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National Debt, GDP, & M1 Money Supply of the four global power houses, US, China, Russia, & Japan.

 

 

By the end of this read, you will know the ratios of DEBT/GDP risk and the total gold held in treasury versus their M1 money supply.

Firstly, let's look at each item:

National Debt: The total money a government owes to entities such as central or global banks, the IMF, foreign governments, and companies. The national debt also includes interest payments.

GDP (Gross Domestic Product): The total value of goods and services produced in a country. It's akin to adding up all the price tags of cars, food, computers, minerals like gold or oil, produced by a country, and determining the country's wealth.

M1 Money Supply: M1 money supply includes physical cash, coins, and demand deposits (like checking accounts) easily accessible for spending. It does NOT include term deposits. M1 represents liquid cash.

 

National Debt

NATIONAL DEBT / GDP

It's no secret that the US is indebted up to their eyeballs and continues to add to their national debt by funding interest on the debt (yes, you read that right. They borrow to pay interest on the debt they already have), defense & wars, bonds, public infrastructure, healthcare, economic stimulus, and much more.

DEBT / GDP is a calculation used to understand the health of a country, or a company for that matter. The lower the DEBT/GDP ratio, the healthier the balance sheet; vice versa, the higher the ratio, the riskier the balance sheet. A debt-to-GDP ratio over 100% suggests that the country is heavily indebted relative to its economic output. This can be a concern because it indicates the country might struggle to pay off its debt without significant economic growth or changes in fiscal policy.



Russia

The national debt stands at $425.7 billion US dollars, with a GDP of $2.192 trillion US dollars. Russia is a powerhouse when it comes to resources like energy, in terms of oil and gas. It's also rich in precious metals and is one of the largest exporters of military equipment. Furthermore, it's a major producer of agriculture and manufacturing goods.

The GDP value of the country is 5.15 times their national debt, resulting in a DEBT/GDP ratio of 19.4%.

 

China

National Debt: $14.4 trillion US dollars.
GDP: $17.6 trillion US dollars.
DEBT/GDP ratio: 81.8% - Despite the high ratio, China continues to outproduce its debt. However, a looming risk is its declining population, with analysts forecasting a halving by 2050.

 

 

Australia - Let's look at our backyards ratio!

National Debt: $1.2 trillion US dollars.
GDP: $1.8 trillion US dollars (Phewww ~ wipes sweat~)
DEBT/GDP ratio: 66.66% - The three factors to consider here are our rich resources in iron ore, gold, coal, and natural gas, immigration/international students, and beef and agriculture.

 

 

Now we look at the higher risk countries.

United States of America - The USA, the big shot on the global stage, flaunting its currency like it's the coolest kid in school. But guess what? That flashy currency comes with a surprise accessory - a hefty ball and chain strapped to its ankles!

National Debt: $34.76 trillion US dollars.
GDP: $28.43 trillion US dollars.
DEBT/GDP ratio: 122.2% - As stated above. "A debt-to-GDP ratio over 100% suggests that the country is heavily indebted, ...country might struggle to pay off its debt". 

 

 

Japan

National Debt: $14.42 trillion US dollars.
GDP: $4.49 trillion US dollars.
DEBT/GDP ratio: 321%!!! - In Japan, over 43.3% of the national debt is held domestically, including by entities like the Bank of Japan. Simultaneously, Japan is a major holder of U.S. Treasury bonds. This reflects a unique economic dynamic where Japan acts as both debtor and creditor on the global stage.

 

M1 MONEY SUPPLY - "It's only when the tide goes out that you discover who's been swimming naked." - Charlie Mangar

In 1971, the reserve currency of the world, the US dollar, split from the gold standard, resulting in a fast pace of money printing like we had never seen before. In 2008, the global financial crisis (GFC) devastated ordinary people, while those responsible were bailed out. Thankfully, Satoshi Nakamoto gifted the world Bitcoin shortly after to hedge against such stupidity. Then in 2020, Covid-19 surfaced, leaving the US government to print, print, print, brrrrrrrrrrrrrrrrr.

 

Here is a table from 2008, 2020 to 2024 on the M1 money supply in US Billions.

Global M1 Supply

 

Four of the five countries are reporting inflation most years at 3-4%, while their M1 money supply tells us a different story. Japan has the lowest inflation rate at 9.20% per annum for 16 years, with Russia, China, and Australia averaging 12% per annum in money expansion for the same period. And now, brace yourselves for the US... with a 23.7% expansion per year, of which there has been a 322% increase from 2020 to 2024. The top 1% in the US are content, while the lower class is experiencing a new era of depression.

 

National Debt GDP & M1 Money Supply
National Debt GDP & M1 Money Supply

 

Now, in terms of GOLD inventories, most of these nations are nowhere near a sovereign standard. However, Russia has quite the impressive stash, with 36% or 1/3 of their cash reserves backed by gold. It makes you wonder: why did the West start a war with Russia?

 

Bitcoin is scarce and is already being mined at a slower inflationary rate than gold per annum, and this is set to drastically reduce every 4 years. Bitcoin functions as money, is finite, borderless, and addresses the issue of decaying wealth. It's not difficult to observe what has happened since the gold standard, the GFC, and Covid. You need to work harder, longer, and sacrifice the time you spend with your family to chase your decaying dollar. Australia's dollar has inflated on average by 7.17% every year since 1975, and 11.85% every year since the GFC. If you haven't noticed how challenging it's becoming, hopefully, this helps. Share it with your friends and family.

In a world of chaos, Bitcoin brings order.

Thank you for reading.

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References:
https://www.usdebtclock.org/index.html
https://tradingeconomics.com/china/money-supply-m1
https://tradingeconomics.com/russia/money-supply-m1
https://tradingeconomics.com/japan/money-supply-m1
https://tradingeconomics.com/united-states/money-supply-m1
https://tradingeconomics.com/australia/money-supply-m1

Bitcoin's supply will be almost at 99% by the end of this halving cycle. The fixed schedule is setting off alarms for anyone who is still unaware.

The one in four year Bitcoin halving finalized on the 19th of April 2024, and this highly anticipated event has yet to take effect. Why so?

There are 32 total halvings scheduled in the next 112 years, and 4 have complated.

What does this mean?

Every four years, less and less bitcoin
(small "b" refers to the coin, uppercase "B" refers to the network) enter the market from it's total 21,000,000 supply.

In the beginning, there was a treasury wallet with 21,000,000 total bitcoin.

A fixed small portion would enter the market every 10 minutes from a technique called "mining" from this treasury.

Every 10 minutes there is a block, and there are 144 blocks in a day.

Bitcoin halving schedule

Genesis Blocks: 2009 - 2012:

50 bitcoin per block
7,200 per day
2,628,000 per year

Total mined by 2012: 10,512,000 bitcoin of the full  supply or 50%

1st Halving: 2012 - 2016: 50 bitcoin drops to 25 bitcoin (half)

25 bitcoin per block
3,600 per day
1,314,000 per year

Total mined by 2016: 15,768,000 bitcoin of the full supply or 75%

2nd Halving: 2016 - 2020: 25 bitcoin drops to 12.5 bitcoin (half)

12.5 bitcoin per block
1,800 per day
657,000 per year

Total mined by 2020: 18,396,000 bitcoin of the full supply or 87.6%

3rd Halving: 2020 - 2024: 12.5 bitcoin drops to 6.25 bitcoin (half)

6.25 bitcoin per block
900 per day
328,500 per year

Total mined by 2024: 19,710,000 bitcoin of the full supply or 93.8%

4th Halving: 2024 - 2028: 6.25 bitcoin drops to 3.125 bitcoin (half) CURRENT

3.125 bitcoin per block
450 per day
164,250 per year

Total mined by 2028: 20,367,000 bitcoin of the full supply or 96.9%

5th Halving: 2028 - 2032: 3.125 bitcoin drops to 1.5625 bitcoin (half)

1.5625 bitcoin per block
225 per day
82,125 per year

Total mined by 2028: 20,695,000 bitcoin of the full Bitcoin's Supply or 98.55%

 

This will continue until there is 0 bitcoin left in the treasury.

By the year 2034, 99% of all bitcoin would have been mined.

Let me blow your mind.

The remaining 1% of Bitcoin's supply will be released over 100 years.

This is why it's NOT TOO LATE!

How many days after a bitcoin halving does it take for price to start moving? Read the blog here as we dissect the possibilities.

https://btcclub.com.au/days-until-bitcoins-price-moves/

Bitcoin Saves Our Future.

Thank you for reading.

Are you looking for any tools or which Australian Bitcoin exchange to buy or sell? Look no further!

Bitcoin Blogs

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⚡ Automatically entered into Every bitcoin Draw.
⚡ Your Entries Into Draws Never Expire and Roll Into Next Month.
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⚡ Exclusive Discounts with Partners Including 10% off Blockstream Jade & HardBlock Exchange Offer.
⚡ Bitcoin Starters Guide One Page Checklist on Signup.
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Australian money supply has inflated at alarming rates post Covid decaying most of Australian's wealth. There was only one asset class that beat the rate of inflation over these years.

The Australian Money Supply M1 comprises physical currency and demand deposits, representing the most liquid forms of money readily available for transactions. It excludes less liquid assets like term deposits. Central banks monitor M1 to gauge immediate liquidity in the economy, guiding monetary policy decisions accordingly.

Australia adhered to the gold standard until 1931, pegging its currency to the British pound, which was also backed by gold until the British government abandoned the gold standard in the same year.

The Reserve Bank of Australia commenced operations on the 14th of January 1960. From 1960 to 1975, Australia held approximately $8.269 billion AUD in money reserves (M1) as it broke away from the British pound in 1966. Australians embarked on a new currency journey with their native Australian Dollar.

Australian M1 Money Supply


From 1975 to 1990, the Australian money supply had increased to $43.51bil, or 419.74%, an average of $2.3 billion, or 7.7% per annum, reflects the consequence of adopting an unbacked currency. This flexibility allows for significant adjustments.

The US abandoned the gold standard in 1971, allowing for unrestricted money printing as the world's reserve currency. Consequently, other countries were compelled to follow suit, leading to an escalation of uncontrollable debt. Starting from 1990, it begins to exponentially accelerate.

From 1990 to 2016, Australia printed $700 billion dollars, marking a 1,644% increase over 26 years, or an average inflation rate of 7.17% annually. (To real estate owners: your property may have increased over time, but only at the rate of inflation. Here is the evidence. If property doubles in value every 10 years, so does the money supply).

From 2016 to 2024, the entire M1 supply doubled to $1.67 trillion. It took 40 years to reach $700 billion, but only 5 years to double it and then some, increasing by 2.3 times.

Bitcoin has been the only asset class to not only beat, but perform at multples of this obsurd money value diltuions. From 2016 to 2014, Bitcoin's price is up 10,613%, or an average gain 28.4% every year.

Bitcoin returns year on year



Another interesting finding was the migration / student visa numbers.

One incredible aspect of Australia is its multiculturalism. We are enriched by a diverse array of foods, cultures, and ideologies from around the world. Immigration is vital, offering people a chance at a better life, and we embrace it. However, we prioritize sustainability in our approach to immigration.

Australia's immigration estimate was approximately 600,000 from Jun 2021 to June 2023, increasing Australia's population by 2.6%, and a further 375,000 expected from June 2023 to June 2024.

australian immigration



Australia's GDP per person is $66,300 on avg. What does this mean?

Each person in Australia is expected to generate $66,300 of goods and/or services for the country per annum.

If a person is generating less than the average, they would contribute less economic value to the country. Conversely, if they are generating more than the average, the country advances economically each year as a result.

If we mulitply 700,000 (immigrants) x $66,000 (GDP) = $46.2 bil

In this time, Australia has increased the M1 money supply by $50 bil

Has the RBA backed their most recent currency move by immigration?

Australian Money Supply

Bitcoin Saves Our Future.

Thank you for reading.

Are you looking for any tools or which Australian Bitcoin exchange to buy or sell? Look no further!

Bitcoin Converter

Comparing the Australian Cryptocurrency and Bitcoin Only Exchanges - Who is cheapest?

Looking for a cold storage device to secure your Bitcoin? Blockstream Jade Shop

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Become a member and gain access to:

⚡ Member Portal Login.
⚡ Automatically entered into Every bitcoin Draw.
⚡ Your Entries Into Draws Never Expire and Roll Into Next Month.
⚡ VIP Member Only Draws.
⚡ Participate In All Live Stream Bitcoin Games.
⚡ Exclusive Discounts with Partners Including 10% off Blockstream Jade & HardBlock Exchange Offer.
⚡ Bitcoin Starters Guide One Page Checklist on Signup.
⚡ Weekly Bitcoin Report / Data Email.
⚡ Notifications When We Buy / Sell bitcoin... Joke! We Only Buy!!!
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References:
https://tradingeconomics.com/australia/money-supply-m1
Australian Population
Australian Immigration
Australian Immigration Expectation

Let's explore the history of Bitcoin and it's price charts.

How many days until bitcoin's price moves into new major multiples?

By the end of this blog, you'll have information on:

⚡ Dates of each bitcoin halving.
⚡ The approximate price at every halving.
⚡ How long did it take for price to move after a halving.
⚡ How long did it take to break its previous All Time High price.
⚡ How long did the price run for in days and percentage.
⚡ When can we expect the price to move in 2024.
⚡ Has all of this happened before?

If you want answers to those questions, you made it to the right place.

Halving 1 of 32 | Date: 28 November 2012

Price at time: $12.16 US per bitcoin
Previous All Time High: $31.95 in June 2011.
Reward half: 50 BTC per block down to 25 BTC per block.

Following the halving, Bitcoin experienced a consolidation phase for 40 days with minimal movement. On the 50th day after the halving, Bitcoin saw a notable uptrend, posting a 5.8% daily bullish candle at $15.56. It then surpassed the previous all-time high 91 days after the halving, marking a significant 169.35% increase.

By day 133, Bitcoin's price had soared to $280 per coin, representing a remarkable 2,144% surge from the first Bitcoin halving date. Subsequently, Bitcoin underwent a pullback lasting 88 days before embarking on another impressive rally, reaching $1,245 per coin. This surge amounted to a staggering 10,393% increase from the first Bitcoin halving date, spanning a total of 368 days.



Halving 2 of 32 | Date: 9 July 2016

Price at time: $655 US per bitcoin
Previous All Time High: $1,245 in December 2013.
Reward half: 25 BTC per block down to 12.5 BTC per block.

Just 23 days after the halving, Bitcoin experienced a significant drop of 26.84%. However, it took 109 days for Bitcoin to recover back to the price of the second halving.

Following this recovery, bitcoin traded for 236 days before finally breaking the previous all-time high of $1,245 per bitcoin. This breakthrough occurred after a total of 524 days from the 2nd bitcoin halving date.

The journey didn't end there. Bitcoin continued its impressive run, reaching a new all-time high on December 19, 2017, at $19,819 per Bitcoin. This remarkable milestone represented a staggering 2,989.52% increase from the second halving date.

Halving 3 of 32 | Date: 11 May 2020

Price at time: $8,628 US per bitcoin
Previous All Time High: $19,819 in December 2017.
Reward half: 12.5 BTC per block down to 6.25 BTC per block.

Following the halving, bitcoin underwent a period of sideways consolidation lasting 70 days before showing any significant upward movement. On the 77th day after the third halving, bitcoin experienced a notable 11.62% increase in price.

Bitcoin continued to advance, ultimately breaking the previous all-time high 203 days after the third halving date. It reached its first major all-time high 339 days after the halving, soaring to $64,617 per coin.

After reaching this milestone, Bitcoin experienced a 54% decline before embarking on another rally, breaking a new all-time high at $69,000 per coin. This occurred 550 days after the third Bitcoin halving date, representing a solid 678.11% increase from the halving date.

Halving 4 of 32 | Date: 19 April 2024

Price at time: $63,752 US per bitcoin
Previous All Time High: $73,841 on 14th March 2024.
Reward half: 6.25 BTC per block down to 3.125 BTC per block.

Remarkably, for the first time in four halving cycles, Bitcoin was already at an all-time high just 37 days before the halving. This was uncharted territory for Bitcoin.

What we know from past data is that it typically takes more than 40 days for any major price movements to occur after a halving event. This suggests that patience is required as miners adjust to the reduced reward of 3.125 bitcoins per block. They are currently recalculating their profit and loss considering energy costs and efficiencies, a process that takes time.

Additionally, there has been a sell-off, reminiscent of the second halving. However, this situation is unique because Bitcoin's price has increased by 117.63% year-to-date, unlike previous halvings. As a result, some investors with weaker resolve may choose to take profits during this period.

Based on data from previous halvings, significant advances typically occurred after 40, 70, 106, 203, and 336+ days. This suggests that bitcoin may consolidate until the end of May, June, or possibly November 2024.

Patience is crucial during this period. Understanding Bitcoin, its technology, its mission, and its role as a hedge against traditional finance will provide reassurance. The great news, you'll may have more opportunities to dollar-cost average (DCA) before any major moves occur.

Here are some interesting facts to consider:

  1. bitcoin has never broken an all-time high 30 days before a halving.
  2. Once Bitcoin passes its 108th day after a halving, it never returns to the halving price again.

If history repeats itself, by August 5th, which coincidentally is my birthday, we may never see Bitcoin trade below $63,752 again.

Bitcoin Saves Our Future.

Thank you for reading.

Are you looking for any tools or which Australian Bitcoin exchange to buy or sell? Look no further!

Bitcoin Converter

Comparing the Australian Cryptocurrency and Bitcoin Only Exchanges - Who is cheapest?

Looking for a cold storage device to secure your Bitcoin? Blockstream Jade Shop

Checkout our upcoming live stream events: Promotions Page

Become a member and gain access to:

⚡ Member Portal Login.
⚡ Automatically entered into Every bitcoin Draw.
⚡ Your Entries Into Draws Never Expire and Roll Into Next Month.
⚡ VIP Member Only Draws.
⚡ Participate In All Live Stream Bitcoin Games.
⚡ Exclusive Discounts with Partners Including 10% off Blockstream Jade & HardBlock Exchange Offer.
⚡ Bitcoin Starters Guide One Page Checklist on Signup.
⚡ Weekly Bitcoin Report / Data Email.
⚡ Notifications When We Buy / Sell bitcoin... Joke! We Only Buy!!!
⚡ Invites to Private Events and Webinars.

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Microstrategy 2024 Q1 Results Key Insight:

Microstrategy is a business analytics & intelligence company that provides intelligence to companies like Disney, Walmart, Amazon, CVS Health to name a few.

Click Here for the full report posted by Michael Saylor
of Microstrategy 2024 Q1 Results.

They adopted a bitcoin strategy during the pandemic to combat business decay and forward thinking inflation issues from the money printer which increased the money supply, devaluing the cash they held.

The interest total payable is $10.52 million, paid twice per year to the note holders.

The note holders have the option to:

  1. Convert the notes into shares of $MSTR at $1,497 & $2,327 per share in 2030/31.
  2. Hold until mature and $MSTR pays them back the principle.
  3. Hold and decide to postpone to convert at a later date if they deem the price of shares will come down.

They way they are converted:

If they initially invested $10,000 US to buy the notes, they handed Saylor the $10k to buy bitcoin.

In the year 2030, let us assume $MSTR is trading at $4,000 per share.

The note holder can redeem their notes at $1,497.

$10,000 / $1,497 = 6.68 shares (rounded).

But the market is trading at $4,000 per share in 2030 possibly due to their bitcoin stack worth X mulitples more than the initial investment today.

6.68 x $4,000 = $26,720 of value, or 167% gain.

In this 7 years, the note holder has also received interest at $0.625% or $427.50.

Total value $27,147 or 171.47% gain from initial investment.

The opposite is also true. If the share price is BELOW the $1,497, they may wish to hold onto the note.

Generally speaking, the note holder wouldn't invest in the vision of the capital raise unless they believed the share price or company value would be greater than their initial investment.

Thank you for reading.

Are you looking for any tools or which Australian Bitcoin exchange to buy or sell? Look no further!

Bitcoin Converter

Comparing the Australian Cryptocurrency and Bitcoin Only Exchanges - Who is cheapest?

Looking for a cold storage device to secure your Bitcoin? Blockstream Jade Shop

Checkout our upcoming live stream events: Promotions Page

Become a member and gain access to:

⚡ Member Portal Login.
⚡ Automatically entered into Every bitcoin Draw.
⚡ Your Entries Into Draws Never Expire and Roll Into Next Month.
⚡ VIP Member Only Draws.
⚡ Participate In All Live Stream Bitcoin Games.
⚡ Exclusive Discounts with Partners Including 10% off Blockstream Jade & HardBlock Exchange Offer.
⚡ Bitcoin Starters Guide One Page Checklist on Signup.
⚡ Weekly Bitcoin Report / Data Email.
⚡ Notifications When We Buy / Sell bitcoin... Joke! We Only Buy!!!
⚡ Invites to Private Events and Webinars.

Memberships Start from $9 per month in fiat, cancel anytime.

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A guide to strengthen your exchange knowledge.

Have you been searching "Where to buy Bitcoin in Australia in 2024?"

Here is a breakdown of the top Australian Exchanges.

Welcome to version 2!

Version 1 was completed in 2023, but of course there were some variables not included that a handful of people reached out asking if we could do a thorough breakdown again.

I am passionate about freedom, which is why I love Bitcoin. You can choose whichever exchange suits your risk appetite. We exclusively support Bitcoin-only exchanges with our purchases at Proof of Work Au.

Dislaimer: We do not have any official affiliation or financial benefits with any of these exchanges, however, we are open to discussions with a Bitcoin Only Exchange to mutually help each other serve our members.

If you are one of the exchanges reading, I’d like to personally thank you for providing Australia with your offer /service. With you, we have the ability to participate in Bitcoin, the freedom money, the savior of wealth decay, the hope for our children.

The changes that were made from the last blog:

1. Removed Digital Surge & Independent Reserve. Don’t see any benefit revisiting these. 

2. Added PayBTC as requested. 

3. Added Withdraw / Deposit Fees. 

In version 1, cash was deposited and we paid for the cost of testing through the slippage. In version 2, the data was compiled together based on the information inside the platforms once logged in, on their website, and through previous testing. Spreads and pricing are variables that change based on liquidity (Volume of orders). The higher the volume of orders, the tighter the spread, the drier the volume, the wider the spreads.

When buying and selling any type of financial asset, there are generally three main expenses you must be aware of. When buying / selling Bitcoin, there is also a network fee.

1. Commission - This is the fee the exchange charges you for the transaction. It's usually applied to both buying and selling.

2. Spread - This represents the gap between the buy and sell prices. While not a hidden cost, it's an expense that sometimes outweighs the commission and is often overlooked.

3. FX conversion rate - Typically, when purchasing an asset in a foreign currency, an exchange rate is applied. We won't be calculating this in our examples.

4. Network Fee: This is the fee passed down from the blockchain that is passed onto miners for their Proof of Work. This fee fluctuates based on network traffic that can not be escaped. We won't be considering this in any of the calculations. 

5. Withdraw and deposits: Fee for AUD transactions.

6. Exchange Withdraw Bitcoin: Fee to withdraw Bitcoin from your exchange wallet, to an external wallet. This is on top of (4.) Network fee.

I also want to thank Cory from Twitter for verifying and helping with some of the data collection.

All the buy and sell prices from these exchanges were captured simultaneously in video for these examples. However, we cannot guarantee 100% accuracy due to latency and refreshing. This guide aims to explain how the calculations are performed.

The examples to follow are for a $1,000 AUD parcel of Bitcoin to buy. We will then sell that parcel a few seconds later to calculate the total expenses of commission and spread.

COINSPOT: Probably the most well known Cryptocurrency exchange in Australia. 

Pros: $0 fees on withdraws and deposits, transparent on bid + ask price. 

Cons: Commission, offer altcoins with huge risk and withdraw fee on Bitcoin is 0.0005 ($50!)

Calculation:

SWYFTX: Another popular Australian Cryptocurrency exchange.

Pros: $0 fees on withdrawals + deposits + low slippage.

Cons: Platform is a mess. Super confusing + Offer altcoins with huge risk. 

Calculation:

AMBER APP: BITCOIN ONLY Exchange

Pros: 0 Withdraw Fee on Bitcoin.

Cons: Commission of 1%. They offer AmberBlack for $99 per annum to reduce comms to 0%. Fees across AUD Deposits.

Calculation:

PAYBTC: BITCOIN ONLY Exchange

Pros: Private and simple to create an account. Also they will send the BTC purchase to your cold storage in seconds!. $0 commission, withdraw + deposits. 

Cons: Their spread is the highest of the group. You end up with the least amount of Bitcoin in the purchase. I also do not like the vague information on buy and sell price. You need to work out the Bid and Offer yourself. 

Calculation:

HARDBLOCK - An Australian BITCOIN ONLY Exchange. I had the pleasure to meet their captain at the BushBash at Beechworth. Absolute genuine and wants the best for Bitcoiners.

Pros: For dollar cost averaging parcels under $1,000 per transaction and sweeping it auto into a Bitcoin wallet (not lightning), they don’t charge commission, deposit fees, and only 400 sats for scheduled withdrawals (not including network fee.).

Cons: Platform does not show Bid and Offer prices. 

Calculation:

BITAROO - BITCOIN Only Exchange - Another exchange where I’ve had the pleasure to zoom their captain who wants the best for Bitcoiners.

Pros: Super tight spreads and comms. Super transparent on price and has a full trade panel with level 2 pricing which I love. Deposits above $1,000AUD are free. They also have Lightning Network!! For our live draw events, we buy Bitcoin, sending the Bitcoin to Wallet of Satoshi Lightning address and it costs about $1 for the entire process from bank to Wallet of Satoshi (incredible).

Cons: Deposits under $1,000 have a small fee of $1,95. Bitcoin Withdrawal fees between 0.0001btc - 0.0003btc

Calculation:

Here is the overview on $1,000 parcels.

 

For Parcels of $1,000 or less sending into an external BTC Wallet ($500 Parcel in example minus network fees)

Hardblock with scheduled withdraws is 400 sats. If you are Dollar Cost Averaging, they become a solid platform to stack smaller amounts of Bitcoin.

Coinspot, well no surprise here. They are charging 0.0005 Bitcoin for a withdrawal. This is currently $50 AUD!

Our final summary:

1. Proof of Work Au will only support Bitcoin Only Exchanges.

2. Parcels above $1,000 of Bitcoin, Bitaroo is hands down the winner. Level 2 and lightning network channels make this exchange the A+ option. Love their platform and how easy it is to use.

3. Hardblock is another simple platform that is championing dollar cost average parcels below $1,000. Scheduled withdraws of 400 SATS make them a juicy option to stack Bitcoin and get the most amount off Bitcoin for your dollar. 

4. Coinspot and Swyftx have a monopoly over cryptocurrencies, but Sywftx provides the best value for Altcoins. Coinspot’s fees for Bitcoin withdrawals are super greedy. 

5. PayBTC has a super private offer that has probably the most discrete KYC, plus they send the BTC to any address you prefer including cold storage which is cool. The cost of such privacy and ease also means you need to pay a premium in spread costs and end up with the least amount of Bitcoin per dollar.

Proof of Work Au is actively seeking a partnership with a Bitcoin Only Australian exchange for our members in Australia. If you would like to help us and the mission, we would love to hear from you at info@btcclub.com.au.

If you would like to support and become a Proof of Work Au member, please visit https://btcclub.com.au/memberships/

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Membership Benefits:

⚡ Automatically enter in every Bitcoin live draw.
⚡ Your entries stack & never expire rolling over to the next month.
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Thank you for being apart of the Bitcoin.

Japanese Pension Funds Explore Bitcoin and could absorb 5% of the total Bitcoin supply if approved for a diversification play.

Japanese Government Pension Funds are seeking clarity (information) on diversifying their portfolio with a portion of Bitcoin.

Their current asset value in management sits at $1.54 Trillion US dollars in 2024, up $270 Billion since 2022.

Pension funds typically invest about 5 to 10% of their total money in gold. This percentage can vary depending on factors like the overall global economy and how risky the investments are. The rest of the funds are put into a mix of different assets, such as bonds (both local and international), various currencies, and stocks (both domestic and foreign).

How many Bitcoins could these Japanese Pension Funds buy if they were given permission and had all the necessary information?

$1,540,000,000,000 * 5% allocation = $77,000,000,000 ($77 Billion)

There are a total of 20,999,999.9769 (21 Million) Bitcoins that are set to be mined and all will be in circulation by the year 2140.

The current US Price per Bitcoin at the time of writing is $66,605 US dollars per coin.

If these Japanese Pension Funds would take this full 5% allocation, the calculation of their total Bitcoin stack in treasury would be:

77,000,000,000 / 66,605 = 1,156,069 Bitcoin or 5.5% of the total Bitcoin supply.

New information suggests that over 5,000,000 Bitcoins have been lost during the early days of the technology. Ignorance and complacency led to many being sent to incorrect wallet addresses, and numerous passwords and wallets are now inaccessible due to the loss of private keys.

If this is accurate, it would imply that these Japanese Pension Funds could potentially hold around 7.23% of the total Bitcoin supply.

Are you looking for a Bitcoin Exchange in Australia? Check out our comparison review on the top 6 by popularity and volume. https://btcclub.com.au/which-australian-bitcoin-exchange-is-best/

If you would like more information on what we do, check out our website at https://btcclub.com.au/

Educating the youth and next generation of Bitcoiners is close to our hearts. If you would like to throw any support around, please check out the charities we support https://btcclub.com.au/charity-partner/ and give them fuel to support their missions.

We are now on NOSTR! Please follow us!

Their Full Bitcoin Transaction History.


Michael Saylor, CEO of MicroStrategy took on a another Bitcoin strategic play, recently orchestrating an oversubscribed convertible notes offer, raising $800 million (previously requesting $600 Million) at a competitive interest rate of 0.625%.

This financial move follows the company's disclosure of a monumental $821 million Bitcoin purchase at almost a US Dollar All Time High, signaling another confident step into the Bitcoin market. Just a day later, Bitcoin's value surged to $72,020, resulting in a staggering $43 million gain for microStrategy, easily covering the annual interest of $5 million for the next 8.6 years. Shareholders have seen a remarkable 1,226% increase since MicroStrategy's initial Bitcoin investment, now holding 205,000 Bitcoins valued at over $14.7 billion.

This strategic diversification, initiated in August 2020 amid the pandemic, has proven transformative, securing MicroStrategy's future and driving substantial returns for investors.

Who is MicroStrategy?

MicroStrategy ($MSTR) specializes in enterprise analytics and mobility software, offering a robust platform for data discovery, analytics, and reporting. Their flagship product, the MicroStrategy Analytics Platform, empowers users to access, analyze, and visualize data from multiple sources.

HyperIntelligence technology delivers real-time insights within web applications and business tools. Mobile apps enable on-the-go access to data, while cloud services offer scalability and flexibility. With a focus on industries like finance, healthcare, and retail, MicroStrategy's advanced analytics capabilities and commitment to security position them as leaders in the BI market, serving a global customer base and driving future growth.

In 2020, their founder and CEO, Michael Saylor saw a vision to save his business during covid. MicroStrategy commenced their first Bitcoin position in August 2020, purchasing 21,454 Bitcoin for $250 million. Since then, they have continued to strategically acquire Bitcoin, with 36 transactions completed as of March 10, 2024, and generated a whopping $7.8 Billion of unrealized Bitcoin profits.

Full Bitcoin Transaction History for MicroStrategy

MicroStrategy Full list of Bitcoin Transactions

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santoshi@walletofsatoshi.com

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Bitcoin presents a generational opportunity.

Bitcoin vs Real Estate? Well I think we discovered the Baby Boomers' real estate secret sauce recipe.

For thirty years, Baby Boomers capitalized on a unique opportunity to amass wealth, often pointing younger generations toward property as the pathway to success, echoing the sentiment, 'We did it, so can you!'

Human psychology intertwines intriguingly with money and investments. One of the most enlightening books I've come across on this subject is 'The Psychology of Money' by Morgan Housel. Housel delves into invaluable lessons on time, greed, and wealth.

Markets move in cycles, and in this post, we'll delve into the 30-year cycle of the Baby Boomer secret sauce that has paved the way for unaffordable Australian property prices, significantly limiting the wealth-building prospects for Millennials and Gen Z.

But fear not, if you're part of Gen Z or Alpha, there are other assets that can help you navigate this landscape.

Bitcoin vs Real Estate is a question we have asked ourselves for a couple of years now, and It's time we broke down the numbers of the realities of downing an investment property.

However, it's essential to note that all the information in this post should not be construed as financial advice. Instead, consider it as valuable data to aid in your future planning and empowerment.



THE AUSTRALIAN CASH RATE

Let's delve into the Australian Cash Rate (Interest Rate), which saw a significant decline from 17% in 1990 to 0.25% in 2020.

Yes, these rates were extraordinarily high. However, it's crucial to remember that the interest the bank paid on savings was also substantial. As individuals saved their paychecks for a deposit, their money was actively working for them.

Moreover, consider that as rates dropped each year, Baby Boomers had more disposable income to either pay down debt sooner or leverage into other assets.

Then, starting from 2020, central banks declared Covid a pandemic and pledged not to raise rates until 2024. However, the reality unfolded quite differently. From 2021 to the end of 2023, the cash rate surged from 0.25% to 4.35%, marking one of the swiftest and most aggressive hikes in history. With central banks reneging on their promise, it's no wonder why trust in them wavers among the public and governments alike.



Australian Historical Interest Rates

MONEY PRINTING - Banks Go BRRRRRRRR

From 1985 to 2023, the Australian government money supply skyrocketed from $23.87 billion to $1.63 trillion.

Australia's currency separated from the gold standard in 1932 and was subsequently pegged to the British Pound, which was backed by gold.

However, in 1966, Australia transitioned away from the British Pound, establishing its independent currency not tied to any precious metals.

This move granted governments a free pass to print their way out of poor decision-making and inadequately planned budgets, often resulting in projects that consistently exceeded their allocated budgets.

Between 2020 and 2023, there was a staggering 60% surge in money printing. It took 35 years to reach $1 trillion, but a mere 3 years to soar to $1.63 trillion.

Australian Historical Money Printing



THE SECRET SAUCE RECIPE!
Now you wonder why Australian house prices were such a great investment for baby boomers? Well it's simple.

Ingredients:
Baby Boomers took out debt to buy property which was 3x the average wage at the time.

Interest only ever went down, so every year they had more money in their pockets to pay down debt.

The governments also printed money every single year adding more dollars to the pockets of boomers.

Immigration gates for students became one of the main economic profits for the country, and aided in higher demand for real estate.

All the above played on simultaneously, and the smart boomers had more and more equity every year that rates decreased allowing them to leverage their portfolios into more real estate.

This year, a shocking truth and tax increase has hit land owners most. A 3x increase for some owners! This poor investor went from $3,375 to $9,150 in land tax... Australian dream or nightmare?

Land Tax - Amid efforts to recuperate from disastrous spending spurred by the pandemic, authorities have turned their focus to land tax, despite its lack of association with Covid itself. Perhaps it's time to redirect attention towards taxing the ones responsible rather than burdening the small-scale investors, the backbone of our communities.

Australian Property Land Tax 2024

let's go over the holding costs and interest of Real Estate based on averages in capital cities in 2024.

Here are the figures for investment property averages. Please forgive us if any amounts do not reflect from your state. We are basing this off our personal property in Victoria, Australia.

Because this property is making a loss, the Australian Tax Office allows you to negatively gear (claim this on your marginal tax income rate). Repeat after me: "Who loves losing money on their investment? NOT ME!"

Total Loss: INCOME - EXPENSES = $25,200 - $46,360 = (-$21,160)

If you work, you can claim this on tax. Let us use 25% as it could be more or less. = $5,290 Tax Refund.

Total Loss = -$15,870 per annum.

Yes, I know what you are all going to say. "What about the capital growth?" Yes, but what about the $709,010 of interest you pay, the debt shackles you bear?

The word "Mortgage" comes from the old French lingo "Mort" Dead, "Gage" Pledge or DeadPledge.

I won't even bear you the pain of the costs of SELLING a property. There are plenty more expenses if you wish to sell, and it takes 4-8 weeks for a sale campaign + the settlement period which means you make 0 income over the settlement and still pay the interest on the loan! OUCH!.

Okay okay, I'm not here to beat down the Boomers. because they really are the back bone of what we have today. They had an opportunity and they took it. I'm happy for my parents, and my grandparents. Even though we look at them and say "WHY DIDN'T YOU BUY MORE?!!!" At least they had the chance.

But now those words horrify me with my two sons, 6 and 4, who already Bitcoin kids!
A fear I have as a dad is my two sons saying to us like we said to our parents, "WHY DIDN'T YOU BUY MORE!!!", and every time the Bitcoin price takes off, I also say to myself, "WHY DON'T YOU BUY MORE F^*KIN".

Based on all the data we have, the experiences and cycles we have analyzed, and the opportunity at hand, let us share the opportunity Generation X, Y, Z have to help empower their future so one day, they may not need to take out any debt at all to live in a house, which every person on the planet should be entitled to. A roof over their head.

House prices in Australia are devaluing against Bitcoin.

But how? Jono Spears on Twitter generated a picture that tells a thousands words. Make sure you give him a follow for his work! https://twitter.com/Bitcoinfinity


(The first writing of this blog was on the 20th of Feb 2024, and the comparison had Bitcoin at $79,500 per Bitcoin. Fast forward 17 days, and the price is at $101,554 per Bitcoin, just to add more fuel to this comparison).

For the first time in modern Australian history, Real Estate prices are going DOWN compared to Bitcoin. If you saved in Bitcoin, you could have, in fact, bought more and more properties over time.

This is Generation X, Y, Z's Secret Sauce! The Recipe is in front of us!


We did the "Proof of Work" to verify the yearly gains of Bitcoin each year to offer a transparent comparison. Also, note that I stopped at 2020 because measuring gains prior becomes quite embarrassing to even compare Bitcoin with any other asset, as it averaged almost 600% per annum.

No one has ever lost money on Bitcoin over a 4-year cycle. No one!

So let's start with a modest $10,000 starting balance. Despite Bitcoin averaging a 102% gain every year, let's be conservative and assume a 30% yearly gain over a 10-year investment horizon instead of being tied to a 30-year home loan.

The repayment on investment property minus the income was $21,160 out of pocket, or $1,763 per month. This can be our monthly contribution to a Bitcoin fund.

Fair to say, the expenses side of Bitcoin wins over real estate. Oh wait, the average yearly return is also quite impressive.

We have two scenarios.

  1. Saving in Bitcoin for 10 years using a 30% average yearly return.
  2. Saving in Bitcoin for 30 years using a 10% average yearly return.

These examples provide a substantial margin of safety for future predictions, although not guaranteed and should not be taken as financial advice.

Instead of pumping $1,763 per month into a property to chase paying back the debt shackled to a bank, and dealing with the headaches of managing tenant issues, allocating this capital to a Bitcoin savings plan offers an alternative to the Australian Real Estate Dream.

An account balance estimated at $1,488,163 after 10 years.

Wait, What??????


Why is Bitcoin producing such returns?

Because it's scarce, desirable, and the demand is fast outpacing supply by 10x. Additionally, there is a deflationary characteristic called the Bitcoin Halving that occurs once every 4 years, where in simple terms, fewer and fewer Bitcoins are mined into existence.

Currently, 900 new Bitcoins enter the market each day, and in April, this will decrease to 450 new Bitcoins per day.

If demand stays the same, the demand will be 20x the supply.

Follow us on social media and keep our website on your favorites list for future blog posts where we will uncover more comparisons and verify the Proof of Work for all the data.

We are accepting 210 members Australia wide: Please check it out https://btcclub.com.au/memberships/

If you would like to help us with our mission, check out the home page. Our goal is to create as many Bitcoiners as possible by giving beginners the chance to stop procrastinating, join a community that accepts fiat, and gives back to them in SATS (Bitcoin) by running live draws streamed on Youtube, Twitter & Nostr.

Once we draw the winning members, we call them over the live stream and guide them through how to accept their new Bitcoin. Fortunately, most of the members who have won are all witnessing gains. This is the curiosity we hoped for, because now they can question what exactly is happening. We provide free guides and support to help them level up and secure their Bitcoin by offering them 10% off Blockstream Jade Hardware devices and connecting them with Australian businesses that accept Bitcoin as tender, or are Bitcoin savvy.

Finally, we donate 2.1% of all memberships to Kids with Cancer Foundation and Bitcoin Moon Fund.

Alternatively, you can donate to the mission.



proofofwork@walletofsastoshi.com



references:

https://tradingeconomics.com/australia/money-supply-m1
https://twitter.com/Bitcoinfinity
https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php
https://tradingeconomics.com/australia/interest-rate

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