Blockchain and crypto investment company Pantera Capital recently released their monthly report, and the main idea is that anyone who wants to protect their wealth should get their hands off fiat currencies.
“Stay long crypto until schools/daycare open. Until then the economy won’t function and money will be continuously printed.”
Since the United States withdrew the dollar from the gold standard in 1971 (Nixon cut off the direct convertibility of US dollars into gold in August 1971. With this decision, the international currency market lost its formal link with gold), the currency has been losing value and pandemic deficit spending is the icing on the cake. which causes the whole house off card to fall off.
The report highlights the level of US debt in June 2020:
“The United States printed more money in June than in the first two centuries after its founding. Last month, the US budget deficit-864 billion-was larger than the total debt incurred from 1776 through the end of 1979.”
Bitcoins and gold do not require inflation adjustment
Inflation will be uncontrollable, because for effective inflation management, the supply of the dollar should be constant, but at present this is not the case:
“That’s EXACTLY why one should get out of paper money and into Bitcoin. It isn’t being inflated away. One bitcoin, is a constant fraction of the total 21 million that will ever exist.”
Bitcoins do not cause inflation or hyperinflation. In addition to BTC, gold is another scarce resource that is a good source of value and does not require inflation adjustment:
“There is no coincidence gold recently hit an all-time high. Or, said another way, paper money hit a low vs non-quantitative-easible money like gold and bitcoin.”
According to this analysis, even Bitcoin’s best-known critic, Peter Schiff, a well-known investor in gold, said that the dollar is not only falling, but also “will crash”.
“I think the dollar is going to keep drifting down until it collapses. And it is going to usher in a real economic crisis in America unlike something we’ve seen.”
Pantera Capital: DeFi is the future
DeFi has unlimited potential, but their current market capitalization is too miniature in the crypto market and virtually non-existent in the traditional market.
Approximately $ 4.0 billion has been locked in DeFi protocols over the past few months. This is due to more people leaving centralized systems to explore better opportunities through decentralized applications.
Pantera Capital said that DeFi will be crucial to realizing the vision of open financing.
“This subsector of the blockchain industry has emerged as one of the dominant use cases beyond value and speculation. (On future use cases).”
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