It’s been another rough few weeks for cryptocurrencies. Bitcoin is currently sitting at around $7,000. And it’s been an even rougher time for altcoins.
However, I remain bullish (primarily on bitcoin) over the next 12 months. I continue to believe the bitcoin halving, which is scheduled to take place in May of 2020, remains the most important catalyst to watch in the crypto world.
Meanwhile, bitcoin’s fundamentals remain strong. Fiat money is beginning to falter. Fed Chairman Jay Powell signaled recently his organization is “strongly committed” to the Fed’s 2% inflation target and won’t be raising rates anytime soon.
But I don’t believe the Fed’s current actions (lower rates and quantitative easing) are truly about hitting its inflation target. What I see is a Fed that’s printing money to fund U.S. deficits.
Ironically, CNBC recently ran an article titled “Fed analysis warns of ‘economic ruin’ when governments print money to pay off debt.”
As I have covered previously, we are already essentially implementing Modern Monetary Theory (MMT). The Fed is printing money to buy up U.S. debt that nobody else seems to want. I’d say that’s pretty much the definition of MMT. Yet here we have Fed economists warning about the dangers of MMT, as they covertly launch it.
I continue to see bitcoin as an emerging hedge against the flaws in our fiat money system. These problems will come to a head over the next decade, and I plan to hold bitcoin throughout this period. So I’m less concerned about the short-term moves and more focused on the long term.
My advice is to keep holding your bitcoin. As I’ve been saying for well over a year now, altcoins will likely have a rougher time for the foreseeable future. I wish this weren’t the case, but it has turned out to be correct. And, unfortunately, I haven’t seen any signs of this changing soon.