Why People Should Get Out Of Fiat Money and Into Bitcoin – Pantera Capital

462
Contentions Erupt After New York Fed Classifies Bitcoin As ‘Just Another Example Of Fiat Money’
Advertisement
   

Blockchain tech and cryptocurrency investment firm Pantera Capital recently released its monthly report and the punchline is that anyone who wants to protect their wealth should get out of fiat money.

“Stay long crypto until schools/daycare open. Until then the economy won’t function and money will be continuously printed.”

Since 1971 when the US took the dollar off the gold standard, the dollar has been consistently losing value, and the pandemic deficit spending is the icing on the cake that will bring the whole house of cards tumbling down.

The report highlights the magnitude of debt in the US as of June 2020:

“The United States printed more money in June than in the first two centuries after its founding. Last month, the US budget deficit-864 billion-was larger than the total debt incurred from 1776 through the end of 1979.”

Bitcoin and Gold do not Need Inflation Adjustment

The inflation will be uncontrollable because for fiat to be effective in controlling inflation, the supply of the dollar should be constant, but currently, that’s not the case:

 “That’s EXACTLY why one should get out of paper money and into Bitcoin. It isn’t being inflated away. One bitcoin, is a constant fraction of the total 21 million that will ever exist.”

With Bitcoin, there is no inflation, or hyperinflation and therefore, no need for “inflation-adjusted numbers.” Apart from Bitcoin, Gold is another scarce resource that is a good store of value, and doesn’t need inflation adjustment:

Advertisement
   

“There is no coincidence gold recently hit an all-time high. Or, said another way, paper money hit a low vs non-quantitative-easible money like gold and bitcoin.”

In agreement with this analysis, even the top Bitcoin critic Peter Schiff who ironically is a gold investor said that the dollar is not only going down, but it is “going to crash.”

“I think the dollar is going to keep drifting down until it collapses. And it is going to usher in a real economic crisis in America unlike something we’ve seen.”

Decentralized Finance Is the Future of Open Finance

DeFi has unlimited potential but its current market capitalization is too miniature inside the crypto market and practically non-existent in the traditional market. 

Over the past few months, approximately $4.0 billion has been locked inside DeFi protocols as a solid store of value. This is a result of more people leaving centralized systems to explore better opportunities through decentralized applications. 

Pantera capital stated DeFi will be crucial to realizing the vision of open finance.

“This subsector of the blockchain industry has emerged as one of the dominant use cases beyond value and speculation. (On future use cases).”


Get Daily Crypto News On Facebook | Twitter | Telegram | Instagram


DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.