Bitcoin Will Emerge as a Response to the Crisis in Which the World Is Settling Down

Bitcoin was created for the situation we are in.

The increasingly rapid spread of the coronavirus around the world makes the future uncertain. Everyone realizes that we will have to remain confined for some time in order to stop the spread of the coronavirus.

The economies of countries will be put at a standstill by these confinements. That is a certainty. The world really became aware of this during the week of March 9, 2020.

During that week, the coronavirus really acted as a catalyst in triggering the beginning of the great economic crisis that has been expected for years now.

Everybody started to panic. This real panic caused a liquidity crisis. Everybody wants to recover as much liquidity as possible in order to prepare for the difficult times ahead.

All liquid markets have been hit hard.

So Bitcoin has not been spared from this liquidity crisis. March 12, 2020 will forever be remembered in the history of Bitcoin with Bitcoin price falling more than 50% in a few hours.

Bitcoin then saw its price go from $8K to $3.8K in total panic. For some, it was necessary to sell at any price, while for others this Bitcoin below $5K was a unique opportunity to buy more.

Wall Street was also heavily impacted. The Dow Jones, which some were expecting to exceed 30,000 points in the year 2020, even broke the 19,000 points threshold on March 19, 2020.

During these days of sharp declines, Wall Street had to halt trading on several occasions in what came close to the practices of socialism. At the same time, Bitcoin never stopped, showing that it is the only true free market in the world.

In the midst of the crisis, Bitcoin was able to demonstrate its superiority on Wall Street.

That was all it took for Wall Street traders to call on the Federal Reserve to come to the rescue. The Federal Reserve had to pull the weapon of monetary stimulus once again.

The result was a series of extraordinary emergency measures:

Cut interest rates by 100 basis points with a target of 0 to 0.25% now. Note that it had already decided a 50 basis point cut on March 3, 2020 as a matter of urgency.

Another round of quantitative easing for $700B this time. In details the Fed will buy $500B in treasuries and $200B in mortgage-backed securities.

0% reserve requirement rate for banks.

These measures will not be enough to reassure Wall Street, and to save a monetary and financial system that is increasingly showing its failings in the open.

The Federal Reserve has a lot to learn from Bitcoin. I can think of at least six major ones.

A lot of people took advantage of this period with a Bitcoin around $5K to attack it. Bitcoin would not be a safe haven in times of crisis to listen to them.

They forgot to mention that at the same time gold lost more than 10% while the precious metal has been a recognized safe haven for centuries now.

These critics of Bitcoin have forgotten that safe havens only come into action once the panic has subsided and the economic crisis has really set in. In fact, it was obviously too early to criticize a Bitcoin that continues to prove that it is an asset that is uncorrelated to all other assets, whether Wall Street or gold.

In this difficult context, the true face of those who owned Bitcoin was revealed. The people who surrendered on March 12, 2020 and sold their Bitcoins were HODLERS less than 6 months old.

These were people who had bought Bitcoin when sentiment was generally positive in the market, but probably didn’t understand what Bitcoin wants to build in the long run.

Once again, true Bitcoiners can only reveal themselves in a strong bear market.

That’s what happened this time around. True Bitcoiners understand that the volatility of Bitcoin comes from the fact that it is the only true free market in the world. Its users decide the equilibrium price for Bitcoin themselves.

So Bitcoin’s price volatility can be your greatest ally, or your greatest enemy.

The secret to making this volatility your greatest ally is to have true confidence in Bitcoin and the revolutionary system it is building for a fairer world in the future.

In the days and weeks ahead, the joint actions of the Federal Reserve and the central banks of the major economic powers will devalue what you own.

You must prepare for this.

Bitcoin was created for the times we live in. It is your best option for opting out of the current monetary and financial system. As such, Bitcoin will emerge as your hedge against the monetary devaluation that we will all be facing.

At the time of writing, it is March 20, 2020.

Bitcoin is back in the green. Its rebound is even spectacular since its price has increased by nearly 35% in the last 36 hours. Announced as dead by many people, Bitcoin proves once again that it is like a phoenix rising ever stronger from its ashes.

Bitcoiners who had decided to accumulate more Bitcoin at the height of the crisis find themselves comforted in their positions. As is often the case, Bitcoin will reward those who truly believe in its revolution.

Of course, we are only at the beginning of the economic crisis that the world is about to experience, but it is now that you have to choose which side of the revolution you want to position yourself on in order to take advantage of the current situation.

It is up to you to make the right choices.