Bitcoin recently hit a local high of over $31,000 and appears to be regrouping for another upward move. It is clear that bitcoin has broken out and a strong uptrend is forming, supported by the horizontal support at $30,300. Considering the current state of the traditional monetary system, bitcoin seems like an obvious choice for moving wealth out of the system, where it cannot be manipulated, printed, or confiscated. It is certain that more currency will be printed due to the economics of a debt-based system, regardless of the Federal Reserve’s decision on quantitative easing. However, some economic commentators believe that bitcoin will suffer as liquidity becomes scarcer and a potential recession prompts a sell-off in risk assets. Bitcoin has never experienced such an environment before, so it will be interesting to see how it performs compared to other financial assets. Satoshi Nakamoto, the creator of bitcoin, designed it as a lifeline during economic crises, as evident from the Genesis block’s message. Bitcoin is expected to enter a bull market, especially with its upcoming halving in April. In contrast, holding fiat currency guarantees its debasement. Therefore, educating oneself on these matters is crucial for surviving what lies ahead.
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