It all started in 2008. Nobody knew why, but Bitcoin had experienced a harrowing decline. Supposed cures proved to be flimsy palliatives. Many tried diagnosing the patient, but he simply refused treatment. There were moments when Bitcoin would wake up and shoot its value up for less than a week before plunging to even new depths.
It has been a very steady decline and people who have been investing in Bitcoin since around that time can genuinely say that the cryptocurrency is far from reaching its most glorious days. Certainly in 2017, Bitcoin (BTC) hit almost $20,000 in value – the highest on record.
This prompted a spate of unexpected events. People borrowed and mortgaged their properties to make sure that they won’t miss out on potentially life-changing events. They turned to be life-ruining. Buying at $15,000 is now a reckless investment, as Bitcoin is hardly worth $4,000.
Some, though, think that these events can be fixed. Are they right to believe so?
Brendan Bernstein and the Perfect Storm for Bitcoin
Enter Brendan Bernstein from Tetras Capital, an expert on finances, economics, and a keen observer of the crypto industry. It’s Mr. Bernstein who is promising us some upbeat changes for Bitcoin. Is this possible?
Well, nobody can tell. Not even Mr. Bernstein. However, there are reasons enough to believe that cryptocurrencies may be strengthening their overall offer now that their time has come. Why is that you might wonder? Well, we will let you know in an instant.
The global economy has undergone rapid changes in the past few years and it’s quite easy to see why people are looking for alternative ways to keep their investment and money afloat. Real estate is always a good idea – you buy it and you own it – even if somebody breaks into an apartment you own, the apartment itself is worth at least $300,000-$500,000 in an upscale neighbourhood, so there’s some value you cannot efface.
People are not so much mistrusting banks these days as they are wary of potential rapid downturns leaving them out of precious money. That’s why money must be put in something tangible. A buffer, if you will.
When I was starting my investment, I started as a bank clerk. Having amassed the money for an apartment in less than two years, I’ve decided to buy and save myself rent money. I use that money instead to invest in various assets, stocks and portfolios. The upshot is that today I have a comfortable trickle in revenue and even if it were to disappear, I can already live comfortable on my savings.
How does this relate to Bitcoin though?
Bitcoin – The Real Estate Bargain of the Century
Because of the mistrust that has been building up against banks, people have been looking for a different way to store up their money. Bitcoin is proving a seductive and risk averse investment. It’s true – you cannot expect Bitcoin to be a stable coin, but what you can expect it to do is live on.
If you manage to buy cheap and just let it stew, you might actually have a safer investment thank keeping your money in bank, for example. It has been theorised that now that the U.S. Securities and Exchanges Commission (SEC) will b taking a closer and genuine interest in Bitcoin.
This means that in many respects, Bitcoin is going to be completely legal – taxable perhaps, yes, but still way beyond the control of a central banking regulator. In other words, you can keep your Bitcoin safely away from any supervision and then use it legally in exchange for paying your taxes.
Should you actually go for this?
The Downturns of the Economy
Bernstein has been very critical of the economy as it is. So, here’s what he said in an actual Twitter post:
Theres a perfect storm for BTC right now
- Democratic socialism
- MMT (Modern monopoly money theory)
- QE infinity
- 10k boomers retiring daily (entitlements skyrocketing)
- 2020 election
- US interest expense > tax receipts by 2022
- BTC halving in 2020
Never been more bullish
Such is the truth about the existing financial system. Mr. Bernstein may appear as a headliner and he is. However, his scepticism is not unmerited. Looking into the many downsides of indulging a financial system which is weighed down by the lack of young workforce.
Mr. Bernstein doesn’t offer any ready solutions. Instead, he is picturing a rather disconcerting future in which people will have to muster up their own savvy to enrich themselves and to be able to keep themselves afloat.
In the United States, saving up for retirement is one of the few ways to actually make it in the long term. Many people are working over six days a week to be able to face the years in which they are supposed to take a break.
Others have been thinking about retiring in foreign countries or using their savings to move to more accommodating countries. It’s true, an American can live quite well off in a foreign country for years to come. Pension or no pension, US nationals do have options.
Bitcoin is one of those.
Final Thought on Bitcoin’s Health
Looking at the facts, we all should ask ourselves one thing specifically- is Bitcoin really swinging back into top value? It’s difficult to say, and this much we know for a fact.
The plain truth is that Bitcoin has proven exceptionally resilient. You can use it for quite a few things, including saving up your money. Many people are turning to real estate and spending years paying off. Perhaps buying Bitcoin won’t be a bad idea after all. If a crisis is going to wash over the established financial order, it’s definitely not going to hurt at all if we manage to get a head start.
Bernstein is right to doubt the financial order and we should all be a little more careful about our finances at once. Investment in 2019 is a challenge and nobody really knows where the smart money is.
Some anti-establishment analysts believe that this is Bitcoin.