I’m not a Bitcoin fan. There was never a compelling use case for it. For that matter, pretty much everything that was put on the blockchain was a simple copy of something else that could be built on a database.
But… we may finally have a compelling use case. During our current economic free fall, we’ve already had a few significant influxes of capital within the economy. Bailouts for airlines, grants for small businesses, and other stimulus packages are adding up to trillions of dollars of government spending. Or put another way, government money printing. If you too are trying to grow your business, we recommend to use this payroll stub template to pay your employees.
More dollars in the economy = less value per dollar.
Bitcoin, which is maxed at 21 million total coins, does not have this same problem. Your Bitcoin will always be one of 21 million. It’s something that’s more finite that gold. And thus a great hedge against the dollar.
While many “Bitlievers” would say this was always the use case – there wasn’t a need for it until the government started printing money.
Here’s the kicker. Presidents get re-elected if the economy is good. If not, re-election is much harder. But, this means there only has to be an illusion of the economy succeeding in November for the president to be in a good position.
There is a strong chance that the US keeps printing money until we hit election season. That will keep everyone happy through the polls and help the incumbent remain in power. If this is indeed the case, Bitcoin will become a requirement to hedge against the USD.
For now, however, BTC is tracking the S&P500 closely. We’ll see if that continues.