If Bitcoin Is Going To Soar, Then One Must Believe The Entire Fiat System Is Going To Ultimately Collapse: Dutch Bank Rabobank
As Bitcoin continues to go higher and higher, everyone wants to jump on this bandwagon.
Just today alone, the digital asset broke multiple levels to climb as high as $40,400. But this might be just the beginning as the supply crunch is real and demand for Bitcoin continues to roar higher.
“The simple bullish macro argument appears to be firmly in place for bitcoin, but it is obvious that price action will remain volatile,” said Edward Moya, a senior market analyst at OANDA. “Outlandish calls for bitcoin to rise to $50,000, $100,000 or $200,000 just got its biggest endorsement from JPMorgan's strategists, a goal for the largest cryptocurrency to potentially reach $146,000 in the long-term,” he said.
According to Dutch Bank Rabobank as well, no matter what situation, expect “a bigger bid for the likes of Bitcoin.”
Unlike Bitcoin, other “markets don’t like that when it involves anything except dolling out corporate bailouts,” as such expect unhappy equities and higher bond yields, wrote Michael Every, the Head of Financial Markets Research Asia-Pacific.
Back in 2013, the bank stopped its customers from buying Bitcoin, and then in 2019, the bank abandoned its crypto wallet plans.
In its latest letter titled “Can One Model What Is Going To Happen Today?…. No,” the bank called cryptocurrency “an entirely *political* play.”
The analyst argues that Bitcoin winning means the US dollar will collapse. But the government of course won’t allow this “disruption” because they have the “biggest guns and jails.” He wrote,
“The market is suddenly full of naive neoclassical economists who can’t model politics who are now embracing elements of Austrian economics without wanting to accept their whole intellectual package. Let’s do the heavy lifting for them then: if one believes Bitcoin is going to soar, then one must also believe the entire fiat system, including US geopolitical hegemony, is going to ultimately collapse.”
Every further points to the Gold Reserve Act of 1934 passed under President Franklin Roosevelt at the height of the Great Depression to stabilize the money supply. Under this Act, the gold standard effectively ended and the US government confiscated its citizens' gold.
Amidst the ongoing unrest in the US, Every said, “there seems no happy ending here the way some have been pricing for. What’s a market to do? Probably blink in confusion and buy Bitcoin, right?”