One area of the market that seems to be getting neglected right now is Bitcoin (BTC-USD) and essentially the entire digital asset segment. While this is a relatively new sector, it does have enormous potential going forward. Prices appear to be consolidating and the long-term fundamental backdrop is quite favorable. Thus, this appears to be a good time to accumulate Bitcoin and other select digital assets.
Why Fed Easing is a Very Positive Catalyst
Likely the number one long-term catalyst for Bitcoin and other transactional coins is the Fed’s monetary expansion program. Due to the recently introduced coronavirus threat, the Fed has pledged to increase the monetary base substantially. The Fed is doing this to provide backstops and liquidity for an enormous number of companies, states, governments, individuals, and just about anything else that could find itself insolvent due to the unprecedented economic shutdown.
Without this, it would essentially be game over, collapse. We would be looking at many small, medium, and large corporations in bankruptcy. Many individuals would not be able to pay their bills, mortgages, and loans. Default rates and write-offs would skyrocket. Credit would freeze up. Demand for bonds and treasuries would collapse. There would be a domino effect like at no other time throughout history. It would be the demise of the Western world as we know it.
Therefore, the Fed has no choice but to print countless trillions of dollars to fill all the enormous wholes in our fiat financial system. Also, it’s not just the Fed. Other major central banks are diluting their respective money supplies to implement their own stimulus and bailout programs.
Why This is Beneficial for Bitcoin
Bitcoin and other capable and prominent digital assets represent alternative currency/payment systems. Unlike currencies in the financial fiat order, Bitcoin and other truly decentralized digital assets cannot be created, printed, or digitized…