The Bullish Case for Bitcoin

Bitcoin focused company made an eye-opening bull case for Bitcoin

A Norwegian-based company, Aker ASA that is owned by billionaire Kjell Inge Røkke, has announced a new company called Seetee.

Settee is a company that will invest in exciting bitcoin-focused projects and companies. It will hold all the investable assets in bitcoin which is a good thing.

In a letter to shareholders, Røkke addressed 3 things.

1. First, he quoted “we will use bitcoin as our trea­sury as­set and join the community,” and “In Bit­coin speak, we will be hodlers.”
2. Second, Seetee will set up a mining operation that will transfer electricity without stable demand on the local ground — hydropower, wind, solar — to economic assets that can be beneficial everywhere.
3. Third, we will build and in­vest in projects and companies in Bit­coin’s ecosystem. This is where our true pas­sion is!”

Furthermore, Bit­coin is in our eyes, a load-bal­anc­ing eco­nom­ic bat­tery and bat­ter­ies are es­sen­tial to the en­er­gy tran­si­tion re­quired to reach the tar­gets of the Paris Agreement, said Røkke.

The letter says that Seetee will not only hold bitcoin as a valuable asset but also consider it as an investment in the physical and digital form. For example building infrastructure on top of or around the network.

This news is bullish because bitcoin as a digital asset is a function of profitability provides to stakeholders. The Seetee company will take interest in all possible ways soon.

NOT INVESTING IS THE RISKIEST DECISION

Risk is not an ob­vi­ous con­cept. What’s com­mon­ly con­sid­ered risky is frequent­ly not. And vice ver­sa. We are used to think­ing that cash is risk-free. But it’s not. It’s im­plic­it­ly taxed by in­fla­tion at a small rate every year.

The shareholder’s letter addressed concerns about the stability of the long-term monetary fiat system and the delicate behavior of bitcoin. Whilst bitcoin may still have considerable daily volatility, but at the bottom layer, bitcoin is a reverse of fragility and volatility.

The term “fiat,” which means “an act of will that cre­ates some­thing with­out fur­ther ef­fort.”

Why it is reverse?

Because of its hard-capped supply of 21 million paired with exemplary supply inelasticity. Røkke also talked about involvement in the broader ecosystem and the unbalanced upside shown by bitcoin.

The bitcoin market cap expands in size and liquidity, in addition to the truth that bitcoin has actually been the most effective performing asset of the last 5 to 10 years.

The probability of bitcoin as a leading international monetary system increases the bigger it becomes, and more investors and billionaires will take notice.

TURNING CHALLENGES TO POSSIBILITIES

We all know that money is a social construct, that only works if we collectively believe in it. In the digital world, there were many attempts but bitcoin was the one that emerges out.

In the beginning, its worth was in many zeros but the more people believe in it, the more worthy it becomes — it is a classic network effect.

“I was scep­ti­cal of bit­coin for many years and my ar­gu­ments were more or less con­sis­tent with every­one else’s: the network’s elec­tric­i­ty con­sump­tion is waste­ful, the net­work is not scal­able, its ideals of anonymi­ty play into the hands of crim­i­nals, and so on.”

Røkke thoroughly explained why these statements by bitcoin doubters are in most case scenarios ill-informed and patsy. Røkke’s talk on the energy of bitcoin mining was specifically purposeful.

“The fi­nanciers of min­ing op­er­a­tions will in­sist on us­ing the cheap­est en­er­gy and so by de­f­i­n­i­tion it will be elec­tric­i­ty that has no bet­ter eco­nom­ic use. Bitcoin then acts like an economic battery. What otherwise was of lit­tle value locally, is turned into an economic as­set that can be used glob­al­ly.”

The letter also pointed out the possibilities of the Lightning Network to enable billions throughout the International economic system, chances of micropayments with a digital asset, monetary asset comparison to gold, the power of the electronic network effects, and much more about financial markets.

Disclaimer

This article is for informational and educational purposes only. It is not intended to be any investment advice or suggestion.

References:

1. https://www.seetee.io/static/shareholder_letter-6ae7e85717c28831bf1c0eca1d632722.pdf
2. https://bitcoinmagazine.com/business/in-shareholder-letter-seetee-founder-makes-bull-case-for-bitcoin