Andrew Bailey, the next governor of the Bank of England (BoE), recently joined the opposition to the Bitcoin family, along with Peter Schiff and Warren Buffett, following a recent statement about Bitcoin. The governor stated:
Bitcoin has no intrinsic value, and anyone who wants to buy it should be prepared to lose all their money.
( Image source: Tehcentral)
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However, despite the worrying performance of the foreign exchange market and the spread of the global crisis, Bitcoin is still holding its ground. That's why you should hold Bitcoin instead of government bonds.
Bitcoin's purchasing power will not be as bad as fiat
As new coronaviruses spread across the globe and global stock markets have fallen, U.S. President Donald Trump has urged the Federal Reserve to implement more quantitative easing.
Fed Chairman Jerome Powell also supports the policy, saying:
Lowering the federal benchmark interest rate is by no means quantitative easing (QE)!
We all know what happens when governments print money at will.
Federal Reserve Chairman Jerome Powell: "This is not quantitative easing, it is not quantitative easing from any perspective!"
In fact, what we are seeing now is the largest quantitative easing in human history!
In the long run, it is good for Bitcoin !! Just look at the change in the purchasing power of the US dollar over the past 100 years. If you had a $ 100 note in 1900, today it's worth about $ 3.48. The equivalent of $ 10,000 in your hand is only worth $ 348 after 100 years, and the purchasing power has fallen by 96.4%.
On the other hand, due to the inherent scarcity and limited supply of bitcoin, its purchasing power will not weaken, but will increase over time. Compared with the legal currency issued by the government, Bitcoin is a value storage method with more obvious advantages.
Since its birth, Bitcoin's return on investment has reached 90,000 times
As governments around the world are preparing for the next global recession, remember that this time you have an option worth trying. The emergence of Bitcoin is a response to the 2008 financial crisis. At that time, excessive risk-taking measures by banks caused the global economy to panic, and the government ultimately relied on taxpayer money to rescue the market.
Bitcoin was born after the last financial crisis. In the 10 years of strong performance of fiat currencies and stocks, the value of Bitcoin has increased by 90,000 times. What do you think of Bitcoin's performance in the next financial crisis? If you hold government bonds and the bank is closing, can you guarantee to take out your deposit from the bank? No one can confiscate your Bitcoin, and no one can push monetary policy to control its price.
Even if you take out 0.01% of your deposit account to buy Bitcoin, it is very likely to generate huge returns.
Faced with such data, the words of the next governor of the Bank of England will no longer be tenable. In fact, if you hold government bonds now, you are likely to "lose all your money" over time.