Why Bitcoin from the threat of a “deflationary super-cycle” could extremely benefit

One of the main theses of Bitcoin is that it will benefit from an inflation period, while you can buy with Fiat money, over time, become less and less. The evidence of the value of scarce Assets, the Argument goes.
However, in recent weeks, the macro have changed economic prospects, and there is a serious discussion about an impending deflationary cycle came.
Deflation means that the value of your Fiat currency is increasing over time instead of decrease.
Deflation in the modern world is largely uncharted territory, but it is assumed that the asset prices in the basement plunge. Bitcoin, as analysts say, however, can be excluded from this Trend.

Deflation instead of Inflation?

In the last few weeks, the demand for goods and services has disappeared due to the worldwide prescribed closure more or less from the ground. This was due to the collapse of certain Oil markets to $ 0, or even negative, at the end of last month, clearly.
At the same time, Deflation is inevitable.
– Display
Chamath Palihapitiya – Chairman of the Board, Social Capital, and one of the earliest Bitcoin supporters in Silicon Valley – has just shared an article from the field of foreign policy, the threat of a “terminal Deflation” was mentioned.

With the Loading of the Tweets, you accept the privacy policy of Twitter.
More content, download Twitter Tweets to learn more and unlock

The article indicates that many are expecting Inflation due to the booming balance sheet of the Federal Reserve and the extensive stimulus measures – but the fact is, Deflation will follow:

“The economic history suggests that Deflation, not Inflation, is the more dangerous by far more probable – and in a way, also the determination of the current exchange rate of the US Central Bank is without unprecedented measures.”

In the article mentioned concepts are a bit long-winded, but the core idea is that the stimulation exacerbated by the Federal Reserve is actually a prosperity gap – and that means that the majority of Americans, the middle class can’t spend that much.
Also here is the main thesis around the Bitcoin investment, while the the Inflation, but a deflationary event could come from the crypto-currency seriously benefit.

A boost for Bitcoin

In an interview with Anthony Pompliano – co-founder of the crypto-Fund, Morgan Creek Digital explained Palihapitiya: If the economy is a car, then it rolls off a cliff and down a brick wall at the foot of the cliff. This means that The times are bad.

With the Loading of the Videos, you accept the privacy policy of YouTube.
Learn more Video YouTube download always unlock

In such an environment, in which a brick wall is imminent, will experience, as investors will begin to roll at the end of the car to give up and move on to something Stable around that can withstand any uncertainty.
And according to a statement by the prominent entrepreneur from the Silicon Valley, this investment looks more and more to Bitcoin.
Jeff Booth, a canadian technology entrepreneur and author of “The Price of Tomorrow”, has repeated in an Interview and emphasized that Deflation will increase the debt burden of the debtor of the world dramatically.
This will, in turn, increase the chances of a cascading series of bankruptcies and credit defaults, what will force the level of trust in the institutions is undermined and the people to look for Alternatives like Gold and Bitcoin.
– Display

Cryptocurrency Market