Now that the Bitcoin market has cooled from its emotional top in late-June, when BTC topped $14,000, mainstream media coverage of the cryptocurrency industry has tapered off dramatically. No longer is CNBC television covering Bitcoin three times in one day; the number of headlines mentioning “crypto” has collapsed.
Yet, there still seems to be some underlying positive press for this market being pushed through mainstream channels.
In a recent Bloomberg Opinion article, Jarden Dillian, an editor and investment strategist, laid out why he believes that Bitcoin is ready to see a bull run that will be larger than the last.
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Bigger Bull Run Than the Last
In the piece, Dillian took some time to explain why he believes that a “system of stateless currencies”, which many say will be centered around an asset like Bitcoin, is needed.
As he wrote, the “philosophical bias” of governmental currencies has never been as weak as it is now, looking to the immense levels of debt that the fiat system has racked up. Indeed, the world’s debt to GDP ratio has hit some 320%, far above what it was prior to the Great Recession of 2008, and the U.S. is on track to have a $1 trillion fiscal deficit for 2019. Crazy.
While debts are supposed to be repaid in full, governments, Dillian writes, are shifting to a model known as Modern Monetary Theory, “or the printing of as much cash as a government needs to fund its spending.”
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This transition, he claims, will be astronomically bullish for Bitcoin, as “it just seems like common sense that you would want to avoid any currency (most of the fiat world) that is being debased to such a degree.”
The analyst — after mentioning Bitcoin’s characteristics of decentralization, scarcity, censorship-resistance/privacy, and cost-efficiency — then concluded that writing that he believes Bitcoin will see another bull market, one that is “much larger than the first one where the potential is finally realized”. As Dillian remarked:
“If you believe that Bitcoin has a future, then the math is simple. If you assume that only 0.5% of the population has adopted it, and that there are only 16 million to 17 million BTC available, then as adoption inevitably increases the price of Bitcoin will rise significantly.”
Bloomberg Opinion Is All Over Bitcoin
Dillian isn’t the first Bloomberg Opinion writer to have accentuated that there is a rapidly-growing fundamental need for Bitcoin. Per previous reports from NewsBTC, Tyler Cowen has recently started to renege on his former belief that Bitcoin is only as worth as much as its marketing, has immense volatility issues, amongst other critiques.
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The economist, who contributes to Bloomberg’s opinion column, first wrote in 2017 that Bitcoin could be used as a good way for risk-averse investors to hedge their wealth, likening the cryptocurrency to gold.
Cowen’s journey to believer finished just recently, when he unveiled an article titled “Bitcoin is (Probably) Here to Stay”. In this sweeping piece, he laid out the following four reasons why he believes that the leading cryptocurrency has immense staying power in today’s society:
- The U.S.-China trade war, which pushes Chinese investors to find their way into safe havens.
- A left-leaning (economics-wise) political climate in the U.S., which may lead investors to store their value away from authorities (IRS).
- The launch of Libra, which Cowen believes increases the survivability of cryptocurrency.
- Hedge against uncertainty.
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