How would you feel if you knew Bitcoin was going to win no matter what?
Pretty good right?
Well, if you think about the way things are going right now with Central Banks around the world it seems very likely that it will win no matter what.
The only way it doesn't is if countries band together and outlaw it, which is a possibility actually.
Anyways, back to my point...
Right now we have central banks around the world printing more and more fiat to try and keep us out of a global recession, the worse things get the more they will print.
Right now, the impact of what they are doing isn't really being felt, in fact as I type the dollar has been strengthening which is exactly the opposite of what we SHOULD be seeing happening if the stimulus was working...
IE, the money printing should be stimulating economic activity, but it isn't, at least not yet.
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Instead the dollar keeps getting stronger and stronger as the need to hoard dollars outweighs the increasing supply.
What happens next?
Well, the FED and other central banks have already shown and told us that this is their playbook.
They will keep printing and throwing liquidity at the problems until they go away.
It has sort of worked so far, so why not keep going that route?
I mean it got us out of the Great Recession right?
The playbook remains the same, whether it works initially or not, just throw more money at it until it eventually works.
From there, either eventually it will work and the economic activity will start increasing again or they will keep doing this all the way down until the whole darn thing implodes...
Bitcoin wins either way...
Lets say economic activity eventually starts picking up again, and all the extra liquidity being pumped in the world economies "worked".
Well, in that scenario, everything priced in fiat will go up.
It's very easy to see how bitcoin benefits in this scenario as its price in dollars would go up.
The other scenario is where the extra liquidity doesn't work and they just keep pumping and pumping until eventually the whole financial system implodes and we need a re-boot.
It's happened with every other currency since the beginning of time so it will happen with the dollar and current fiat currencies eventually as well.
In that scenario things like gold and bitcoin make a lot of sense, eventually.
People will want to preserve whatever value they can as their fiat currencies implode.
So, whether it be as an inflation hedge or as a store of value or as a hedge against fiat currency implosion, there are quite a few ways bitcoin will eventually win.
The only unknown is how governments will respond to all of this when it inevitably starts happening....
Stay informed my friends.
-Doc
Do you really not think that crypto hasn't been a government agency experiment from the very beginning?
An experiment in the way to usher in a one world, totally traceable,electronic currency - and thus very controlling(socialist economics) in it's ethos...
I dont think so. The decentralization is not something government would accept except for cryptos like ripple . I really dont think bitcoin is a government inspired project.
The pretense of decentralization s not the same as decentralization (steem?lol).
And governments are expert at pretending...
This is the most informative and revealing post of the day. I don't know about economics and all but with this post i can say bitcoin is the best bet just because it is decentralized ... Thanks for the info...very enlightening post @jcornel.. resteeming immediately
The effect of printing of more money in the economy is not felt due to the pandemic and yet inflation is not affecting the economy. However,it is the only option the government have to avoid recession in the economy and yet,dollar is getting stronger. I can imagine if things kick in shape, and bitcoin is still increasing in value during this period, i guess prices will definitely increase.
Not really.
A lot of countries are openly supportive to it. If they all come together and try to ban it, or individually try to do so, it will always lead to debates. They don't want to risk that and shoot themselves in the foot.
The reality is that the banking industry has become a part of the tech industry and as tech evolves, new forms of currencies are bound to evolve. It is bound to become obsolete, so Bitcoin wins.
While I do think you are most likely correct, I don't think it means that it isn't a possibility. It may not be a strong possibility, but it still is one. To be honest, if the US and Donald Trump made it illegal to own or transact in bitcoin tomorrow, it would do a ton of damage, not kill it of course, but it would crash the price to levels not seen in years... and all it would take is a couple other big countries doing the same and bitcoin would be relegated to the underground as a niche currency probably never again reaching the valuations it's currently trading at today.
See. Not being a fan lead to discussions. What will a ban do?
There are a lot of people who have put in their money in cryptocurrencies though they don't understand it. They will also ask questions if they lose their money. In doing so, will have to understand more about everything and that includes the banking system.
It would do a ton of damage to Bitcoin? IDK, but it would most certainly do a ton of damage to the banking industry. Meet any american and ask about his life. He or She will tell you how many credit card payments he or she has to make. Why do they have so much debt?
People in America anyway hate the banking system, especially, since 2008 crashdown. If everybody starts asking questions, that will be a nightmare & that's what's going to happen if they try to ban it completely.
If they could do it, they would've done it. Why haven't they done it?
It hasn't been a real threat to the supremacy of the USD, at least not yet. If it gets to the point that it is, they will try to ban it. Bitcoin needs to keep itself in the digital gold category. As soon as it starts threatening the dollar, it will face a ton of backlash.