Post
Topic
Board Bitcoin Discussion
Merits 1 from 1 user
Re: Why people are comfortable investing in government controlled investments
by
squatter
on 28/03/2020, 11:02:49 UTC
⭐ Merited by Kprawn (1)
Did Bitcoin get any support from governments when Stock markets plummeted lately? No, because Bitcoin is seen as the enemy.

Devaluing the dollar is supporting Bitcoin, in a way. Since the 2008 bailouts, our dollars have lost around 20% of their value vs. CPI goods. That alone is an advertisement for a currency with predictable inflation and capped money supply -- let alone after another 2008-like bailout.

We relish in the fact that Bitcoin is not supported by the injection of slow poison from these governments, because this cannot be sustained indefinitely. At some stage we will see that taxes would not be enough to save Banks and/or local economies. Companies and individuals can only pay so much taxes, until they go bankrupt.

It is only smoke & mirrors to postpone the inevitable collapse of the global economy. Will Bitcoin then be seen as a real safe haven or will it be too late? 

After the deflationary pressures from this crisis wear off over the next year or two and things return to "normal," people are going to start feeling the inflationary effects of these stimulus and bailout packages. Bitcoins will probably be seen as an attractive store of value in that context.

None of this should be expected to happen overnight. It's taken 11 years to get here. In 2017, JPMorgan analysts were calling Bitcoin the next gold. Imagine where things will be another decade from now.