So Bitcoin price traded at over $50k today, surpassing $1 trillion market cap.
People are seeing the future where Bitcoin are welcomed or adopted in certain ways by major institutions.
– Tesla bought $1.5 billion Bitcoin recently.
– Twitter considers “how we might pay employees should they ask to be paid in bitcoin, how we might pay a vendor if they asked to be paid in bitcoin and whether we need to have bitcoin on our balance sheet”
– Banks like BNY Mellon are going to offer Bitcoin-based service.
While I share a similar view that it is becoming more mainstream, I think it also faces risks – people should remember that it’s not rare that governments “hated” gold occasionally in the past.
“One of his first moves as President was to declare a four-day bank holiday and suspend gold exports. Within days, the Emergency Banking Act was enforced that prohibited banks to pay out gold coins or bullion or gold certificates except under a government-issued license.
Just two weeks prior to abandoning the gold standard, he issued an executive order prohibiting hoarding of gold coins, bullion or gold certificates.” – Investopidia “When FDR Abandoned the Gold Standard”
As people talk about how Bitcoin can replace gold, the risk transfers to Bitcoin as well.
Fed’ or others’ ability to effectively print money will be reduced if goods and services are priced in Bitcoin and wages are paid in Bitcoin.