Below is the source of this announcement. This would be huge in future years. 2022, not so much. This is why we stack Bitcoin like there is no tomorrow:
As the value of the dollar erodes away. The amount it takes to be wealthy, or financially comfortable goes up and up! When a family buys Bitcoin cheap like right now or 3/2020, or 12/2018. They are set up to grow their savings long term. That is wealth, savers who own hard assets that appreciate. There is no other way to grow wealth. Many do it through real estate, gold, or equities. Bitcoin has surpassed all of those means to achieve savings, or wealth. See this chart below:
Also notice New York, and California have the highest levels of savings and equity to attain “wealth”. That is due to the higher inflation rates in those states. Bitcoin may be in a bear market now, below we will explain why.
First of all, this bear market in Bitcoin is a great opportunity. Bitcoin rarely gets this cheap, this oversold. What created this situation, is Fed policy. Below is a chart from Pantera Capital. Real FFR (Fed Funds Rate) using case-shiller (housing market index), and comparing that to Core CPI (using case-shiller). The policy gap between FFR and CPI (when case-shiller housing market index is used) is actually 20.3%. That is far worse than the 1970’s which only got to about 17% policy gap. This means the stagflation and persistant inflation this economy will see could last far longer than economists are predicting. The ability of the Fed to get FFR above their measurement for CPI (8.6%). That ability does not exist. Right now FFR is 1.5%. To bring it to 9%, would collapse the economy and housing market to unheard of levels. Therefore, the policy gap below is a good tool to view how the market got this bad, this fast:
Way too much stimulus in 2020 and 2021, followed by reckless government spending in Ukraine, more handouts in California this month, and just continued government spending in general. Especially this last 2 years. With CPI at 8.6% and real inflation close to, or over 20%, rate hike expectations should be high, yet they are falling. Rate cut expectations were falling and now they are rising. We still expect rate hikes. So, to some extent, we disagree with investor sentiment. Here is a chart showing this sentiment: