In the words of the great Mugato Bitcoin is very hot now very hot now but what is going on? Who set the fire? Oh my gosh and you're too late to join Fear not, you found School a block And yes, we have a fire extinguisher answers? Is there anyone?
Welcome? In our last episode, we gave you information about cryptocurrencies, and despite the differences between all of them, each of these currencies follows the lead of the most powerful cryptocurrency of them all, Bitcoin, and 2021 was like the perfect storm for Godzilla. users receive to mine blocks in half an event creatively known as halving this means less bitcoins are released into the market now it takes time for the market itself to absorb this information but usually after six months the price starts to go up and then explodes it's a simple economy when the demand is Greater than supply, price increases, that happened in 2013, and in 2017 people expected history to repeat itself in 2021, and it did.
It's a tough day, but this time is different too because when it comes to what creates demand there's a whole bunch of new drivers and they all emerge from exactly the right point of view. The cycle to make bitcoin price action a powder keg to a bomb we can do better than this how to make george bush senior and ceo of google sorry sorry the number one driver is the demographic millennials and whatnot they're all over the digital currency it makes perfect sense to them they understand They hardly know traditional cash, and now, 12 years after the birth of Bitcoin, they are not just consumers, but decision makers, influencers in social media businesses, and even the government.
Digital Payments And what's really the difference between tapping your card on a reader or scanning a barcode with your phone so little surprise that existing payment platforms are racing to adopt bitcoin PayPal joined the party in late 2020 and in 65 weeks of users handling nearly a trillion dollars yearly they said they would use bitcoin to make payments but the crazy thing about bitcoin is not only money in your pocket it's also the best performing asset in the world since its inception it's a store of value it's digital gold finally in 2020 we've seen former bitcoin skeptics all over the world see the light and change their tune Investment banks and hedge funds are finally relenting under pressure from their clients to include Bitcoin in their portfolios.
BlackRock, JPMorgan, Citigroup, Goldman Sachs have all come to see Bitcoin's acclaim despite the likes of Jamie Dimon previously calling it a fraud so outright and public that Citigroup has put Three hundred thousand dollars as a target price on top of Bitcoin, and this is logical, as it has gone through an unprecedented rise in value since 2009, which led to the overthrow of traditional assets such as silver and gold in the water, and the demand for these assets is increasing with the governments in the world printing money in abundance, trying to avoid an economic collapse in the face of A global, relentless pandemic has undesirable side effects and you don't need to remember your 10 years of economics to know what this is.
Yes, this inflation is not working. You have n't seen this amount of money printing in decades, and it has prompted investors around the world to invest in scarce assets to hedge against this inflation. And what's scarcer than a cryptocurrency that's algorithmically limited to a cap of just 21 million units, it's not gold they're mining more of it all the time and there's no cap on these axe-wielding guys who are higher than them this macroeconomic climate is a huge driver of money towards bitcoin and unlike 2017 This time larger institutions can actually buy. Custody cases back then stopped billion dollar purchases but not now, companies like Grayscale and Square have enabled pension funds, endowments and other institutions to have the exposure to the Bitcoin market that they need to support their portfolios and thus buy huge amounts of it directly to meet this their needs and worry about Government Regulations China Banning Bitcoin That's China
You're China The Dog Race The Last Bull Greatly absent in 2021 Governments have now worked out how to tax it and it turns out they're really keen on transparent blockchains so the regulation that has emerged has generally legitimized cryptocurrencies It has enabled large institutions in fact to be considered properly and Bitcoin in particular has a new category.
Hedge fund manager and billionaire Paul Tudor Jones considers that Bitcoin is worth far less than it should be compared to gold which is where Bitcoin sits now Isn't that cool? Hasn't Bitcoin been pumped massively in 2020, it's not like 10 times for sure it's maxed out let's look at the size of the space it currently occupies 7 trillion in bitcoin now how will this pie be redistributed in the future when new generations take over leadership positions ingredients may be on all the kitchen countertops but this pie is not in the oven yet and the truth is that millennials and beyond see bitcoin not only as digital gold it is also The reserve currency of an ecosystem that could change areas like insurance, law, real estate, and even healthcare. Bitcoin is the spearhead, the cryptocurrency space is really the precursor of digital innovation and it's all based on Bitcoin.
Remember all those shady financial products that created the global financial meltdown in 2008? credit default swaps unsecured mortgage pathetic premium bonds payment protection insurances and complex derivatives based on fantasy assets a strong mix of awful awful i think i got something stuck uh i think i got something stuck are you okay if you want your money to work out Yes, but you don't want an asset made of cheese, which will inevitably result in a lot of Hollywood movies. So cryptocurrency is the answer again. Decentralized finance. Smart contracts. And there's no cheese. This is really a brave new world and it's only in its infancy, but hey, this crypto connoisseur knows it There are still many questions I need answers to. Will Bitcoin become the preferred peer-to-peer digital cash system? How can something be called a store of value when it is so volatile? Will other faster and cheaper protocols eventually overcome the effects of the King's Network What if we suddenly find ourselves without electricity and an alien world in the future? Big questions with increasingly complex answers The last question intrigued us so much that we decided to evoke crypto apocalypse day and turn off the lights Turns out you can still send bitcoin without getting electricity but that was a struggle so stay tuned for what's coming in the next episode you're watching
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