Nonetheless, the economist might be the only one who is not concerned about the significant amount of cash that has been put in circulation over the past year.
Some of the most prominent firms in the U.S., such as Tesla, Square, and TIME Magazine, are quickly liquidating their cash reserves over fears that they may soon be worthless. These institutions have opted to include Bitcoin in their balance sheets instead since this is the only deflationary asset in the world.
The truth of the matter is that the pandemic may have created the conditions for a paradigm shift in the global financial system.
Think about it. When companies like Bloomberg, JP Morgan, and Goldman Sachs suggest that Bitcoin would replace gold as the global digital-reserve asset, what’s left for us peasants to believe about the U.S. dollar or the precious metal? If Tesla is converting its cash reserves into Bitcoin, why shouldn’t we try to prevent our saving accounts from melting away?
Institutions are currently trying to avoid the risks of missing out on the potential for Bitcoin to become the global benchmark digital asset. Such a bold move should be replicated across the board by retail investors. It is time to view BTC not as a risky asset but as a potential solution to the chaos that COVID has left in the global economies.
It is worth noting that the pioneer cryptocurrency has built a price floor between $40,000 and $50,000, marked by the entry of many institutional investors into the space. While more institutional capital floods the crypto market, many technical, fundamental, and on-chain factors forecast BTC will rise above $300,000.
In the meantime, your saving account is slowly being consumed by inflation. So don’t you think it’s time to pay attention to what institutional investors are doing and buy yourself a way out of the global financial system by allocating some of your capital in Bitcoin?