21 Million Bitcoins Are Key to 2020 Rally
When the mysterious Satoshi Nakamoto wrote the now legendary whitepaper (in response to the 2008 financial crisis) that described the idea behind Bitcoin, he made an intrinsic point out of the fact that it’s supply would be limited to 21 million coins only. Few mysteries about Bitcoin remain, whilst others are being answered.
The document was described by Twitter and Square CEO earlier this year as “poetry”. To be more exact, Dorsey said:
I think the Bitcoin whitepaper is one of the most seminal works of computer science in the last 20 or 30 years. It’s poetry.
But is has left the world of today with several mysteries about Bitcoin’s position in the eventful year 2020. The remaining mysteries are, as always, who is Satoshi Nakamoto and who holds the first million mined Bitcoins. Craig Wright tried to answer both those questions, but failed.
One of the solved mysteries of the year 2020 is: why is Bitcoin rising so fast? Part of the answer could lie in the fact that there are only 21 million to be had.
You may have seen various versions of the “Brrrr memes” this year, depending on the continent in which you live it would either feature Christine Lagarde (head of the ECB) or Jerome Powell (head of the Federal Reserve).
In either version, one of the two would be turning on the printers of either the Euro or the Dollar, signaling that the world’s greatest currencies were being watered down in order to save the greatest economies from going under because of the Coronavirus. Aid in the form of stimulus cheques came to the Americans directly, to the Europeans in form of bond purchasing by governments. In both cases, it resulted in money printing, additional money printing. This is a sign of inflation to come.
Funny sidenote to make is that the original “Money Printer Go Brrr” can be brought back to the Wojak character, which rose to fame during the “Orange Man Bad” era. It seems that Trump is related to crypto in many ways this year.
In any case, in order to protect yourself from the value of your money being watered down, rich families would in the past always buy more gold whenever economic distress presented itself to global economies. But gold is for the old and crypto for the new age, it is being said.
And thus even JPMorgan analyst Nikolaos Panigirtzoglou admitted that there are now signs of so called family offices of the investment bank, the branches that manage money on behalf of wealthy families, seen allocating part of their funds towards the best-known cryptocurrency.
Panigirtozoglou said to Reuters:
There is a reassessment of bitcoin about its value here as an alternative currency, as an alternative to gold.
Thanks to the insertion of Satoshi of that 21 million limit, there are now only 3 million more Bitcoins to be mined, no more and no less, and thus it is inflation free. Could that be the key to the 2020 rally? Let’s see where we end up as the year turns to 2021.