The recession vs. Bitcoin
Ok, let's save some time and distill the first third of this linked article into two sentences...
It looks like 1/3 of all global economies are about to enter a recession.
Bitcoin is still seen as a high risk asset, and high risk assets don't do well in recessions.
(Look at that! We're making great time here, people.)
Which is great, because the most interesting nugget of wisdom is buried in a video, at the bottom of the article - and its worth digging into.
Dylan LeClair notes that:
US stocks and bonds have only drawn down 20%, three times in history (1931, 1969, and now). In the past, this has seen the US gov. default on its debts.
The first time, the government confiscated everyone's gold, to pay back what it owed (yikes!).
The second time, they removed gold from the monetary system all together.
For those of you playing at home, paper money used to be backed by gold.
Without that requirement, it meant the government could print as much cash as it wanted to pay back its debts - which damaged everyone's buying power (i.e. $1 didn't buy as much as it used to).
This time around, that option isn't there...so when it comes time for the US to pay its debts, they're going to have to print a STUPID amount of money.
Which will make everyone's dollars less valuable.
So where will people (specifically: big dogs with deep pockets) put their money, to maintain their wealth?
Dylan thinks a percentage of this collective global wealth will be put into Bitcoin.
(And even a .5% allocation could see Bitcoin's price 10x from current levels)
