In these uncertain times, there seems to be little to be cheerful about. But as global chaos and social distancing are the order of the day, now, more than ever, you should be thankful you’re HODLing bitcoin. Here are five reasons why.
1. Bitcoin Avoids the Great Devaluation
Perhaps one of the most curious things about the whole coronavirus pandemic is that no one seems to be asking where all this magic government money is coming from.
This is genius https://t.co/J2zShBUH9H pic.twitter.com/gSaEl8ZZDW
— ₿it₿it (@BitBitCrypto) March 19, 2020
The FT reported on Wednesday:
Andrew Bailey, the new Bank of England governor, said on Wednesday that the UK central bank was willing to pump unlimited quantities of money into the economy via its new commercial paper facility to help fight the effects of the coronavirus — and would go further if requested to by the government.
As central banks scramble to throw cash at the problem, what will be left? A mass devaluation of global currencies followed by widespread inflation and a reduction in purchasing power. Bitcoin has a fixed supply. It will never lose its value and only appreciate over time.
Trillions of stimulus…
$1.5T in Repo
$1.1T Commercial paper relief
$1T in US fiscal stimulus
$750B QE from ECB
$600B QE from the Fed
$600B bank loan guarantee (France/UK)
$500B in loans (Germany)
$300B in Japanese stimulus (proposed)
$100B in fiscal stimulus across Europe— THE LONG VIEW
(@HayekAndKeynes) March 19, 2020
2. The Bitcoin Halving Is Coming Up
OK, so we may have been more bullish about the Bitcoin Halving last month when the price was above $10k. Currently, the halving looks a bit like a double-edged sword. If prices don’t improve we’re likely to see a shakeout of the smaller Bitcoin miners in the short-term, but keep your eyes on the prize here.
Fundstrat’s Thomas Lee thinks BTC will end the year at $40k. Max Keiser sees $400K on the near-horizon. And remember our guestimate of BTC price 12-18 months after the halving? It’s quite possible that it will reach above $70k based on previous halvings. Keep that in mind during the temporary carnage across global markets.
3. No One Can Take Your Bitcoin
Many people have learned the hard way as their banking institution freezes their account or goes under. Provided you follow the correct storage procedures and store your crypto away from exchanges, you own your bitcoin. With your funds held in cold storage, no one can take it from you or impose a limit on how much you can transact – unlike Bank of America branches terrified of a bank run and reducing cash withdrawals right now
Bank of America is limiting cash withdrawals to $3,000. Expect that number to drop over the next few days.
— Tatiana Koffman
(@tatianakoffman) March 16, 2020
Just as no central banker can suddenly decide to erode your bitcoin’s value by printing more at will, no central authority can seize your bitcoin either.
4. If You Own Just 0.28 BTC You’re in the Top 1%
Remember, Bitcoin is a long game. As fiat currency looks on the brink of collapse and more and more people open their eyes to the reality that emerges after this crisis, BTC will prove its worth as the ultimate sound money of our times. Globally accessible, permissionless, and scarce.
When that happens, if you own 0.28 Bitcoin, only 1% of the world will ever be able to own more than you. That means you’ll be among the 1% richest in bitcoin terms.
5. BTC Just Decoupled from the Stock Market
No market (not even gold) has been spared from the brutal sell-off lately and bitcoin was no exception. Whether this is the real deal or not remains to be seen but you have to admit–with bad news all around right now, a 20% BTC pump in 24 hours should at least give you something to smile about.
Why are you glad to be a Bitcoin hodler right now? Let us know in the comments below!
Images via Shutterstock, Twitter @tatianakoffman @HayekAndKeynes @BitBitCrypto