Max Keiser : “The US Dollar Suffers From Hyperinflation Against Bitcoin”

Max Keiser : “The US Dollar Suffers From Hyperinflation Against Bitcoin”

News No Comments on Max Keiser : “The US Dollar Suffers From Hyperinflation Against Bitcoin”

The dominance of the US Dollar has been coming to an end for a while. Warnings delivered during the 2008 financial crisis have gone by unnoticed. Today, the greenback is in very dire straits, especially when compared to gold and Bitcoin. Max Keiser indicates the end may be night for America’s currency.

US Dollar vs Gold – Bleak Outlook

There are ample historical charts to look at where popular currencies and assets are concerned. Even if some want to deny it, there will always be a certain correlation. As far as the US Dollar and gold are concerned, there have been ups and downs for both teams. Over the past 10 years, however, gold has clearly taken control of the market for longer periods of time.

As Max Keiser confirms, the US Dollar is experiencing a collapse. It is not just due to Bitcoin, although we’ll get back to that in a bit. The “gap” between the greenback and gold may not seem outspoken. However, the undisputed dominance of America’s currency is coming to an end regardless. 

Judging by the chart above, it is evident things have changed significantly. Between 2009 and 2014, gold was clearly the dominant force. This situation flipped from that point until early 2020. Ever since, gold has retaken its position ahead of the US Dollar.

Interestingly enough, they are both being drawn to one another yet again. To some “experts”, this may indicate gold is losing traction. In reality, it is a very viable asset to not only store value, but also increase one’s portfolio value over time. The same applies to Bitcoin, albeit that asset is a very different creature altogether. 

Max Keiser: “Hyperinflationary Collapse” 

Calculating inflation is never a straightforward matter. It doesn’t just depend on whether prices of goods and services go up. Any currency or asset can suffer from inflation when compared to other markets. For the US Dollar, that inflation is apparent against gold, yet far more outspoken against Bitcoin.

On the chart above, one sees how many Satoshi can be bought with 1 US Dollar. A Satoshi is the smallest unit of a Bitcoin. In theory, one should be able to buy quite a few with the greenback. However, things are not always as they seem. In the words of Max Keiser, a “hyperinflationary collapse” is becoming evident. 

About five years ago, one US Dollar would let users buy 31,152 Satoshi. This rate has been on a near continual decline in favor of Bitcoin’s smallest unit ever since. Today, the ratio sits at 7,687 Satoshi, and is likely to keep drifting lower. 

If this rate of “hyperinflation” that Max Keiser predicts will keep accelerating, an interesting situation is created. Hoping for 1 Satoshi to be worth $1 is unlikely, but not impossible. Such a development puts 1 BTC at $100,000,000. A lofty price target, yet stranger things have happened. 

The post Max Keiser : “The US Dollar Suffers From Hyperinflation Against Bitcoin” appeared first on CryptoMode.

Click to read full article

Author

Leave a comment

Search

Back to Top