Bitcoin bulls have taken the charge over the weekend which pushed BTC price past key resistance of $9k and currently trading over $9,300
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Bitcoin bulls have taken the charge over the weekend which pushed BTC price past key resistance of $9k and currently trading over $9,300
Bitcoin, Crypto, and monetary policy
what separates Bitcoin (& other decentralized cryptos) from the tulip bubble is scarcity. If tulips sky rocket in price, farmers will shift to growing tulips, adding to the supply. As the price increases, more and more farmers join in growing tulips, boosting supply even more until supply surpasses demand causing a crash.
With Bitcoin there is no way that coins can be created after the supply cap of 21 million is reached. Until then we will only get 12.5 BTC (miners block reward) added to the market every ~10 minutes. This miners reward halves every 210,000 blocks. Not saying we will not have a Bitcoin crash, because you can't pay bills with Bitcoin (yet).
MEANWHILE: Trump Administration is set on bringing manufacturing jobs back to US (not a bad thing as nations need exports). In order for manufacturing jobs to turn profit via exports, a weak dollar is required. To weaken dollar, The Federal Reserve will digitally pump US Dollars into circulation. Thus, a devaluation of the your hard earned US Dollars begins.
In relating this to the tulip bubble, the US Dollar are tulips. The federal reserve are the farmers. The global economy loves the US Dollar, so there is current demand, and the federal reserve loves printing monies since 2008. However, US population is at its lowest growth rate (~0.7%) in 80 yrs (less people to have dollars).
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