Is It Good Time to Invest in Bitcoin ?

Bitcoin is a decentralized, digital currency for the internet. Bitcoin does not have a physical form and can be transferred from one person to another on the internet through the Bitcoin network. Bitcoin’s supply is controlled by mathematics and its value is based on supply and demand.

Bitcoin has been around since 2008, but it wasn’t until 2017 that it really started to take off as more people accepted it as a form of payment. In December 2017, Bitcoin reached all-time highs with its value peaking above $19000 before declining sharply in 2018. This volatility means that Bitcoin is not a good store of value right now, but going forward I think it will be an excellent way to protect against inflation because its supply cannot be increased at will like fiat currencies can with quantitative easing

Inflation is the increase in the price of goods and services over a period of time. It can be caused by a number of factors. One major factor that contributes to inflation is a decrease in the value of money. When a country’s central bank prints more money, the country’s currency becomes less valuable and each unit buys fewer goods and services on the market.

Inflation is bad news for everyone, but it could be especially detrimental for those without jobs or who have been unemployed for an extended period of time. This scenario may lead to jobless rates going up, which could potentially spur on hyperinflation — a situation where inflation goes so high that it threatens an economy’s stability

But let’s also look at the cause of inflation prevailing.

We must examine the roots of inflation to understand what factors are causing it. One popular example is that, currently, the enormous debt incurred during the recession has had an effect on inflated prices. But this isn’t all; other major contributors are global trade policies and measures taken by governments in response to widespread unrest within their populations.

In about a year of Covid lockdowns all western countries injected huge amount of money into economy. They needed to, as it was unthinkable that they should stop paying rent, interests and debt repayments. The West’s financialized economy is seeing a shift in supply — both from Covidian disruptions and China’s hawkish moves — not to mention the willingness of Western countries to shift away from geopolitical China.

When the global labour market disparity’ kept unskilled wages stagnant for 3 decades it was both unskilled and skilled labour that could scarcely spend anymore, but it was skilled labour that was buying up housing at record low ‘ultra-easy’ interest rates, because they had the income to absorb the falling interest rates, as well as the market savvies who prompted the Cryptocurrency world’s decentralization effort .

In the Western world, the cost of goods and services is increasing. Inflation is a long-term economic phenomenon that can occur when there is too much money in an economy. This causes prices to rise due to increased demand for goods and services. The cause of inflation prevailing is most commonly attributed to a variety of factors, but can be due to an increase in the money supply or a major disruption in the economy. With settlement of Inflation in Sight ,I’d feel decidedly vulnerable with bitcoin.

I’m expecting a collapse to $US45,000 and below from the last Dip in November and when interest rates rise in 2022 , will like to see how when the market sentiment sees it.

So basically the higher interest rates associated with cost of living inflation may destroy bitcoin as we notice the central banks has not been very supportive and seems wants to kick out the bitcoins . It will happen very quickly.

I knew that Bitcoin was going to be a bubble, so I didn’t invest so much in it and this is the first time, we monitor this new crypto market as tagged onto Inflation with interest tappering in coming 2022 with so much uncertaincity .

It will be interesting to see how the crypocurrency maneuver around this before we make a choice, This round, if might still recover but into 2022, that's where the regulation by the authority sets in and where we see it likely bitcoins will be hammered again and we expect it to be worst ,before we make a choice .

No Hurry .

Disclaimer Note: The above article is meant for casual reading and not meant as an investment & financial advice . Do your research before taking risk to invest in bitcoins