Over the next year or so I’ll be on the lookout for a uncoupling of Bitcoin and traditional equities.
Bitcoin was designed to be a hedge against FIAT monetary policy not the risk of a global recession and liquidity crunches like we’ve seen this past month. Using the most secure public blockchain in the world, Bitcoin has a transparent/verifiable/predetermined supply schedule with a set hard cap of 21 million coins.
After all Fiat is a relatively new form of money. The United States has been using our current US dollar for only 49 years since 1971 when we moved away from the Gold Standard. Several countries fiat currencies have experienced hyperinflation over the the last few years like Venezuela and Turkey. Thankfully for Americans, USD is the strongest and most well respected Fiat currency in the world. However there is no reason to believe that will forever be the case.
Bitcoin’s Genesis block message on January 3, 2009:
“The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”
Coinbase just released a great post containing some correlation graphs between Bitcoin and the S&P500. Check it out below.
