Bitcoin’s Perfect Storm May Be On The Horizon

First and foremost, the consideration of the growing cost of national debt in the US is a scary prospect. By 2022, the interest alone on the national debt will exceed the total tax revenue of the US government. This inversion will effectively force a revaluation of the dollar. Secondly, new economic theories like modern money theory (MMT) pose risks. They suggest that the way to deal with this debt crisis is simply to assume that the government is able to print money to offset any debt. Obviously, the issue of inflation is key — but this theory essentially ignores this fact. Finally, the governmental policy of quantitative easing (QE), or the purchasing of government assets by the central bank, also poses risks. While QE injects money directly into the economy, the infinite regression of a government buying its own debt leaves little or no foundation for the creation of economic stability.

Theres a perfect storm for BTC right now

– Democratic socialism
– MMT (Modern monopoly money theory)
– QE infinity
– 10k boomers retiring daily (entitlements skyrocketing)
– 2020 election
– US interest expense > tax receipts by 2022
– BTC halving in 2020

Never been more bullish

— Brendan Bernstein (@BMBernstein) March 29, 2019

Bitcoin and Societal Issues

While economic issues are in play, social issues are also causing a number of concerns. The coming election in 2020, for example, promises to further polarize the American populace. Additionally, the growing Democratic socialist movement, which some interpret as the expectation of entitlements and rights at the expense of the government, could be troubling. It demands payments that the US monetary system is unable to bear. With these factors in play, the reality that more than ten thousand baby boomers are retiring daily only increases these stresses. Each of these retirees will require payments and entitlements in order to maintain the standard of living they’ve grown accustomed to — and the cost to maintain these structures is enormous.

A Perfect Storm for Bitcoin

As societal and economic events come to a head, the reality that a reckoning is coming seems clear. As each of these varying forces creates pressure on the US dollar, and therefore the global currency system, the need for non-fiat currencies increases. Bitcoin (BTC), because of its distributed nature, demands autonomy from federal governments and provides a level of freedom that maintains its intrinsic value. At a time when the very concept of value is under attack, Bitcoin represents a safe haven of stability in a perfect storm. Think Bitcoin (BTC) is the answer to the economic and societal storms that are facing the US, or will other solutions come to the rescue? Let us know in the comments below!