Because You Need It
Capital Thinking · Issue #792 · View online
“Why won’t bitcoin die?” is a common question I’ve heard asked throughout the years by people sitting on the sidelines watching the bitcoin price hectically rise and fall, time and time again.
The mainstream media will tell you that bitcoin is a speculative bubble, your financial advisor will tell you that you’re wasting your time by investing in it, your friends and family will tell you that it’s a scam and economists will tell you that it won’t work.
So, why is bitcoin consistently rising in price and proving them all wrong? If bitcoin really is everything that these people say it is, then why won’t it just die already?
Why Won’t Bitcoin Die? Because You Need It
Nik Hoffman | BitCoin Magazine:
Many people in developed countries see bitcoin as an investment opportunity, thinking “I’ll buy low here, and sell high here” in the hopes of purchasing a good or service that they wish to acquire. We also aim to increase our net worth and improve our quality of life, earn a higher social status, provide value, etc.
But many people in the first world have not yet had to learn about the frightening reasons why bitcoin is needed in the first place, but that is changing.
People in developing countries see Bitcoin in an entirely different light.They’re not buying bitcoin in the hopes of purchasing a 10-bedroom mansion in Los Angeles, they’re not buying bitcoin in the hopes of owning a Lamborghini, they’re buying bitcoin because they need it to survive.
In third-world countries where the national currency is being printed into oblivion, those countries’ citizens are seeing their life savings vanish right before their eyes.
I remember giving a speech at my college during my freshman year (I went to school in the United States) on what’s better: fiat currency or bitcoin.
One argument I made is that fiat’s hyperinflation tendencies lead to a 100 percent guaranteed result of wealth evaporation.
I showed the video below, featuring a chart with multiple national fiat currencies and demonstrating how the Venezuela bolivar was completely destroyed in a small window of time.
It’s very ironic to hear bitcoin critics when they claim that “bitcoin can go to $0” when their own national currency is the one that’s going to zero in terms of purchasing power.
Photo credit: Bermix Studio on Unsplash
Well, you have to admit - his lips are moving
At this point in my career, few things surprise me.I’ve seen the housing boom, the Great Financial Crisis, the E.U. debt crisis, bail-ins, bail-outs, Fed chairs lying to congress, BREXIT, and President Trump.
However, what Fed Chair Jerome Powell said this week made my jaw hit the floor.
-Graham Summers
Jerome Powell is Lying and We Will All Pay For It
Graham Summers | BY PHOENIX CAPITAL RESEARCH:
In his testimony to Congress, Fed Chair Jerome Powell stated:It may take three years for inflation to hit the Fed’s goal of 2%.
Three years, as in inflation won’t hit 2% until 2024.
Bear in mind, inflation, today, right now, is well over that. Bond yields which trade based on inflation have more than doubled since August.
Gasoline prices are up over 70% since November. Lumber prices are up 52% over the same time period. Copper is up 33%.
Heck, the ENTIRE commodities complex as measured by the Commodity Research Bureau’s index is up 26%!
There is no sign of this stopping. Indeed, as Bill King notes, on the very day in which Fed Chair Powell was making these insane claims, gasoline surged 2%, oil surged 2.5%, copper rallied 3% and bonds collapsed.
This is akin got the financial system SCREAMING “INFLATION IS HERE!” in Powell’s ear. And he claims we won’t even hit inflation of 2% until 2024.
This is total insanity. And it is going to end horribly.