- Two Minute Crypto – Assumptions
- Two Minute Crypto – Wild Thoughts 2
- Two Minute Crypto – Planning for the Next Bull Run
- Two Minute Crypto – Retail Investors Part 1
- Two Minute Crypto – Retail Crypto Investors Part Two
- Two Minute Crypto – The End of Big Government
- Two Minute Crypto – 2019 The Year of the First Killer Decentralized Application
- Two Minute Crypto – Investing in Crypto in 2019
- Two Minute Crypto – A One Thousand Dollar Bitcoin?
- The Sunday Recap -Down the Rabbit Hole 13
- Two Minute Crypto – On Expertise
- Two Minute Crypto – Key Concepts Part 1
- So You Bought Bitcoin at the All-Time High…
Please click the link to listen to the 16th episode of my weekly crypto podcast ‘Two Minute Crypto’ These are intended to be short, single-topic ramblings on some aspect of the cryptosphere. Comments and critiques welcome.
Two Minute Crypto -Wild Thoughts 2
Welcome to Two Minute Crypto – Today I’d like to add the next installment to the ‘Wild Thoughts’ series – and pose the question whether it is likely a central bank be the catalyst for a major jump in the price of Bitcoin?
OK so we all know we’re in an extended bear market – each perceived level of support has given way as the next and the next. When focused on such grim and grinding price action any positive outlook can be difficult to formulate and optimism can feel entirely hollow. And yet there’s so much to be optimistic about, project main net launches, tech development, use case implementation, new partnerships, the building of a crypto infrastructure and the slow but meaningful penetration of the crypto narrative into the broader social landscape.
On that optimistic note – let’s explore what, in my opinion, is a possible, even, likely catalyst for a future price explosion for Bitcoin. Namely, the first time a central bank – any central bank, adds Bitcoin to their balance sheet – it won’t have to be much, say a few billion or so – a drop in the ocean for any central bank. But that drop could release a tsunami of interest in BTC – once one central bank dips its toe into crypto – others will surely follow. The first movers in this instance are extraordinarily likely to see massive returns on investment. It’s this knowledge that may eventually tempt the monetary authorities of a nation to diversify into crypto. The lockstep adherence to the old financial legacy system is not set in stone. It’s strong until the very moment it isn’t.
So, which central bank might take the leap – it likely won’t be one of the big boys – the Americas and UK’s of this world who have such a vested interest in maintaining the status quo which favours them so strongly. But a somewhat financially marginalised nation, a Brazil, a Vietnam or a Philippines or independently minded nations such as Switzerland or Sweden may well go their own way and break ranks. Japan a nation mired in low growth, high debt, a declining population, and economic output may see an opportunity for growth which has eluded them for decades. Lastly, perhaps Russia might decide to act on its call for a move away from the dollar as the world’s global reserve currency. Once the door is pried open – welcome to the flood. A wild thought, perhaps? But in my opinion over a long enough time-frame a near certainty.
Thanks for listening.