The Economy is Deflating, indebted entities and individuals need government stimulus Bitcoin drops below $30,000USD – June 22, 2021,
Most people priced in the Chinese Communist Party eventually banning Bitcoin, only an idiot who doesn’t understand socialism and communism would assume that the Chinese government who on learning of the success of Bitcoin would launch their own CENTRALIZED digital token wouldn’t eventually ban Bitcoin in China.
Russia has long begun a destination for bitcoin miners who long saw the writing on the wall with China. The real problem Bitcoin in general is going to have are energy-related costs. When Joe Biden won the election it really opened my eyes to how stupid many of these Bitcoin influencers were.
Joe Biden ran on a Green agenda, which obviously would be a negative for Bitcoin. Even these new green credit schemes that will soon become the norm in the Western world come at a cost that requires a private entity to be cash-flow positive.
Bitcoin is heavily reliant on price appreciation and if the price of Bitcoin doesn’t rise, the entire network could find itself underwater as maintenance costs in relation to the network no longer become profitable for all parties involved. China although providing cheap energy prices for miners wasn’t the problem as I like to point out a lot of people involved in cryptocurrencies went into debt in order to get involved.
What most people forget about economic deflation is that if you’re going into debt, your business must be CASH FLOW POSITIVE. A lot of the people INCLUDING THE MINERS who went into debt for Bitcoin are heavily reliant on price appreciation. There model is not cash flow positive and never will be, this is one of the reasons the experts in Bitcoin annoy me so much is that they make it appears that the price inflation Bitcoin is guaranteed, wen it’s not.
As I like to point out, Bitcoin is heavily reliant on the U.S dollar, and Joe Bidens, borrow, tax, spend and regulate economics plan is deflationary and will require a lot of central bank money printing. But retail banks are private and can go bankrupt or be NATIONALIZED if they’re insolvent.
So currently the U.S consumer, which most of the world under this current fiat system is heavily reliant on is brake without government stimulus. Not only are many U.S consumers broke, but they’re in debt and the cost of living in the U.S is rising.
So even in the event, Joe Biden sends out more stimulus checks, those checks are going to buy fewer things which also means fewer Americans are going to have the money to bet on Bitcoin price appreciation. People have to understand and remember that the Bitcoin rally began when Donald Trump sent Americans free checks in the mail.
No, the difference between Donald Trump and Joe Biden is that Donald Trump cut regulations on private businesses, Donald Trump lowered taxes, the U.S worker had more money under Donald Trump and the energy prices were a lot less. Joe Biden is doing everything in reverse, which makes the cost of living higher and paying off or servicing existing debts more of a priority.
I have been saying that I thought Bitcoin was going to fall long before the Chinese Communist Party decided to crack down on Bitcoin, I thought this would have been obvious to everyone. But anyway ignorance is bliss. In closing, I want to hammer home the point that most people used DEBT TO BUY BITCOIN.
Even Michael J. Saylor wants to use other people’s money(OPM) to buy more Bitcoin! If you haven’t woken up to what’s going on, consider doing some UNBIASED independent research!
Interesting times ahead
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