Central banker indiscriminate easy money policies has flooded the world with fiat money with Federal debts held by pubic equivalent to world war 2 levels . We are in the midst of the largest monetary experiment in human history, with no foreseeable end. Governments worldwide are adopting quantitative easing policies while simultaneously running progressively larger deficits on top of increasingly untenable debt levels. Considering that 25% of all US dollars ever created were made in 2020, bitcoin could also act as an insurance policy against monetary and fiscal irresponsibility from central banks.
Bitcoin's reflexivity
In the past institutions couldn't buy bitcoin . Today bitcoins is a viable investment asset class with liquidity, a regulatory framework, established exchanges and its market cap.
Stanley Druckenmiller and Paul Tudor have both invested in cryptos and they highlighted its potential as a hedge against inflation
An increasing number of reputable firms and respected investors have acknowledged and purchased bitcoin, lowering the career risk for investment managers who want to incorporate the cryptocurrency into their professional portfolios. US market regulators are also opening up to the concept of institutional money flowing into bitcoin. In addition, central bank digital currencies will naturally push people towards further acceptance of digital value accrual.
At the time of writing, Ethereum continue to scale new high on track to my 1800 target and Bitcoin should test 39700 resistance before attempting for its ATH at 42K.
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All posts and charts are for educational and illustration purposes only
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