Deflation Is Coming. Will It KILL Bitcoin? (Bull Run Over?)
Weve already seen inflation this year hit 5.4 percent based on the consumer price index, but most experts agree. The real inflation is much higher. Bitcoin has been making a name for itself as a store of value, a hedge against inflation, but the narrative appears to be changing. The elites know that the inflation bubble is going to jeopardize the power of the dollar as a world reserve currency and are talking about making policy changes to bring about deflation. So if inflation was good for bitcoin is deflation bad for bitcoin lets get it welcome to bitboy crypto home of the bitsquat, the largest and greatest crypto community in all the interwebs, my name is ben everyday. On this channel, i show you how to make money in crypto. If you like money and crypto, be sure to hit that subscribe button in this video, we look at the effect deflation could have on bitcoin. Inflation has made the dollar less valuable. In fact, the dollar has lost over 90 of its purchasing power since it became a fiat currency in 1933, when fdr took the dollar off of the gold standard. Combine that with the insane wages stagnation has been happening over the last 40 years. You start to see how the middle class of the u.s has been squeezed out of most of the wealth creation, but the value of the dollar hasnt even seen its biggest drop yet thats coming very soon. The money printing that happened in 2020 was staggering.
Federal reserve printed more money than has ever existed in the united states in a span of less than 10 years. All this started happening during the early years of bitcoin in the past few years has shaped bitcoins narrative for being digital cash, to becoming a store of value against the rapidly inflating dollar. Bitcoin is, as michael saylor likes to point out the apex property of the human race check out my interview with mr laser eyes himself by clicking above, i think, bitcoins value is in being a store of value and not in being a currency. Itll make all of crypto better as digital gold, instead of being digital dollars, but if theres a change to the nature of the dollar, if deflation were to set in, would that spell the end of bitcoin and the rest of the crypto verse? The dollar were to gain in value. Would that make bitcoin less valuable? Well, lets dig into it, but you know what is valuable, no matter what being in the bit squad smash that like and subscribe button to squad up and stay in the know with the largest crypto community on the interwebs. So lets start simple here. So what is deflation? Deflation in an economy is when consumer prices decrease and purchasing power increases. This can be caused by several factors like an increase in productivity, a decrease in demand or a decrease in the volume of credit in an economy. While that sounds like a good thing, this usually leads to severe economic downturns, but why most of the global economy runs like a market economy and market economies have stock markets.
The stock market in the us is highly influential in the overall health of the economy, since it is tied to so many things that hold value, not just stocks, but mutual funds iras so on. So if a currency is deflating or increasing in value, that means youll gain more value by saving it. Instead of spending it, this discourages making investments in the stock market, and so stock markets will go into a downturn and pull the rest of the economy down with it. This isnt always the case, but its a trend, an asset like gold or bitcoin, the deflationary in that their purchasing power goes up over time, mostly due to their intrinsic value and limited supply. This is rarity gold and bitcoin become more rare, whereas cheap things like pine needles, chicken nuggets or usb cables are very common. If you print a trillion dollars in a few months, those dollars you had before then well, they arent worth as much after, but wait and the value of the dollar starts going up. Will things start to get more expensive? Well, yes, and no consumer prices will go down, but things like credit will become very expensive, so is that it been is crypto over. Should we go all in on the dollar, not by a long shot? Evaluation is going to be kicking off just as the bull market is finishing up later this year, when that happens and youve been taking profits along the way like a good degen, then youre going to be set up for bear market accumulation on steroids.
All crypto will be correcting about 80 off their tops in the bull market and will settle down into their bear market zones around this time next year. Bitcoin will be hovering around 18 or 14 000 and ethereum could drop as low as 200, but thats with current dollar values. Prices of all assets, not just crypto, will be depressed, as the value of the dollar goes up, so bitcoin could go even lower, but dont take a hammer to your ledger. Just yet remember your bull market gains are going to be increasing over time, allowing you to accumulate more crypto during the bear market than has ever been possible from a dollar value perspective. Think about it. The dollar has been losing value for as long as most of us have been alive, but now the dollar will do something it hasnt done in 40 years gain in value. Your dollars from 2018 will have more purchasing power. Now, during the crypto bear market, things will look grim scary, but it wont be anything compared to the stock market. Thats going to be a bloodbath, all the cheap debt will be gone and the whole house of cards will be falling apart, but your portfolio will be solid and there will be an ace in your sleeve to boot. Stable coin, staking your stable coin of choice. Thats sitting in celsius, making 4 6 or 12 a year in interest, will be turbocharged as the value of the dollar increases head on over to bitboycribber.
comdeals. To get set up with celsius, make sure you can get your bear market gains up. The bear market will time out with this deflationary period perfectly, since most crypto bear markets last two to three years, the same as most deflation cycles so make sure to be accumulating. Bitcoin, ethereum, cardano and other top 20 coins. During this time and down the road, when the bulls come back after the next bitcoin having in 2024 youre going to be set up for life, changing gains, bitcoin will be breaking 250k, ethereum can hit 40k, a guardiano will be pushing 30 or more thats.