I don't really think a sustained bull Market is going to occur until we hit This lower green trend line again either We go down to it in short order or we go Sideways long enough for it to for it to Slowly catch up right that's my general Expectation uh it has been for quite Some time as we've been outlining uh the Bear Market throughout 2022 and and now Now we're in 2023. but again you know I I do hope this series provides value to You hopefully it's provided at least Some way to you know better navigate These you know very complicated Financial conditions in the Cryptographers but you know we've talked About this being a bear Market year for Quite some time Um you think back to q1 of 2022 sort of When we're like okay yeah it is in fact A bear market and now it's time to just You know hunker down in cash remember That all coins are really risky in a Bear market and that if you are Considering buying them it's often Better to take a cold shower and Reconsider when you're looking at a a Long Bitcoin bear Market but as we come Out of that bear Market Hopefully in 2023 Um you know we should see we should see Better times ahead uh as we as we get in The next few years but anyways if you Guys are new here make sure you

Subscribe if you're not subscribed if You're if you're Um if you haven't seen this chart before I mean the whole idea is my My Hope Is That crypto will eventually get to that 10 trillion dollar milestone Plus or minus a few trillion of course And as we go to sleep at night we cannot Help but wonder what's a few trillion Dollars among friends