Once upon a time, pumping more USD into the market fed the lion's appetite of BTC. This is what happened in 2020 when after printing a lot of dollars to survive the pandemic, the value of 1 BTC shot up to $69,000 in November 2021.
Today, however, the situation is reversed.
The USD, backed by USG, has figured how to milk BTC of its gains.
And by extension, the USD is now milking the entire cryptocurrency market.
What a Dollar milkshake!
Much Wow.
Bitcoin is Dropping in Value
BTC: Where is inflation, my old friend.
Bitcoin is dropping in value. Again.
It is now at $57,000.
Don't hold your breath, it could go lower.
Peter Schiff must be breathing a sigh of relief.
“Finally".
Federal Reserve Chairman Jerome Powell might for the first time be ready to control his index finger. Can't mess up a good thing so quickly.
As a Bitcoin idealist, I cannot help but feel betrayed.
Bitcoin promised us Utopia. The calculations showed that after the halving, supply would slump.
Mining corporations would get broke so they would hodl tight.
Demand would shoot up, and value would rocket up.
Jerome Powell would thereafter print and it would be glorious.
Alas. Alas.
Were they (mining companies) paid off by some fiat Kingpins to keep cool?
Ok. They have held onto a year's worth+ of coins mined at 6.25 BTC per 10minutes.
It will take a while before they feel the 3.125 BTC per 10 minutes pinch.
But they will feel it.
Which will be good for us all.
Is there a way to slow down this glum?
The truly best way to handle this is to start buying as much as possible.
But also, talking about it as much as possible might help.
What cheaper way to slow down a financial fall than to flap one's lips as hard as possible.
A closed mouth don't get to Fed.
Some powerful people may be swayed by thy words to slow this train wreck down.
See, Bitcoin's value drop is a reflection of something Big happening in the market. BTC investors are getting arrested left, right and centre;
- Samourai Wallet founders were arrested on money laundering charges.
- CZ Binance will also go to jail. For four months.
- ‘Bitcoin Jesus’ was nabbed on the cross of tax evasion.
If you lose a penny in the dark, call the IRS.
The Dollar’s Milkshakes
Obviously, obviously, investors are spooked. So they are dumping BTC faster than a hot piece of coal, and running to buy USG Bonds.
I suffice hence that +1% while most other assets taste red.
Including Tesla stock which has seen +14% just this month.
In other news, the USD has gained on the Japanese Yen too, so USD has a comfortable home in Japan if ever it needs one.
With BTC, really, a transparent ledger is its own Achilles heel. You cannot gain on BTC as capital and not file your tax returns. You will be caught.
But if these returns are due to inflationary spending of more dollars, then it means the USG just took back what it already spent!
Talk about having your cake and eating it too.
USD is one powerful predator in the financial world.
The Dollar’s Prime Rib Milkshake
Now eat the cake, Anna Mae.
Bitcoin may be volatile but if it ever got Facebook-level followers, it will be huge.
I bet the USD is counting on that.
If there is a rebound from $57,000 to $100,000 per BTC, sell of these coins by any US business will result in the most handsome capital gains tax for the USG than from any other asset.
Hence the USD wins and gets fatter.
Whoever thought the dollar will collapse did not do enough research. It is here it stay, global currency or not.
Bitcoin, hence crypto, just might save fiat from drowning. Such is the power of a good natured asset.
Love your enemies, wish good for those that persecute you.
Eventually USD will evolve to be honest fiat. Because it is standing on the shoulders of an honest currency.
Ah, if only evolution didn't take too damn long.
