In recent years Bitcoin has experienced many falls. The most significant ones were in 2010 and 2011: from 17 cents to 1 cent and from 32 dollars to 2 dollars, respectively. Very few people remember those exciting days and, only by examining old themes on the Bitcointalk, one can sometimes be touched by the naive FUD that the then-crypto-enthusiasts were running out. But the time has passed, crypto-enthusiasts have grown up, sold Bitcoins for a 1000, bought them back for 3000, bought Lamborghinis, became passionate fans of fashion brands and stocked with patience. Imagine: Bitcoin fell two times by 94%! Correction – by 94%! And the growth of the previous ATH has always been more than 1500% (1600% in 2010 and 1504% in 2011). Based on these statistics, as well as the statistics of the following corrections, we can expect an increase in ATH with a new bull run by 200-240% (up to 38,000-40000 dollars). But what can be reinforced by a new bull market? ETF? Obviously, not.
Bitcoin today has become, perhaps, one of the basic tools for transferring large monetary assets from donor countries to recipient countries. The bulk of such transactions are in countries with strong financial regulators – such as China, South Korea, Japan and the United States. To do this, we use the existing ramified infrastructure of dozens of crypto-exchanges, exchangers and special crypto-cash machines that allow to purchase or transfer one’s assets through a cryptocurrency in a few clicks. Many countries, that are actively using cryptocurrencies already have ideas about creating national cryptocurrencies. And while China, South Korea and Japan have so far refrained from such actions (although on the sidelines there are always cryptocurrencies like EOS, NEO, NEM and ICX), countries with weak economies such as Venezuela and Iran subject to permanent economic pressure and international sanctions and accelerate the introduction of the cryptocurrency into the country’s financial system with joy. This is so because the use of such independent free assets can allow these countries to maintain their independence. Cryptocurrency is not only the ability to transfer large sums of money anonymously and almost for free – the cryptocurrency becomes the guarantor of freedom and independence.
Now it’s fashionable to wait for fateful decisions from the SEC on ETF and few people think that this is just a drop in the sea of modern finance. The sum of all estimated money (M1) in the world is a little over 36 trillion dollars, and all in all the amount (i.e. all funds in all bank accounts) has already reached an amount of 90 trillion dollars. Even the arrival of 1% of broad money in the cryptocurrency will change the game forever. But what can this contribute to? A crisis.
The total world debt is more than 233 trillion dollars. This money is not secured by anything other than promises that will never be fulfilled in view of the fall in consumer demand, systemic problems and the economic model built solely on an endless economic growth. Thus, the flow of values from the world of fiat money to the world of cryptocurrencies is only a matter of time. No one will want to stay in a sinking ship, but as in the case of the Titanic – when the small businesses were already drowning in lower decks, the first class waltzed on the upper decks completely absorbed in the illusion of stability. Crisis is the time of renewal. And a powerful catalyst for the growth of Bitcoin.
The global crisis, the crisis of the current financial system is just beginning to untwist a giant flywheel of bankruptcies that will destroy many seemingly indestructible financial institutions. And the cryptocurrency is the fresh wind of freedom that adds speed to it.
About the Author, Mike Blackwood: Since 2007 Mike has held executive positions in marketing in various Russian and international companies. Beginning in 2014, he plunged into the study of blockchain technologies and crypto-currency assets. Spheres of professional activity: digital marketing, consulting and trading.