It is amazing to see that the money supply is greatly increasing almost every day here in America. We are beginning to see the reaction in the bond market as rates continue to rise despite the federal reserve keeping rates at zero. We are also seeing commodities such as oil going up too as the value of dollar continues to shrink against anything tangible. What is the end game?
Bitcoin has had a rapid rise and just like anything else, it will see some pullback as the flow of money changes. Though bitcoin is not tangible, it is a great store of value as long as there is buyers and sellers making a market in which it can be traded. Once that stops, it is worthless. Bitcoin can certainly be a global factor is which fiat money will gravitate towards since there is no storage costs like regular commodities.
I just having an increasingly hard time in keeping my faith in paper money. Everytime I use cash, which is less frequent, I think how I am literally trading pieces of paper with no intrinsic value for goods and services.
What is your prediction of the end result?
