News all over the crypto space as we all experience lockdown shows on all the major crypto but does the helicopter money and new printed trillion of the dollar affect crypto space particularly bitcoin the first cryptocurrency?
Let's look into what inflation means then we venture into what is expected of Bitcoin this year.
Economists will say, when supply is higher than demand there is a drop in the value of what you are chasing. Looking from this perspective, the modern day's economic theory is killing the fiat value gradually and FG thinking they can make the world a better place through an increase in the supply of money to the public. Increase the supply money is a way of creating inflation because lowering the demands will always result in too much demand and thereby increase the price and value of such thing, at the moment we have too many dollars chasing after few things. Have you considered what will the trillions of dollars printed will be if converted to bitcoin? Bitcoin is limited in quantity that ends its game at 21 million which is ever been created since its launch in 2009.
Can you tell me on what basis are currencies backed before the launch of bitcoin? All currencies were fiat inflated and backed on nothing, Central Banks only raced each other to offer the lower yield and the moment the zero was not enough they settle down for negative rates and everyone starts paying to hold their savings in interest negative accounts, but for house or skyscrapers owners and those with things of value only have the opportunity to benefit from helicopter xxxxx machine and they will be the one to inflate the price of what they own. This is where the saying of rich are getting richer and poor vice versa applies.
Have you taken a moment to enter into this free money policy in this perfect environment of hyperinflation with negative interest rates? I need to reveal some hidden things at this moment:
Is Bitcoin The Virus Of Our Time?
Late last year, I have been following on Bitcoin halving shortly after I experience the halving of Litecoin although its effect its price value and many miners stop due to maintenance fee and other factors but I flashed back to 2016 when Bitcoin network experienced its second halving that resulted to increase in bitcoin price value from 1,000$ to 20,000$ and Bitcoin third halving is set to happen this year (Bitcoin halving happens every 4years). Will Bitcoin price skyrocket again?
COVID-19 placed much business on hold and in less than a month of lockdown every nation should be able to have the result of their checks and also in less than a month Bitcoin halving will occur. I must say, these two events will bring in a great deal for the crypto world as I perceive right now. About 70% of the world is on lockdown if my calculation is correct but I know the perfect time for bitcoin to rise is near. More fiat currency, many are in to keep their savings as savings because nothing to buy everywhere is on lockdown and I tell you the timing is nigh approaching for the finance supernatural.
Let me share with you some things that will happen to bitcoin during this halving:
1. The bitcoin miners will sell off their BTC to pay for new servers and their facilities in other to house their new mining machines.
2. The miners will sell their mined BTC on the OTC, hedge funds even to exchanges.
Because they are miners, they won't sell at the current price and this will result to increase in price and its value. Remember that exchanges need liquidity and I know hedge funds are looking to buy at any cost knowing that at the moment the price is cheap. In your mind you may ask will bitcoin continue to increase forever? From experience, at any top of any bitcoin cycle I buy and from my calculation when waiting for 4 years, the lowest return is 10x which means if you buy at low bitcoin cycle, you may end up with over 3000% because the more the dollar gets inflated Bitcoin will surely rise, as everyone knows, 1 Bitcoin since 2009 is always 1 Bitcoin worth, but its valuations come in when you compare with fiat currencies.
To solve an economic recession must you print new currency? How do you increase the value of such currency when the supply is more than the demand? Or is my calculation wrong?
What is the killer agent here? Bitcoin or Fiat?
Look at this conclusion,
FG helicoptering millions of dollars to the corporation in other for them not to pay tax, yet citizens and companies pay tax. Bitcoin is in-descriptive superlative because it keeps on adding a million users a day and doubling its user every year and still maintaining its total quantity 21 million Bitcoin since the beginning of its launch and the third halving set to happen. I know the real disease in finance caused by fiat will receive a cure with the introduction of Bitcoin and its adoption has started.
What do you think about the Bitcoin and its halving upcoming?