Widely followed crypto influencer and host of Coin Bureau says that there’s “no turning back” as the crypto sector erodes the entire current financial system.
In a new video, the pseudonymous trader who goes by Guy lists some key factors allowing Bitcoin and cryptocurrencies to reshape the existing financial sector.
Guy notes that with the increasing concerns of inflation and currency debasement, investors around the world are starting to take notice of Bitcoin’s scarcity, as well as its upside potential relative to gold.
“This makes Bitcoin an optimal hedge against inflation and this hedge seems to be the reason why so many institutions have started to buy BTC recently. 40% of all US dollars in existence were printed last year to keep the corpse of the economy lurching along.”
The analyst observes that with Covid-19 restrictions keeping businesses shuttered, many people don’t have the choice to spend their savings or stimulus money on anything except tradable assets like stocks and crypto, speeding up the adoption of Bitcoin.
“This likewise leaves consumers with no other options but to save that stimulus money or invest it in assets. Individuals and institutions have consequently been accumulating BTC like mad, with PayPal and Square collectively buying 100% of all the newly mined BTC in March of this year.”
The closely-followed crypto trader predicts that as the emerging awareness of currency debasement grows, the average person will opt for holding digital crypto assets, rather than saving their fiat or buying precious metals.
“Bitcoin is getting bigger by the day, but that’s just half the story. The other half of the story is that fiat currencies around the world are losing value at a record pace and people are starting to realize that they’re better off holding magic internet money than so-called real money. In the past, people would have held precious metals to protect against inflation, but something tells me we won’t see people paying with gold or silver as long as the internet is up and running.”
Coin Bureau also posits that some of the major pieces of the crypto infrastructure like stablecoins, DeFi (decentralized finance) and NFTs (non-fungible tokens) are solving much-needed problems within the financial landscape, which will lead to a new world order in which crypto dominates.
“Governments are realizing that they just learn to live with crypto in some form or another. At this point, there’s no turning back and that can only mean one thing. Cryptocurrency will eventually replace the current financial system.”
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Featured Image: Shutterstock/Tithi Luadthong