Signs of Economic Deflation? The USD Fiat Price of Bitcoin Crashes more than $10,000 in 4 days – December 4, 2021,
I personally like watching the price of Bitcoin, in my personal opinion, Bitcoin is a digital fiat money play and a dream come true for people who dream of the government getting out of the markets. I personally don’t think Bitcoin represents the true value of money, nor do I believe that a central bank digital currency(CBDC) will be sustainable for a long length of time because humans are rebellious and HACKERS are too smart for the government.
If CBDC’s become a thing, I think people ignore the exciting challenge that would present to criminals, who can then focus their bank robberies on incompetent central banks being led or influenced by incompetent politicans. Governments gets hacked now, imagine if all fiat money was derived from a central source thereby either bankrupting private banks or changing the role of retail banks on the global economy.
Bitcoin and other decentralized cryptocurrencies provide us with an alternative to digital fiat dollars, but, let’s not confuse Bitcoin with money, I prefer to look at it more as a network, which because of its design evades central powers. But if let’s imagine governments merely give up on the idea of regulating cryptocurrencies, which in my opinion is a possibility, there are many other companies that would love the idea of having their own currency on their network.
Apple Inc. comes to mind when I think about networks that would probably want their own currency if it became legal. In Canada, we’ve had this thing called Canadian Tire money for a long time, I often think people too much emphasis on money, not understanding that the only reason money is centralized to begin with is that we’ve been conditioned to imagine that by the government having full control over the definition of money, the world will be richer.
The federal reserve first being created to prevent deflation now causes inflation, which humans are conditioned to imagine is a good thing? This of course makes Bitcoin very appealing as the U.S dollar price of Bitcoin dropped by $10,000 in a span of 4 days but yet is still worth $48,000 per bitcoin. Now, based on what I know, there is some manipulation obviously going on in the price, but what should be noted is how much fiat dollars people are willing to pay for a purely digital asset?
How do I see Bitcoin is that it’s one indicator to tell if the economy is deflating, because as we know, for some strange reason whenever we can clearly see Bitcoin being liquidated, we soon find some angel investors, pushing the price up again? I’ve written about this before. It’s obviously clear signs of price manipulation. So when I see the price fall to that degree, it’s a sign to me that people are running out of money.
But what you have to know about Bitcoin is that purchasing Satoshis at an INFLATED PRICE will push up the OVERALL price of Bitcoin. This is one of the reasons I tell people that eventually people are going to catch on to what’s happening. Not sure how long it will take, but eventually people will see the price manipulation for what it is. I think people forget that Bitcoin doesn’t do anything if the price of Bitcoin goes to $100,000 fiat US dollars it doesn’t matter, whereas if the Gold and Silver price jump that high you’re disrupting the entire economy, because that’s jewelry, industrial production, etc.
From an economic standpoint, people usually only sell when they’re running out of fiat money, I think people forget that fiat price inflation leads to economic DEFLATION. Nobody will claim the Venezuelan economy is becoming more robust when the Bolivar loses value. When consumer prices go up, the economy deflates, the government gets to hide economic deflation, because it has control over the money supply. Our rule by fiat monetary system along with economic statistics being framed in a manner that reflects well on the government allows the wealth effect to be realized.
The problem with the wealth effect is that most people will not know what to do when it becomes obvious that the global economy is deflating. I think when you see these large dips in Bitcoin, you’d be wise, to pay close attention to how the price of Bitcoin goes back up again. Instead of $1 for a satoshi I might be willing $3 for that exact same Satoshi, this is one of the reasons why, I don’t think CBDC’s will work, people are doing this with decentralized cryptocurrencies, imagine what will happen if there’s a centralized digital currency? Price controls you say LMAO! So money system without a market lol!
Bitcoin falls by a fifth, cryptos see $1 billion worth liquidated | reuters.com
Interesting times ahead