Causing severe inflation, diluting the original purchasing power of the currency.
The impact is similar to that of the ordinary European nobility after the discovery of America.
Due to the large amounts of gold and silver brought back from America, old Europe experienced severe inflation, and the original purchasing power of the currency continued to decline.
Bitcoin is not gold, but as long as it can legally have purchasing power at the buying end, the inflationary effect is the same as that of gold in America.
The same.
Unlike 400 years ago, after the discovery of America, Europe underwent an industrial revolution, greatly increasing productivity, resulting in an increase in precious metals and commodities.
The increase is approaching.
And now, I personally believe that the information revolution has reached its end, so Bitcoin will either cause inflation in countries that use it legally or be...
Countries declare it illegal, then the bubble bursts.
In fact, many people believe that a new round of technological revolution is underway, capable of generating enough commodity increase to support Bitcoin.
The price of the currency.
Moreover, this wave of technological revolution will bring about a huge period of global prosperity, during which peaceful development among countries becomes the main theme.
The law will not have a world war threatening the internet that Bitcoin relies on for survival.
It's somewhat like a gamble, but currently, the odds of losing with Bitcoin seem larger.
First, American inflation.
The US dollar's monetary easing has already led to inflation; can it accommodate the purchasing power input from Bitcoin?
Second, the escalation of war.
More and more countries are being drawn into war; even without a public declaration of world war from the government, it is extremely unfavorable for Bitcoin.
Third, the instability of currency value and imbalanced distribution.
An excellent currency must have a stable value; otherwise, there is a high probability of being rejected by merchants, preventing its circulation.
Almost 99.99% of Bitcoin is held by a few hundred big players, such an imbalanced distribution naturally hinders the circulation of Bitcoin.
Fourth, Bitcoin is prohibited from trading in some major producing countries.
Unless India + Southeast Asia + Latin America can take over the new era's sweatshops, even with a technological revolution, the sky-high price of Bitcoin will...
It's just a bubble. This process will take at least 20 years. From a certain perspective, Bitcoin, like US stocks, is also a reservoir of the US dollar.
That's all, but the impact of Bitcoin on the US dollar will be greater.
