Monday, October 25

Do we trust Bitcoin?

The combined effect of the epidemic and technology on financial markets, poltergeists of all kinds, strange phenomena that have become a horror movie for some, create opportunities for some to explore new regions.

Let’s start with the facts: Since the beginning of the pandemic, which saw a halt or sharp decline in economic activity for a large number of people, many of whom are already in a vulnerable state, the US government has already approved a staggering $ 4.1 trillion.

The money distributed in the form of government checks and economic incentives did not come from any asset sales or additional tax revenues and was simply printed. This meant that the dollar could no longer be converted into gold, but that did not stop the US from shaking occasionally. The magic money tree, which often had a huge impact on the global economy: For half a century, we trust the government’s password for what the government is now.

Without objecting to the need for aid programs to cope with the impact of the pandemic, the truth is that these led to an unprecedented expansion in the money supply: about a quarter of the dollar was in circulation in the United States. It was published last year by a country whose economy was dwindling.

Demand accelerates after months of lockdown means that a large part of the money distributed to the public is fueling booming financial markets despite recent lows. Moreover, and while it is almost muste to say this, the past few months have created record savings rates among many consumers, which could lead to a spending spree in a post-pandemic economy when it comes to efficiency. The impressive logistics of the United States in vaccination enforcement seem increasingly close to each other.

from who. Traditionally this is a possibility that could trigger an increase in demand for valuable storage items such as valuable items. However, the technology has come to its rescue with an increasingly convincing product called bitcoin, a cryptocurrency based on a fundamental principle: limited supply and already being released at a very high rate. This provides a fundamental advantage in terms of trust over traditional currencies or fixed currencies that rely on very unstable coins or baskets of assets as we have seen before.

There are more and more important players in the economy, companies like China and others;

There are more and more important players in the economy, companies like China and others; Citi

such as banks; investors or the like; or to use in Bitcoins such as insurers who have decided to take a stand, or to offer them to their customers as a critical protection against possible devaluation of the dollar. This has prompted a large number of companies to buy bitcoin, which increases the value of the cryptocurrency. Let’s see what happens if a country decides to buy bitcoin collectively.

It is very difficult to determine where the post-epidemic economy is heading, but there seems to be growing consensus that Bitcoin will play an important role in determining the direction of travel. The truth is that there are no longer truths or lies about the economy. For all intents and purposes, and especially in the post-pandemic context, bitcoin is a much more valuable asset than gold, silver, dollar or euro. Unfortunately, it is a fact that many people do not yet understand.

Do we trust Bitcoin
Do we trust Bitcoin