“We see 2020 as a year where at nearly every turn, disruption of the status quo is an overriding theme," said Steen Jakobsen -- chief economist for Saxo Bank -- in his report titled "10 Outrageous Predictions for 2020." You know what another “outrageous” prediction has been? That Bitcoin will hit $100k+ after the 2020 halving. And guess what?
“We see 2020 as a year where at nearly every turn, disruption of the status quo is an overriding theme," said Steen Jakobsen -- chief economist for Saxo Bank -- in his report titled "10 Outrageous Predictions for 2020." You know what another “outrageous” prediction has been? That Bitcoin will hit $100k+ after the 2020 halving. And guess what?
Central banks have always had and will always have a debt-based monetary system. But Bitcoin, which has picked up the title of "digital gold" for its built-in scarcity -- will only ever have a supply capped at 21 million Bitcoin.
Deutsche Bank thinks it could happen.
What a turn of events huh? But don’t take my word for it. Here’s their quote:
"Assuming governments back cryptocurrencies, and consumers want them, adoption rates will drive the timeline for mainstream use," wrote Jim Reid -- a Deutsche Bank strategist. "If current trends continue, there could be 200 million blockchain wallet users in 2030."
Imagine that. 200 million people with 200 million crypto wallets. Jim Reid continues to prop up his argument by saying "the forces that have held the current fiat system together now look fragile and they could unravel in the 2020s.”
Mr. Reid’s report went on to state that "decades of low labor costs" coupled with rising inflation have weakened the fiat system’s of countries around the world. Plus, with Facebook putting Libra together -- we’re now seeing the rise of a new form of money -- corporate money.
Before Bitcoin, before Libra, money printing belonged to governments only. Then Bitcoin gave it to the people. And now corporations want a piece of the pie. It’s turmoil. It’s disruption. The 2020’s are looking like a decade of gigantic change in almost every sector of our lives.
Jim Reid goes on to write: "The year [2020] could represent one big pendulum swing to opposites in politics, monetary and fiscal policy and, not least, the environment. In policymaking, it could mean that central banks step aside and maybe even slightly normalize rates, while governments step into the breach with infrastructure and climate policy-linked spending."
But … all change comes with chaos. Especially a huge change such as currency changes. Not to mention that central banks are still struggling to cope with the aftereffects of our last global financial crisis (where BTC was born) -- all while worrying about another so-far-unidentified financial crisis which myriad financial advisors say we are overdue for.
"Will fiat currencies survive the policy dilemma that authorities will experience as they try to balance higher yields with record levels of debt?" asks Reid. "That’s the multi-trillion-dollar (or bitcoin) question for the decade ahead."
An amazing question to ask, especially because Deutsche Bank -- Mr. Reid’s employer -- has seen its stock and company value cut by 90% in the past decade alone. Almost as if Deutsche Bank was a tanking altcoin…
Bottom line: central banks have always had and will always have a debt-based monetary system. But Bitcoin, which has picked up the title of "digital gold" for its built-in scarcity -- will only ever have a supply capped at 21 million Bitcoin. And even though that supply won’t dry up until 2140 -- it’s getting scarcer by the day.
