Bloomberg may have the best possible Argument for Bitcoin to be delivered. In an article in the Mainstream news channels, the author points out that governments, trillions of pumping dollars in the market to solve the Coronavirus is a Problem. But the result is that the confidence in currencies is generally shaken in the population.
“Whatever is necessary”
As in the Bloomberg contribution is highlighted, it will cost the governments committed to “do everything necessary”, “a lot of money”. This is extremely worrying, as it shows how meaningless money is, and people now Think. If the Federal Reserve, as a proxy for Bank care of any kind of Central in the world, just trillions of dollars out of Nothing can create, why you can’t print money to pay for other things, such as taxes and health.
Already before the crisis of 2008/2009, Bloomberg had found out that 12 major economies, including China, the USA, the Eurozone and Japan, already “more than doubled” to have and to amazing 80tn dollars. They point out:
These Numbers are so large that they have no meaning; they are merely abstractions. It’s been some time since you have been thinking about the concept of money and its purpose.
This is the crucial point, and sounds very much like something that would say Warren Buffet on Bitcoin:
The Dollar has no real intrinsic value, supported only by the full faith and credit of the U.S. government.
There will be a Hyperinflation?
There’s no simple answer, since we are currently still in the crisis. Nobody is not going to be develop quite sure how things are, although the prospects are not exactly rosy.
It is hard to imagine that a superpower like the USA or other industrialized nation on a Hyperinflation such as Venezuela or Argentina will experience. Such a sobering scenario, however, is not totally excluded. To many the circulation of Fiat money and finally reduce only their own purchasing power, therefore, it is not surprising that more and more private individuals are investing in Bitcoin. The senior Economist at the crypto project’s SOV Peter Dittus said:
I think the current Situation has slashed the bubble, basically, it could be something else, but now the governments follow up with further action. I don’t think, in the current Situation, there is really a great selection. The Interesting thing will be to see how we come out of the crisis.
He further explains that it was after the last crisis there has been an enormous increase in the quantity of money that is then invested in assets (real estate) and in other areas.
You have not subtracted the Stimulus, there was always more and now there is a huge amount more, and the question is, what happens at the end of this crisis. You will reduce it, or will we see something like payment defaults in a big way, or there will be a significant Inflation…
Bloomberg points indirectly to the fact that the best arguments in favour of crypto-currencies available:
The three main functions of a currency as a unit of account, as a medium of exchange and as a store of value.