The last two years have been like nothing most of us have ever seen before. You could say it's been the perfect storm for bitcoin and its adoption to accelerate. I have argued that bitcoin's adoption rate and image perception have increased and improved by at least ten years due to covid. This seems to be just the beginning of it. Last week there was a tweet from Jack Dorsey that caused quite a bit of controversy.
As you can see in his tweet, he believes that hyperinflation in the US and around the world is not only going to happen, but has already begun. Before we delve further into this topic, it is important to know Jack's background. He is the founder and CEO of both Twitter and Square. He is also a big fan of bitcoin and believes that it is the future money of the internet. He believes that bitcoin is the cure for the current corrupt monetary system. Although there has been controversy over his ethics and he is getting to grips with Twitter and its consumer police. There's no denying that he's one of the most influential people in the world, and also probably much more "knowledgeable" than almost anyone else.
So back to the topic. He believes that hyperinflations are already starting all over the world and that this will be catastrophic and extremely painful for many people. After all, during such events it is often not the rich people who are hurt the most, but the poorer people. I was fascinated by this post on Twitter and spend a considerable amount of time reading it. I was quite shocked by the large amount of people who quickly dismissed what Jack said and got angry at him. Saying it was very disrespectful or even irresponsible to even mention it. Many of these people said that inflation is only transitory, that we can trust what the government says, and that things will soon return to normal.
It's a good thing that many people reading this may disagree with me. But I really wonder what kind of world these people above have been watching for the past two years. With money printing, supply chains are broken, people are out of work and refusing to go back; instead relying on free money provided by governments. Protests against governments have become much more prevalent. But the point of this article is that prices have gone up quite a lot. Houses, lumber, food, and practically everything else have gone up dramatically. I think this is very similar to pushing toothpaste out of the tube. Once the toothpaste is out of the tube, you don't put it back in. It's the same with the prices of most goods. We won't see prices fall back.
So how does all this deal with bitcoin?
There's a famous phrase among bitcoin fans that says, "bitcoin fixes this." In this situation, that's absolutely true. This is the reason bitcoin was created. It was created to protect our hard-earned money. To protect it from inflation. To finally give yourself change to save and get ahead in life.
The sad thing is that so few people even realize this. There are three types of people in this situation. The first group of people are completely oblivious to the fact that hyperinflation is possible. These are the people who often believe that they will be fine by simply saving money after each paycheck or buying stocks. They trust the system they grew up with and have never questioned it. These are the people who will end up getting hurt the most. Then you have the people who realize there's a problem and that the money is garbage. That they should have invested and purchased cryptocurrency. The problem is that they still view that in dollars and will invest in anything to make a profit. This could mean buying meme coins like Dodgecoin or Shiba Inu just for profit. But these acquisitions won't last forever. I just hope people can sell up and get their profits before the rug is pulled out from under them. Finally we have the third type; people who buy bitcoins as a hedge against inflation and government corruption. They understand the true value of BTC and believe they may never have to sell because it will become widely used in the future; potentially even reserve currencies. because it will become widely used in the future; potentially even reserve currencies. because it will become widely used in the future; potentially even reserve currencies.
The thing that most people don't realize is that everything can seem fine until it's not. The financial markets, and this goes for a lot of altcoins, are like a game of musical chairs. Everything will seem fine as long as the music is playing. But when that music stops and people realize that bitcoin is the asset they should own, and is the only asset that will protect them from what is coming. Then we will see a mad rush to bitcoin and it will be chaotic. There is no timetable for when that will happen. It could take a year, two years, or even a few years. The main thing is you have to think about it. You have to take steps to protect yourself and your future.
It's something I've been thinking about for a long time. I've been saying for over a year now how this will become a game of haves and have nots. The name of the game is bitcoin. There are some stories in the bitcoin community about how people with significant BTC holdings will be living in citadels in the future. This is to protect themselves and ensure their safety from those who have none. Although this is a very dark idea or wealth and I personally hope it doesn't come true. But it is also extremely important to look at the last two years and how the world has changed. Two years ago, global hyperinflation would have seemed like a crazy fairy tale that would never happen. But now I think most would agree that the chance of it happening has definitely increased.
My advice is this. Do your own research and prepare for your future. If you are investing in cryptocurrency; yes, there are many coins that will pump a lot and will rise at a higher rate compared to bitcoin. But also remember it will fall very fast. What good are dollar gains if the dollar reaches hyperinflation and bitcoin becomes the unit of account?
What about you? What did you think of Jack's tweet? Do you think there's a chance of hyperinflation happening. Do you have enough bitcoins if that happens?