Bitcoin | Page 17 | The Gold Forecast

Bitcoin is poised to benefit from global hyperinflation

Wednesday, July 8, 2020 - 19:59 by Joseph M. Wagner II

Bitcoin’s relatively low volatility may have a lot of traditional bulls turned off but all along we and many other analysts have said that a day would come when Bitcoin has shed its volatility. Just like a fraternity brother graduating from college would enter into the real world as a productive member of the economy, leaving its keg stands and one night stands in exchange for a career and family.

The fact that Bitcoin’s maturity to a stable and truly viable asset is furthering that evolution amidst chaos among all major markets domestic and abroad is truly fascinating. In fact, in the early onset of the pandemic in America that caused a crash in equities, precious metals as well as Bitcoin showed us how BTC was still tied to equities. But the timing of the correction as well as the correlation afterwards showed how Bitcoin had now started to trade in tandem with gold. This is more evidence that it is being perceived as a safe haven.

This is increasingly important due to the massive global relief effort through the action of central banks worldwide and the massive amounts of debt that countries are taking on will inevitably prove to devalue currencies across the globe leading to worldwide inflation. Gold is the king of protecting wealth during inflationary periods, but the up and coming heir to the thrown has to be Bitcoin.

Since we have never experienced a global period of hyperinflation other than after world war two and it is not a far stretch to say that we could easily reach WWII levels of economic and mortal devastation.

This would have a profound impact on the price of Bitcoin as well as traditional safe haven assets that will slowly be outdated. This is not to say Gold will not increase its value by leaps and bounds but simply in this new era the many advantages of Bitcoin vs gold such as, easier and cheaper to store, easier and cheaper to send or receive, easier to spend (especially in coming years, decades) will put it ahead of traditional safe haven assets. Especially in a pandemic were as physical currencies may be hosting covbid-19.

So although today’s 2.3% gain in BTC futures is welcome it is not as bullish as the fact that since the end of May we have seen BTC prices trading in a stable range from $9,000 - $10,000  currently smack dab in the middle of that range currently at $9,505.

The longer we see this stability amidst chaos across all other markets the more we can expect Bitcoin to take a bigger piece of global investing and wealth preservation.

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Previous Reports:

Tuesday, April 7, 2020 - 17:32
What we witnessed today was a round of profit taking in the U.S. dollar, gold and Bitcoin. Bitcoin futures as of 5 PM EST are trading down about 2.5% at $7,200. Even with a dip in pricing today BTC is still acting very bullish and should continue onto higher pricing. Today marks the fifth consecutive higher low for Bitcoin futures and the first open above the 21-day exponential moving average... Read more
Monday, April 6, 2020 - 18:44
Bitcoin is reacting to markets rallying today. Some of which like the U.S. indices are surprisingly all trading up over 6% at the close, I say surprisingly because I believe it is unwarranted. Experts say that the equities are responding positively to news that Europe may have passed its apex of new Covid-19 cases meaning that the new cases by day should start to decline. In the U.S. the apex is... Read more
Friday, April 3, 2020 - 17:39
  Bitcoin showed signs that it is no longer trapped inside a narrow range and has made its exit from sideways trading. Next week will likely take it to higher pricing. When it broke out of its price range of $5,700 to $6,700 yesterday when BTC futures had their first close above $6,700 since March 12th. The high on March 12th was just at $8,000 which is also were I believe BTC is headed... Read more