2020 Crypto Rush Serves As a Warning To Money Printers

0

Last Updated on 23 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
View all posts

Although Bitcoin has once again failed to break the illusive $20,000 level, few analysts doubt that it eventually will do so, probably before the end of the year. This is because by now most market commentators start to realize that there has been a rush on crypto by institutional investors who realize that they need to spread their inflation hedge.

Gold’s value has not moved extraordinarily this year but the rush into cryptocurrencies, certainly noticeable in the fall of 2020, seems directly linked to the overtime work that is being done by government money printers everywhere in the western world, and most particularly in the US.

Tech-savvy people like Silicon Valley companies (PayPal and Square come to mind) are not likely to stop looking for alternatives to store their profits and protect them from inflation. Although governments are noticing this change and thus threaten to regulate the digital currency boom that they are seeing taking place, for the next years to come it will be hard to stop the revolution.

Advertentie.

Dollar hegemony

The run of the US dollar as the world’s preferred currency seems to be coming to an end with the rise of China and Europe. This will even be more true when economists start to realize how current US President Donald Trump was able to get the Dow Jones to cross that 30,000 point mark, the illusive point some thought would never be reached.

The only reason it is there now, is because of money printing, tax cuts and a widening debt level for the world’s greatest economy. In its quest to hold off China as the world’s biggest economy for just a few more years, the Republican White House has lifted government borrowing to levels unseen.

If you also take into account that most crypto in the US is held by the younger generation whilst the baby boomers hold nearly none, you come to understand that an enormous wall of money and investors is still sitting on the sidelines. When the pandemic ends, and Gen Z will be able to tell their friends in person about their 2020 crypto investments, expect more entrants into the market. 2021 is starting to look like a very good year for crypto, and a very bad one for money printers.

leungchopan / Depositphotos.com