President Donald Trump recently tweeted about Bitcoin: “I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National…and International. We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!”
I couldn’t agree more. For those who you think that Bitcoin is real money and fiat is scam, then you’re completely one sided and misinformed. Inflation has its own pros and cons, people try to argue that the current system is evil or corrupted, but this same system has sustain for more than 100 years, so Bitcoin can’t replace its reliability in just few years.
I do believe that we would have a better alternative than fiat in near future, but for now the current banking system and governments won’t allow for a parallel economy or currency, so Bitcoin will not be allow to be used as a money because we already have a legal and more sustainable system.
Chart-wise, there are people screaming that Bitcoin is heading to $40,000, $100,000, $200,000… I do not see Bitcoin heading this direction in the next couple of years, but instead, to $1,000. As always, invest responsibility and manage your risks.
Disclosure: I do not hold any Bitcoin or cryptocurrencies.