The Real Reason for Bitcoin's Rise

[BobK71]

Central banks and other elites have painted themselves into a corner.  There is too much debt in this world, and all of it is based on fiat money that central banks can print.

The elites must maintain trust in this fiat money by keeping inflation low.  That means, one way or another, all the growth in wealth must go to a small number of people.

But the more inequality they create, the more distorted and unstable the system becomes.  That is, more and more 'fancy' goods and services are produced just to satisfy the whimsical demands by the lucky people.  This demand can disappear any time financial asset values go down.

So central banks must keep financial asset values high just to keep this demand going.  But this only worsens the inequality, and the cycle continues.  Eventually, something will have to trigger a financial asset crash.

The only real solution to this problem, from the elites' point of view, is to inflate away the debt without destroying the trust in state money.  And the only way to do that is to devalue state money against non-state money.  Traditionally, that non-state money has been gold and silver.  Today, the (Western) elites are using Bitcoin and other cryptos to play that role.

You will not hear this perspective from the mainstream media or establishment economists!

[CoinsCoinsEverywhere]

Central banks and other elites have painted themselves into a corner.  There is too much debt in this world, and all of it is based on fiat money that central banks can print.

The elites must maintain trust in this fiat money by keeping inflation low.  That means, one way or another, all the growth in wealth must go to a small number of people.

But the more inequality they create, the more distorted and unstable the system becomes.  That is, more and more 'fancy' goods and services are produced just to satisfy the whimsical demands by the lucky people.  This demand can disappear any time financial asset values go down.

So central banks must keep financial asset values high just to keep this demand going.  But this only worsens the inequality, and the cycle continues.  Eventually, something will have to trigger a financial asset crash.

The only real solution to this problem, from the elites' point of view, is to inflate away the debt without destroying the trust in state money.  And the only way to do that is to devalue state money against non-state money.  Traditionally, that non-state money has been gold and silver.  Today, the (Western) elites are using Bitcoin and other cryptos to play that role.

You will not hear this perspective from the mainstream media or establishment economists!

Do you have any sources, or is this just a theory?

It seems to me like the simpler explanation is that bitcoin has established itself as an investment vehicle that has been producing ludicrous profits for anyone that has bought and held for any decent length of time.  As bitcoin has become more widely known, accepted, and accessible, more and more people have been piling into it, causing the price to increase.

[davis196]

Keeping the inflation low and the rising inequality have no relation.
Actually the increased inflation will make the elite more wealthy.The inflation hits the people with fixed income
like workers and retired people.Rich people become richer because of the increasing asset prices.
I don`t think that cryptocurrencies are an alternative to the fiat economy,they are still tied with the fiat economy and we have to make them independent from the US dollar and the other fiat currencies.

[sofi@]

This is a good point there is really a chance that those people who want to keep their wealth invest in bitcoin and gold. If they are wise enough putting your money in bitcoin prevent them in expensing so much on tax and then they could have high return from this kind of investment, the market of bitcoin grows that's why many people like to be part of this.

[ahmad21]

This is a good point there is really a chance that those people who want to keep their wealth invest in bitcoin and gold. If they are wise enough putting your money in bitcoin prevent them in expensing so much on tax and then they could have high return from this kind of investment, the market of bitcoin grows that's why many people like to be part of this.

But wont these people will the only one who suffer loss if the people lose interest in state economy? Moreover they will get some new competitors here in the crypto world. I dont think this theory is justified from any point.

[jyotianand01]

Bitcoin itself has power to rise due to its strength in whole crypto market. It was dropped due to some big bad news in last week and it absorb that news in just 3-4 days and again start rising and in this rise, it can make a new high. People have faith in BTC and always comes to buy it whenever it start dropping.

[MintCondition]

Bitcoin itself has power to rise due to its strength in whole crypto market. It was dropped due to some big bad news in last week and it absorb that news in just 3-4 days and again start rising and in this rise, it can make a new high. People have faith in BTC and always comes to buy it whenever it start dropping.

Btc dump will always just seems to be normal on it's market. Having it fall is sometimes needed to eliminate those who are too scared on its dump and for us to see what btc can do whenever dump occurs.

[palle11]

Central banks and other elites have painted themselves into a corner.  There is too much debt in this world, and all of it is based on fiat money that central banks can print.

The elites must maintain trust in this fiat money by keeping inflation low.  That means, one way or another, all the growth in wealth must go to a small number of people.

But the more inequality they create, the more distorted and unstable the system becomes.  That is, more and more 'fancy' goods and services are produced just to satisfy the whimsical demands by the lucky people.  This demand can disappear any time financial asset values go down.

So central banks must keep financial asset values high just to keep this demand going.  But this only worsens the inequality, and the cycle continues.  Eventually, something will have to trigger a financial asset crash.

The only real solution to this problem, from the elites' point of view, is to inflate away the debt without destroying the trust in state money.  And the only way to do that is to devalue state money against non-state money.  Traditionally, that non-state money has been gold and silver.  Today, the (Western) elites are using Bitcoin and other cryptos to play that role.

You will not hear this perspective from the mainstream media or establishment economists!

I think the tail sentence of this theory is not exactly appropriate for me (- "today , the (western) elites are using Bitcoin and other cryptos to play that role). I rather see bitcoin and other cryptos giving riches and ushering anyone who sees the vision of cryptos into wealth.

[DrGuns4Hands]

bitcoin price at over $3900 right now seems bitcoin recovering fast from that big dump as you can see bitcoin drop almost 30% of the price on the first 24 hrs and that means that china really affect bitcoin price because of those people who panic selling . so when the big whales saw that bitcoin price drop really low. they bought a lot of btc. and that's one of the reason why bitcoin price is rising again.

[2double0]

The rule of less supply over more demand is responsible for such a rise in Bitcoins. Initially, investors started putting their money in Bitcoins and helped it grow with a stable flow by holding their coins then and till date. The day it went into media and became a topic of discussion when prices went 2x from 600 to 1200 put everyone in a dilemma why they didn't invest when opportunity knocked their doors way before. They took the advantage afterwards and are now enjoying their profits, seeing which new investors are getting attracted towards Bitcoins.

[BobK71]

Do you have any sources, or is this just a theory?

It seems to me like the simpler explanation is that bitcoin has established itself as an investment vehicle that has been producing ludicrous profits for anyone that has bought and held for any decent length of time.  As bitcoin has become more widely known, accepted, and accessible, more and more people have been piling into it, causing the price to increase.

Simpler is always better, yes, everything else being equal, but (as I'll explain below), it's not.

The major facts are not really in dispute: rising inequality, large debt loads, low consumer price inflation, high asset values (stocks, real estate) and stagnant incomes for the bottom majority in the West.

My weaving of the facts into a theory is based on my study of 500 years of the modern Western system.  I had to come up with it, since mainstream economics and commentators are not about to uncover what is essentially a deceptive global system, even though I rely heavily on the clues they provide, one piece at a time.  The study is careful and detailed, and I've made sure theory is compatible with observable facts in every way.  I have posted many detailed views of this study -- you should find them under my profile.

I would love to have your simple explanation be correct, but, if there were nothing else at work, what Jamie Dimon just said would be true: that governments are just not going to hand over their power over money to a decentralized system.  Not Beijing, not Brussels/Frankfurt/Tokyo/London, and even less Washington, who is the biggest beneficiary of the 'exorbitant privilege' of the dollar.

Currently, it looks like Beijing doesn't want Bitcoin (even though that could be a false flag, will see,) but the Western elites want it.

[BobK71]

Keeping the inflation low and the rising inequality have no relation.

These two may not be directly related to each other, but are both part of the package today as most people are strapped for cash while central banks inject cheap money into the system to prop up and support the expectation for rising asset values.  Inequality is a natural, if unintended, result.

Another way of attaining these two conditions was outsourcing most manufacturing jobs to developing countries in recent decades.  (It might not be problematic if this was due to free-market dynamics, but a major factor in the outsourcing is the artificially propped up values of Western currencies.)

Actually the increased inflation will make the elite more wealthy.The inflation hits the people with fixed income
like workers and retired people.Rich people become richer because of the increasing asset prices.
I don`t think that cryptocurrencies are an alternative to the fiat economy,they are still tied with the fiat economy and we have to make them independent from the US dollar and the other fiat currencies.

True, as I implied, the elites would love to have inflation now (and for the last 9 years.)  The trouble is they can't have that while maintaining trust in their money, which is the major source of their power and wealth.  (Though they would have both in decent measure in 'normal' times -- that would be where they'd go if armed with a magic wand.)

[flag39]

It all sounds logical explanation but a question came to my mind when I read, here I quote "Traditionally, that non-state money has been gold and silver.  Today, the (Western) elites are using Bitcoin and other cryptos to play that role". end quote. It needs to be further explained why would they choose bitcoin over gold and silver, for this purpose?

[Hydrogen]

The only real solution to this problem, from the elites' point of view, is to inflate away the debt without destroying the trust in state money.

That's assuming the end game isn't a stealth scorched earth policy whereby elites favor global depopulation over economic stability.

Years ago a scientist named Dr. Eric Pianka (AKA Doctor Doom) espoused the idea of 90% of the planets human population being wiped out by natural disaster or plague being a good thing for the earth and its natural resources. He was applauded by his peers.

One might say politicians insistence on opening borders, raising taxes, higher spending, greater outsourcing of jobs, greater automation of jobs are designed to crash the system and destroy nations. There hasn't been a real effort made at stabilization. Everyday society becomes more fractured and broken. There isn't a counter culture movement in the opposite direction. Any upside occurring as a result of crypto innovation are entirely incidental and unintended.

[MANCRYPTOS]

The dump after news about Chinese exchange shows us that BTC for a lot of people is only speculative asset. A lot of people doesn`t hold BTC to buy something in real life, but in some years i think you can buy a lot of things in a lot of countries all over the world and BTC became more usefull for buy something, not only for speculations.

[crairezx20]

The dump after news about Chinese exchange shows us that BTC for a lot of people is only speculative asset. A lot of people doesn`t hold BTC to buy something in real life, but in some years i think you can buy a lot of things in a lot of countries all over the world and BTC became more usefull for buy something, not only for speculations.

Its one of the reason why bitcoin was getting crash because of the news and added words from translators.
Honestly china are not telling us or shows us that bitcoin are speculative asset.. bitcoin is volatility and it will be depends of the demand and supply. so Before there are few exchanges that you can buy bitcoins but for now like you said there are lots of exchanges now are selling bitcoin and you can buy bitcoins..

Base what op he said that there are other reason why bitcoin rise up again..
And i think this is not a real reason why we are price increase this days. I think this is because of the new regulated law for exchanges.
About license that is why the price is increasing and rising..

[Outlander]

From my point of view, so many reasons boost the price of Bitcoin, like the adoption, the increasing number of user cases, the maturity of its principle.

[Hamstead]

From my point of view, so many reasons boost the price of Bitcoin, like the adoption, the increasing number of user cases, the maturity of its principle.

Exactly, bitcoin is totally embraced by everyone and create a huge impact to our living and in our economy. There is something in bitcoin that attract more investors and users, and that is of it's promising price. And now bitcoin is still coming back from its fall and it will become more stronger as it will survive from crisis.

[player514]

From my point of view, so many reasons boost the price of Bitcoin, like the adoption, the increasing number of user cases, the maturity of its principle.

Exactly, bitcoin is totally embraced by everyone and create a huge impact to our living and in our economy. There is something in bitcoin that attract more investors and users, and that is of it's promising price. And now bitcoin is still coming back from its fall and it will become more stronger as it will survive from crisis.

Well it's not totally embraced by everyone. Every now and then we see a big name CEO or investor come out and say Bitcoin is shit. However, I do agree in the sense that Bitcoin is very very attractive to newer investors due to the insane gains.

[Nerman]

Is this a legit news or one of the conspiracy theories that involves Bitcoin. I still believe that Bitcoin Price is rising because of the simple rule of supply and demand.