Why Bitcoin Is At $61k?
The Central Banks Are Feeling It!
On Saturday, March 13th, 2021, the cryptocurrency Bitcoin rose to $61k after falling to $47k in February 2021. Some Bitcoin enthusiast are excited, some think it is going to $100k before the end of 2021, and some are awaiting for the crypto bubble to burst.
I mean what is the hype around Bitcoin?
To understand the hype around Bitcoin, most people have to say you need to understand what Bitcoin is. Although, I am here to inform you, you actually don’t need to understand what Bitcoin is. Most investors do not even understand or know the backstory of Bitcoin.
Despite, Bitcoin is a type of digital token otherwise known as a cryptocurrency that’s goal was to be a decentralized form of currency that is free from Central Bank and the Federal Reserve control. The Federal Reserve controls the value of our dollar. In the 1970’s many Libertarians and Cypherpunks feared that Central Banks was taking corporate dollars to influence the power and worth of the United States dollar against the everyday American.
They created numerous attempts of a cryptocurrency. The first successful attempt was Bitcoin. After the success of Bitcoin, in 2017, many other coins followed like the second popular Ethereum.
Back to now, Bitcoin today went to $61k per token. Why?
Well those fears from Libertarians and Cypherpunks were real. After the global pandemic, the Federal Reserve Chairman cut interest rates to 0%. The lowest interest rates have been in the history of the US. Corporate dollars influence the US economy in our government. Most of the U.S Tax payer money went to saving corporate needs versus the American people.
Only 9% of the Stimulus Package goes to everyday Americans.
Looking into the economy, today it was reported that despite stimulus packages efforts foreclosures in the U.S jumped to 16%. It is expected for that percentage to increase upwards. While interest rates for mortgages at an all time low. Allowing the ultras rich to experience a garage sale in real estate properties, once the eviction mortarium is lifted.
We are on the verge of the largest eviction crisis in American history when the Eviction Moratorium is lifted. Followed by a high foreclosure crisis in the real estate market. Both that put a negative impact on individuals credit score for seven years, and make them harder to find homes in the future.
The latest Stimulus Package has no help for the Eviction Moratorium crisis about to erupt on March 31st.
On April 1st, 10M-30M Americans will be at risk to being evicted from their properties in the US, and the stimulus package doesn’t help it. An estimated 10M Americans are behind on rent totaling $57B in total with the cost of utilities. That equals approximately 30–40% of Americans.
The economic fallout of the Government protecting it’s citizens from financial hardship and the rise of inflation led to an increasing distrust with the Central Banks and the USD. According to a Kiplinger Economic Forecast Report, gas prices increased 6.6% this year and the overall cost of living has raised 2.5%.
A new survey from the YouGov Fund reported that just under 50% of Millennials want cryptocurrency like Bitcoin to replace the United States Dollar currency.
Can we blame them?
Since the Federal Reserve has cut interest rates to 0%, the average regular savings rate is 0.07%, meanwhile the average high yield savings account rate is 0.55%.
Meanwhile Bitcoin on March 1st, 2021, Coindesk reported Bitcoin to be $47k. Today it is worth $61k. Bitcoin went up $14k in just 13 days.
If you wanted to open what’s considered to be a high yield savings account for Bitcoin at BlockFi, you would get an interest rate of 6%. More than 10 times the rate at a High Yield Savings account in the United States Dollar.
And let’s say you didn’t trust Bitcoin because of the volatility, the stablecoin USDC that mimics the value of the United States Dollar, currently pays an industry standard of 8% from Nexo.
Our Central Banks devalued the United States Dollar. Use our dollar to fund corporate interest groups, and leave Americans to figure it for their own. So they figured it for their own, they levitated towards Bitcoin and cryptocurrencies. As long as there is distrust in the Central Banks system, Bitcoin and other cryptocurrencies will continue to rise. It’s what our money depends on.
