Bitcoin will create a new economic elite by 2020
10. Juni 2020
As many economies slowly begin to open up again, their stability remains uncertain. The year 2020 will go down in the history books as the year when financial markets suffered their worst day since 1987 and the value of oil was negative for the first time.
Bitcoin’s (BTC) popularity continues to rise around the world, particularly as emerging markets with populations in the billions begin to recognize its potential. The asset has shown extraordinary resilience in the worst economic downturn of our time, even surpassing gold as the best performing asset in 2020.
The COVID-19 pandemic has put an end to the global economy, and the United States Federal Reserve, the world’s most powerful central bank, has had no choice but to print unlimited money from its magic money tree. The damage is estimated to cost at least $1 trillion, and its flow effect causes widespread unemployment.
The crisis will not be over when the pandemic is over, and it will reveal to the traditional financial system that there is much to learn. This year, Bitcoin will create a new economic class refuted that charge / t’s not entirely / first proposed in march / geofence certain digital assets / w3c had trouble / issued a joint warning / disagreement over the proposed code changes / earlier this week / a prolonged banking fight / “gift” from its creators, and it is time for everyone to pay attention to it – or they will miss out.
Goldman Sachs will host a conference call on the crisis, crypto-currency and inflation
Traditional finances need to be renewed
The moment the Federal Reserve announced „infinite money“ and the value of oil went into decline, the value of Bitcoin grew. People are beginning to realize that we can no longer rely on traditional forms of finance. For decades, debt around the world has grown, and asset bubbles have continued to grow. We seem to have learned nothing from the 2008 global financial crisis. This health crisis is the icing on the already crumbling cake on which our society is built. But with Bitcoin, 2020 could be a different story.
Bitcoin’s ability to drive traditional financial markets upwards is a telling sign not only of its resilience, but of its role as a safe haven. On January 3, 2009, when the Genesis block was extracted from Bitcoin, the mysterious creator, Satoshi Nakamoto, left a message in the block’s raw data: „The Times 03/January/2009 Chancellor on the brink of a second bailout for banks. Twelve years later, the message has never been clearer:
Bitcoin was invented to encourage complete reform of a volatile financial system by separating money and state. If you look at Bitcoin’s ability to exist without centralized control, you will see a glimmer of hope.
Bitcoin will come out of this crisis even stronger
Tim Draper had the merit of saying, „It will be Bitcoin, not the banks and governments that save the day. The assets that investors have historically relied on are no longer reliable, and the macroeconomic forces are proof that existing forms of trade cannot prevent another crisis.
There is a very simple reason why Bitcoin is a reliable asset compared to traditional fiat: There is now officially an „infinite“ amount of USD, but there will never be more than 21 million Bitcoins. The meme „money printer go brrr“ went viral because it’s true. Hyperinflation will continue to plague our economic systems as long as many traditional assets do.
By design, Bitcoin is anti-inflationary – this is part of its code. But recent crashes have left many believing the opposite to be true. When Bitcoin’s price fell to $3,600 on March 12 of this year, it was the direct result of a drop in the market’s overall interest in the assets and the leverage of the longs being liquidated. Bitcoin’s many benefits are that it is an easy asset to liquidate, as it is very accessible.