Keep Your Bitcoins: Central Bankers' Bubble Will Burst Very Soon
Like the Dot-com and housing bubbles, Central Bankers’ bubble is to break very soon.
Like the Dot-com and housing bubbles, Central Bankers’ bubble is presumed to break very soon. Once it does, independent currencies like Bitcoin will surge in value in high demanding markets.
The value of Bitcoin as an independent currency solely depends on its market demand and is created at a fixed rate which was cryptographically and mathematically set amid its launch in 2009. The US and the majority of the world’s monetary systems are based on debt, as the printing of fiat money relies on the level of debt a country deals with.
The fundamental concept behind quantitative easing or printing of cash is that it would bloat the economy by injecting money into its markets. What actually ends up happening is billions of dollars are distributed to the top-tier of an economy, which fails to be absorbed by the rest. Such inefficient and illogical debt-based monetary system leads to higher inflation rates and increased possibility of bankruptcy.
Bitcoin is designed to break this abused and corrupt monetary systems in the US and other regions. A decentralized network like Bitcoin or alternative cryptocurrencies like Monero that depends on its independent monetary structure and systems eradicates the main source of a central bank and government’s monetary power.
If and when mainstream users begin to migrate to independent monetary systems and financial networks like Bitcoin, the severely overvalued rate of cash will be exposed, stocks and bonds will crash, putting an inevitable end to central banks.
Impact on Bitcoin
Once cash loses its merits and value, mainstream users and businesses will be in search for alternative currencies of better value. Obviously, precious metals like gold are extremely inefficient forms of money. The majority will look into highly liquid, secure, and fast financial networks like Bitcoin, that grant users complete control over their money.
Without the power to create more money or inflate the economy, the debt-based economy of countries will have to come to an end. Anything of value, from bonds to stocks, will be revalued, which will overhaul the world economy.
Cryptocurrencies like Bitcoin will surge to all time highs, possibly into the $100,000 region, as Wall Street analysts and financial experts have stated over the years.