Bitcoin continues to trade in a pretty tight range between $30,000 and $35,000. There’s a possibility that it could drop to the $20,000 range, but I don’t see it going much lower than that. Of course, anything can happen with crypto.
Regardless, I remain certain that the fundamental bull case for bitcoin is stronger than ever. It should be clear to everyone by now how the Federal Reserve and federal government plan to deal with our debt problem (inflation).
But it’s apparently not clear to everyone yet. Lots of people still believe that the Fed is going to tighten up, raise rates and lessen quantitative easing in 2023. This is laughable to me. It may try briefly, watch the stock market tank, then quickly reverse course.
But we’re not going back to normal interest rates of 3% to 5% anytime in the next five to 10 years. There’s just too much debt. We have to “erase” some of it with sustained inflation first.
The Fed will bluff and bluster, but it really doesn’t have much of a choice. I’m pretty sure we’ll see universal basic income, modern monetary theory and a lot of deficit spending over the next decade. I don’t even think it will be that bad, if we invest the newly printed money well. If, however, we waste the majority of our government spending, it could be a rough ride.
We must push for this newly printed money to be spent wisely. Giving cash directly to individuals is one of the better options, and I suspect we’ll see a lot of that going forward. Some will gamble it on Robinhood, but some will start new businesses or other ventures.
As this inflation-filled future continues to develop, I’m also watching the DeFi (decentralized finance) space very closely. There are some truly interesting applications, but a lot of dodgy stuff too. A lot of these “high yield” coins seem to be total scams. But there will be a few gems with real-world uses, and I’m researching to find them. But prices are pretty ridiculous at the moment, so we may have to wait for a serious crash before they look reasonable again.
Have a great weekend, everyone.