The last two years have been unlike anything that most of us have ever seen before. Arguably it is the perfect storm for bitcoin and its adoption to accelerate. I have argued that bitcoin's adoption rate and perception image has increased and improved by at least ten years because of covid. This appears to be just the beginning of this. There was a tweet by Jack Dorsey last week that became quite divisive.
As you can see in his tweet, he believes that hyperinflation in the USA and across the world is not only going to happen, but it has already begun. Before we delve further into this topic, it is important to know Jack's background. He is the founder an CEO of both Twitter and also Square. He also is a huge fan of bitcoin and think it is the future money of the internet. He believes that bitcoin is the cure for the current corrupt monetary system. While there have been controversies about his ethics and he handles Twitter and its policing of users. There is no denying that he is one of the most powerful people in the world, and also most likely much more "in the know" than almost anyone else.
So back on topic. He believes that hyper inflations is already beginning across the world and that it will be disastrous and extremely painful for many people. After all, during these types of events, it often isn't the rich people that get hurt the most, but the poorer people. I was fascinated by this twitter post thread and spend a considerable amount of time reading through it. I was quite shocked at the large amount of people who quickly dismissed what Jack was saying and they were angry at him. Saying that it was very disrespectful or even not responsible to even mention it. A lot of these people said that the inflation was only transitory, that we could trust what the government was saying and that things would soon go back to normal.
It's okay that many people reading this may not agree with me. But I really wonder what world these people up above have been watching the last two years. With the money printing, the supply chains broken, people out of work and refusing to go back; instead relying free money given out by the governments. Protests against governments have become much more prevalent. But on-topic to this article is that prices have risen through the roof. Houses, lumber, food and practically every thing else have gone up drastically. I think that this is very similar to tooth paste being pushed out of the tube. Once that toothpaste is out of the tube, there is no putting it back inside. The same is with the prices of most goods. We will not see prices go back down.
So how does this all deal with bitcoin?
There is a famous phrase amongst bitcoin fans saying, "bitcoin fixes this." In this situation that is completely true. This is the reason that bitcoin was created. It was created to protect our hard-earned money. To keep it safe from inflation. To finally give yourself a change to save and get ahead in life.
The sad thing is that so few people even realize this. There are three types of people in this situation. The first group of people are completely oblivious to the fact that hyper-inflation possibly could happen. These are the type of people that often believe that they will be fine by just saving cash after each paycheck or buying stocks. They have trust the system that they have grown up with, and have never questioned it. These are the people who will end up being hurt the most. Then you have people who recognize that there is a problem and that cash is trash. That they need to invest and have bought cryptocurrency. The problem is that they are still viewing this in-terms of dollars and will invest in anything to make a profit. This could mean buying meme coins like Dodgecoin or Shiba Inu just to make a profit. But these gains will not last forever. I just hope that people are able to sell out and receive their profits before the rug is pulled out from underneath them. And finally we have the third type; the people who are buying bitcoin as a hedge against inflation and government corruption. They understand the true value of BTC and believe that they may never have to sell, because it will become widely-used in the future; potentially even reserve currencies.
The thing that most people don't realize is that everything may seem fine, until it isn't. The financial markets, and this is also true for a large majority of the altcoins is like a game of musical chairs. Everything will seem fine while the music is playing. But when that music stops and people understand that bitcoin is the asset that they need to have, and is the only asset that will protect them from what is coming. That is when we will see a mad rush towards bitcoin, and it will be chaotic. There is not timetable for when this will happen. It could take a year, two years or even several years. The key thing is that you need to be thinking about this. You need to be taking steps to protect yourself and your future.
This is something that I have been thinking about for quite a while. I have been saying for over a year now how this will become a game of have's, and have nots. The name of the game is bitcoin. In the bitcoin community there are famous stories of how people with significant BTC holdings in the future will be living in citadels. This is to protect themselves and give them safety from those who do not have any. While this is a very dark idea or fortune, and one that I personally hope doesn't come to pass. But, it is also extremely important to look at the last two years and how the world has changed. Two years ago worldwide hyperinflation would have seemed like a crazy fairytale that would never happen. But now, I think most would agree that the chance of that happening has definitely increased.
My advice is this. Do your own research and prepare for your future. If you're investing into cryptocurrency; yes there are many coins out there that will pump a lot and will go up in a higher percentage compared to bitcoin. But also remember it will drop much fast. What good are dollar gains if the dollar reaches hyper-inflation and the unit of account becomes bitcoin?
How about you? What did you think of Jack's tweet? Do you think there is a chance of hyper-inflation happening. Do you have enough bitcoin if that happens?
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As always, thank you for reading!
