Even before the current financial emergency, the (not only) US government spending deficiency was moving toward record levels. Most people in the financial market expected a new recession in upcoming years.
And then, COVID-19 hit the world.
Every single government started to print and borrow money like there's no tomorrow. The issue here? Printing nor borrowing money isn't free. We all will pay for it. And the younger we're, the more we'll pay. Our children will pay too as well as their children. Pay so we and especially our politicians can have easier life right now.
According to CRFB.ORG, the deficits will lead the US national debt to grow from 79% of GDP before the coronavirus crisis to 101% before the end of this year. By 2030, the deficit will be 118% - 130% of gross domestic product.
The US alone spent extra $3.6 trillion dollars since March - three months ago. Can you imagine how much money it is?
1 million seconds is about 11 and a half days.
1 billion seconds is about 32 years.
1 trillion seconds is 32,000 years.
If you're feeling strong, take a look at the US national debt website. The debt is currently sitting at $80,000 per citizen, over $200,000 per a tax payer.
That's still not it. The governments all around the globe are borrowing and printing money from thin air, money backed by nothing. I mean the first 100% by GDP and the rest? Nothing but a promise.
Last recession (2008) I was lucky enough and invested in properties and Gold just before it all went down. Still wasn't happy the first few years but turned to really good the investment.
I'm so glad that this time around there's something besides properties and gold. Yep, Bitcoin and the rest of crypto. Easily to buy and sold or exchange for goods. Having most of my net worth in BTC makes me calm when I read about all of this.
"But, Bitcoin can drop to half in a day" I keep hearing. Yes that's truth and it happened a few months ago, once the panic of Corona pandemic scared most of the western world. Guess what? The whole market halved that time too and Bitcoin made it up to where is was before much faster. That time I've explained to a friend of mine that there wasn't any significant change to cryptography to make the drop logical and that the panic will be over, one day. He didn't buy as I did (again) that time and bought last week. Paid double for the same amount of Bitcoin but he's still happy to hold something else instead of the dollar which keeps shrinking it's value every single year. And the next few years we all going to see it happening much faster as we'll have to pay for the debt we created in the past few months. Everything will be more expensive, the food, cars, rent, Bitcoin. Bitcoin is the stable coin in this situation, and once more people realise this fact, they'll start jumping in. The more people will "invest" the faster it will go up.
Good job we are prepared for this situation. I mean much more than in 2017. We have much more established exchanges, thousands of Bitcoin ATM's, Lightning Network to serve more transactions.
Also, don't forget the halving that happened a couple months ago. Miners are now mining only half of the coins per block as they used to. That mean half of the coins available to flood the market. It used to be about 1800 BTC per day, now it's only 900 per day. What would happen if there was companies producing (for example) a toilet paper and they cut their production in half? Exactly, nobody cares about the price that much if everyone's the buyer.
This all is a perfect storm. This all makes me extremely bullish on Bitcoin. This all makes me HODL as much as I can. Will we have to wait another month? No problem, we didn't came here to get rich quick, we're here so we won't get poor slowly.
