The bitcoin market has so far departed from the emotional outburst that occurred in late June, when the value of the coin exceeded $ 14,000, and the mass media coverage of the crypto industry has now decreased significantly. CNBC no longer covers Bitcoin three times a day, and the number of headlines with cryptocurrencies has dropped significantly.
Nevertheless, the topic of bitcoin does not cease to be relevant in the mainstream media. Recently, Bloomberg Opinion editor and investment strategist Jarden Dillian explained why Bitcoin will grow even more than in the previous rally.
Will there be more bullran than the previous one?
In his article, Dillian explains why, in his opinion, the world needs a “system of non-state currencies” that will be centered around an asset such as bitcoin.
According to him, the philosophical aspect of government currencies has never weakened as it is now, given the huge level of debt that the fiat money system has accumulated. Indeed, the ratio of world debt to GDP reached 327%, and this is much higher than it was before the Great Recession of 2008. The US expects a crazy budget deficit of $ 1 trillion. in 2019.
Dillian writes that debts need to be fully repaid, but governments are in the process of transitioning to a model known as “modern monetary theory”, and essentially, “printing cash as much as the government needs to finance its costs.”
Such a transition, he said, provides an astronomically optimistic chance for bitcoin, because “in common sense we would not want fiat money that depreciate to such an extent.”
The analyst, mentioning such characteristics of bitcoin as decentralization, scarcity, the ability to resist censorship and privacy, concludes that “Bitcoin will see another bull market, which is much larger than the first; and its potential will finally be realized. ”
Dillian wrote :
“If you think bitcoin has a future, then the math is simple. If it has so far been accepted by only 0.5% of the population with a stock of 16 to 17 million bitcoins, the coin has a lot of room for growth, while growing recognition will inevitably lead to an increase in value. ”
Dillian is not the only author of the Bloomberg Opinion, which points to the rapidly growing fundamental need for bitcoin. The American economist Tyler Cowen relatively recently decided to abandon his previous belief that “Bitcoin costs as much as its marketing”, that it has too big problems due to volatility, etc.
Back in 2017, Cowen first wrote in the Bloomberg Opinion column that Bitcoin can be used as a good way to hedge wealth, also comparing cryptocurrency with gold.
In a recent article, Cowen outlined four factors that, in his opinion, give Bitcoin tremendous resilience in modern society:
- The trade war between the US and China, pushing Chinese investors to invest in bitcoins;
- The left political climate in the USA, which may lead investors to keep their values away from the eyes of authorities (in particular, from the IRS);
- Launch of Libra , which will improve the survival of cryptocurrencies;
- The desire to protect funds in cases of uncertainty.
Publication date 10/05/2019
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