Keep Your Bitcoins: Central Bankers’ Bubble Will Burst Very Soon
Like the Dot-com and housing bubbles, Central Bankers’ bubble is presumed to break very soon. Once it does, independent currencies like Bitcoin will surge in value in high demanding markets.
The value of Bitcoin as an independent currency solely depends on its market demand and is created at a fixed rate which was cryptographically and mathematically set amid its launch in 2009. The US and the majority of the world’s monetary systems are based on debt, as the printing of fiat money relies on the level of debt a country deals with.
The fundamental concept behind quantitative easing or printing of cash is that it would bloat the economy by injecting money into its markets. What actually ends up happening is billions of dollars are distributed to the top-tier of an economy, which fails to be absorbed by the rest. Such inefficient and illogical debt-based monetary system leads to higher inflation rates and increased possibility of bankruptcy.
This post was published at Coin Telegraph on 2016-09-29.