Posted 1 year ago | by Ben Armstrong

Money for What?

Is 100 BTC a lot of money?

As it stands right now, those 100 BTC would fetch you around $941,500 USD, or 544 troy oz. of pure gold. To be a little less formal, 100 BTC would make you an 'almost' millionaire, which most people would like just fine.

Some people define a Bitcoin Whale as an address that possesses between 100 and 1,000 BTC. Over the last few months, the number of Whales (using the previous definition) has grown by more than 60, which shows that despite the muted price action, there is a lot of new interest in BTC.

Let's be honest, the global central banks are creating money like it is going out of style – and perhaps it is.

A Big Shock for Money

The vast majority of people in the world don't understand that hyperinflation happens.

Hyperinflation is a byproduct of a fiat currency system. In truth, inflation will destroy buying power in any fiat currency over time, but that hyperinflation inflation scenario is what keeps central bankers up at night.

That said, the idea of global hyperinflation is something of a new idea.

There have been regional monetary shocks, like when Spain took South America, and flooded Europe with gold, but that was some time ago, and has been largely forgotten by someone who would be able to debate the merit of smartphone brands.

Back to BTC

The simple fact is that we are living in a time that is uniquely centralized.

An increased push to build a highly connected global society has been positive in some ways, but a central bank-led global monetary system may end up looking like a very big mistake indeed.

Wayne Chen, CEO of Interlapse, feels that:

“The coronavirus has undoubtedly supported Bitcoin as a safe haven and a store-of-value asset. During any economic uncertainty, people immediately divert to alternative assets such as gold, and now Bitcoin to prevent currency erosion.”

Why would a virus support BTC?

Simple.

Central banks have gone bonkers, and added trillions of USD to their balance sheets in a matter of months. There is no telling when this money creation program will end, but it unlikely to let up anytime soon.

An Empty Road Ahead

So – 'Money for What?'

We have to wonder what all that money that has been created is going to be used for, and why clearly insolvent industries were kept alive.

We should also be asking what a huge shipment of gold into New York was buying.

It may have been covering a big bet the US Fed made with gold traders, which apparently needed to be settled in metal.

There is a lot of money moving around.

Keep an eye on the big numbers.

Depending on how many people want to keep walking down the road that central banks have built, it isn't outlandish to suggest there will be a demand for a new benchmark in token pairs (BTCUSD might not mean much without the USD component).

The real question is when?

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About Ben Armstrong

ef4f73e9ddeb61becab57469962fa946?s=90&d=blank&r=g Money for What?Ben Armstrong is a YouTuber, podcaster, crypto enthusiast, & creator of BitBoyCrypto.com. Better known as BitBoy Crypto, he works hard to educate and inform the crypto community.

Ben has been involved with the world of cryptocurrency since 2012 when he first invested in Bitcoin. He used Charlie Shrem's BitInstant & lost Bitcoin in the Mt. Gox hack.

In 2018, Ben decided to go "full-time crypto" and focus all of his time and energy into expanding the reach of crypto.

If you have any questions or comments please feel free to email him at BitBoy@BitBoyCrypto.com or contact him on Twitter @BitBoy_Crypto.