never has there been so much money being created out of thin air.
does this help bitcoin? or not?
some would say it helps bitcoin because its deflationary and scarse (21million bitcoin) will ever exist.
but being devil’s advocate, the banks and infinite money creators have been able to control gold’s price at the CME futures (biggest exchange in the world) JPmorgan employees caught manipulating the market & Deutsche bank caught fixing gold price.
so will all this extra cash become buying power or simply free cash to burn to surpres the market. if you have infinite printed money, that means u can take losses buying high & selling lower to control its price.
and CME futures contracts are settled in cash, not bitcoin.
on the other hand, if hyperinflation does happen, hopefully even the old money will hedge an percentage with bitcoin. Gold is good but most of the times still have to trust an entity for holding or storing it.
seems like farms, land resources, cattle and agriculture properties have become the real tangible gold in 2020.
we’ll find out after bitcoin halvening if bitcoin really become a vehicle to escape hyperinflation, or does it flow to tangible land.
the instant, liquid and no 3rd party control is a factor, but now with cash basicly dead. the digital money & banks now have more control, because cash is being canceled due to risk of contamination.
Doomsday scenario for cryptocurrencies: (this would be highly unlikely) but possible: something to keep in the back of your mind, during these strange days, if they do decide to make crypto illegal we are all screwed. there will be no cash/blackmarket to survive it. with cash becoming absolete due to contamination risk and physical transactions impossible. banks have more leverage with payment networks and funds now.
making the survival of blackmarket/cash secondary market implausible.