Remember my post about bitcoin price hitting all time high at $19K in December. Well, It just crossed $34K. Why and what next?

Almost 25% of all USD in circulation was created in 2020. Fed has also signalled the interest rate will stay near zero.

Oversupply combined with low interest rate has led to value dilution of USD and multiple other FIAT currencies. This has led the flight to BTC.

What next? Lets explore possible scenarios

1. There is a bubonic plague equivalent moment for BTC.

2. New alternate store of wealth, it very well may be bale of hay with unique genetic sequence. All you need is critical mass acknowledging its value over time.

If not, we get into classic game theory scenario - Central banks(Fed) Vs BTC.

1. Fed does a U turn, it signals increase in interest rates to prop up the value

2. Fed/central banks buy significant share of bitcoins to hold in its balance sheet ($600B market cap as of Jan 3 2021). No guarantee, some other cryptocurrency might replace BTC.

3. Fed does a reverse Bretton woods, i.e. creates Class A currencies backed by Crypto and Class B Fiat currencies

4. BTC hits $500K

It will be fascinating to watch how this plays out

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