"When Money Grows on Trees, Buy Bitcoin"

in GEMS5 years ago

When money is so cheap, it grows on trees, there is only one thing to do...

According to Mike Novogratz, when central banks have the printing presses turned on full power like they do right now, there is really only one thing you need to do.

Buy bitcoin.

He said exactly that in a tweet yesterday.

Check it out:

(Source: ~~~ embed:1245091257061380097) twitter metadata:bm92b2dyYXR6fHxodHRwczovL3R3aXR0ZXIuY29tL25vdm9ncmF0ei9zdGF0dXMvMTI0NTA5MTI1NzA2MTM4MDA5Nyl8 ~~~

We are entering a period where money is literally growing on trees...

In response to the coronaviure pandemic, central banks around the world have fired up the printing presses.

Last I saw the US was leading in terms of stimulus as a percentage of GDP, but there are a lot of countries involved...

Statistic: Value of COVID-19 fiscal stimulus packages in G20 countries as of March 2020, as a share of GDP | Statista
Find more statistics at Statista

(Source: https://www.statista.com/statistics/1107572/covid-19-value-g20-stimulus-packages-share-gdp/)

In the US, this is a larger total dollar amount and a larger portion of GDP than we saw with the stimulus and bailouts back in 2009/2009.

The end result will be tens of trillions of newly created fiat money entering circulation globally...

What do you think that will do to asset prices?

Everything priced in fiat terms will go up.

That means housing prices, stock prices, oil, gold, double cheeseburgers, and yes bitcoin should all go up in fiat terms.

The best thing you can do to preserve value in times like this is buy assets with the fiat that is being debased.

So, for that reason, Novogratz is dead on...

Buy bitcoin.

Stay informed my friends.

-Doc

Sort:  

Yeah... Russia is only 0.3%
I live here. And you know what? Ruble is worth goatshit ((
At least USA can buy something for it's money printing. We do not print but it does not help.

Buy assets that can beat at least the inflation rate!

Everybody should buy shitload of cryptocurrencies and then sell them all at fixed price... that will essentially make value of FIAT go moon and crash the value of cryptocurrencies.

they are printing way to much money but yes that's a great thing for bitcoin because there will only be 21 million bitcoin in the world so I think that's a winner for all bitcoin holder to be honest. the inflation rate will go through the roof if they continue this, and I could see the dollar going down day by day. great post

Asset is everything in life. True talk my friend 💯

These are interesting times indeed @jrcornel ! Between the Coronavirus pandemic and the economic standstill across the world, people are losing wealth left and right - or at least, most of the people are.

Sure there's people who take advantage of this crisis and see it as opportunity, selling masks or other sanitizing products, or simply creating online businesses which are booming right now.

The problem is however that very few really understand the implications of global money printing to this extent. Few understand inflation and how it erodes their wealth slowly but surely.

The situation is really a double edged sword - first you need liquidity, Banks in some parts of the world like Egypt are starting to impose withdrawal restrictions, in fears of a bank run. Trying to restrict the ability of people to withdraw their funds from their accounts in order to avoid running out of money.

This is especially though for the normal individual since we need to have money stored under the mattress for rainy days, in case things go way worse, so we can buy the basic necessities like groceries, etc.

But in reality, we're hoarding cash, and slowly losing it due to inflation. We're losing in both scenarios. Either you risk having your money frozen in a bank account and not being able to purchase food, or you slowly lose purchasing value over time because of inflation.

And this ties into my last point, which is the fact that right now, this is the moment to start investing, to buy up long term assets that go up in price, instead of keeping your wealth on the side. But can you really afford to invest your money when there's a chance that you might run out of money? That you might not have a job, and not have money to buy food or pay rent?

Sure you can buy right now, plenty of sellers to buy from, but what happens if a few months, or maybe a year down the line things get really bad. Your savings and emergency money run out and you need to start cashing out of your investments. You'd be selling, maybe at all time lows, at a loss, with very little liquidity out there. Then what, then your money would still be sent to a bank account which you might or might not be able to withdraw from.

It's really a crazy time and I hope that people realize what's happening. You know the saying, expect the best but prepare for the worst!

Where have you been when it was 2500$. And when will you anmounce selling bitcoin post??? Send the selling post to raimka007@inbox.lt please or straight to my hive wallet. Thank you.

Considering I think it is going to get up near $100k within the next couple years, you won't be seeing a "selling bitcoin" post for some time from me.

Good luck. And how much did you bought?? 10 dollars??? :)