2020 was unforgettable, especially for Bitcoin. To help memorialize this year for our readers, we asked our network of contributors to reflect on Bitcoin’s price action, technological development, community growth and more in 2020, and to reflect on what all of this might mean for 2021. These writers responded with a collection of thoughtful and thought-provoking articles. Click here to read all of the stories from our End Of Year 2020 Series.
The short, 12-year history of Bitcoin is filled with exciting times. From the immaculate conception birthed through Satoshi Nakamoto to the extreme polarity between face-melting pumps, catastrophic corrections, infamous exchange hacks and internal Bitcoin civil wars; not many years were as exhilarating for Bitcoiners as 2020 was.
As the infamous Bitcoin crowd has “Paul Revere’d” for years, it seems “the institutions” are finally coming. The new demand over the coming years will propel Bitcoin to become the next world reserve currency.
The Case For A Modern Store Of Value
As we approach the end of 2020, over 5 percent of the total supply of bitcoin is held as a treasury reserve asset on the balance sheet of 20-plus public and private companies, a trend that began to materialize this year.
Over the same period, the M1 money stock of USD — a metric used by economists to quantify the amount of money in circulation in a particular country — increased by over 60 percent. The reckless monetary and fiscal policy instituted by central banks and governments as a global response to COVID-19 catapulted bitcoin into the limelight as a potential, new store of value.
This direct liquidity injection of USD into the United States and the broader global economy is known as quantitative easing (QE) or “printing money.” The Fed’s commitment to increase the money supply at will distorts price signals, reduces real wages, increases wealth inequality and…