Bitcoin rallied from around $4,000 in March of 2020 to over $65,000 in late 2021 due to the massive money printing required due to the pandemic crisis.

 

People are confused as to why Bitcoin would decline as it is supposed to be a hedge against inflation. In fact, Bitcoin is a hedge against monetary debasement, which leads to inflation. Bitcoin rallied from around $4,000 in March of 2020 to over $65,000 in late 2021 due to the massive money printing required due to the pandemic crisis. Now that we are battling the effects of that inflation, it is natural that Bitcoin would actually decline and I would not be completely surprised to see it back below $20,000 in the near future.
It’s rise and fall does not invalidate it – it just needs to be understood better.

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Bitcoin rallied from around $4,000 in March of 2020 to over $65,000 in late 2021 due to the massive money printing required due to the pandemic crisis.

Editor Investors Prism