OK I assume you're reading this because of the clickbaity topic 😜 Price predictions always work. The crazier the predictions, the more attention you get. I don't know about you guys but I click on it. every. single. time.
I came across this long article from Arthur Hayes (one of BitMEX's co-founders and Bitcoin billionaire) explaining why he thinks Bitcoin will hit $1,000,000.
Here's the rundown 👇
- Countries like China, Germany and Japan produce and export things more than they import, making them run a trade surplus
- In other words, they make more dollars than they consume which mean they can save!
- These countries then reinvest those large amounts of savings in low risk, low yield treasury bonds because the USD is the world's reserve currency
- That money seemed to be pretty safe, until 26th Feb 2022 when the US & EU decided to confiscate $630 billion worth of reserve of a sovereign nation - Russia
- Russia was "cancelled" and Russian banks were removed from the SWIFT network
Here's the number 1 question to ask if you're China and own ~4T in USD savings:
- Why should any central bank “save” in any Western fiat currency, when their savings can be expropriated arbitrarily and unilaterally by the operators of the digital fiat monetary networks?
- The answer is you shouldn't. You own nothing. You're merely “renting” your net worth from the entity that operates the centralised fiat digital monetary network.
What happens next?
- Those countries will start to store their asset in hard money that is recognized and accepted globally
- And that hard money is GOLD, not Bitcoin, for now
- The reason why a central bank buys gold instead of Bitcoin is solely due to historical precedent
- But you don't hold it, you don't own it. Arthur predicts that over time some central banks may be tired of shipping gold around that they would rather conduct small but rising amount of trades in a digital currency - Bitcoin
The current PetroDollar/EuroDollar monetary system has ended. It’s not gold or Bitcoin that is increasing in price, it’s a decrease in value of the fiat currency in which they are priced.