Dollar Weakness Versus Bitcoin Strength In 2021?

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Last Updated on 23 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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The newly passed stimulus package in the US congress meant that the Federal Reserve’s money printers will soon be going Brrr again. This could clearly be seen in the chart of the US dollar which descended versus other major fiat currencies, and started to slide against Bitcoin.

Although economics professors such as Nouriel Roubini might argue that Bitcoin lacks intrinsic value (a similar argument can be made against gold), it is clear that investors in the US wishing to defend their portfolio from deflation will seek out ever newer safe havens.

In 2020, this was clearly Bitcoin. Already we wonder what it will be in 2021.

Advertentie.

Fool printing press

As Bitcoin broke through $29,000 earlier this week, it was once again featured in most newspapers. The Guardian for example featured Russ Mould of investment platform AJ Bell, who stated that:

Nelson Bunker Hunt once espoused the view that ‘Almost anything is better than paper money. Any fool can run a printing press.’ Although the magnate’s attempt to corner the silver market came to grief in 1980 some investors appear to agree with him right now, given how gold and especially bitcoin are performing.

Yes, the battle between gold and Bitcoin as the preferred safe haven of 2021 is clearly heating up as the new year starts.

In fact, among the biggest Bitcoin influencers of 2020, if Lunarcrush is to be believed, is Peter Schiff, the notorious gold bull and Bitcoin hater. He has spewed so much trolling on Satoshi Nakamoto’s invention in 2020, that Bitcoin believers now follow his account simply to laugh at the man.

Schiff repeated a warning earlier this week that Roubini also stated, namely that the US government would not allow Bitcoin to become too powerful. He said:

Bitcoin promoters believe that Bitcoin is an actual threat to central banks and the fiat monetary system. Yet despite this belief they also believe that the U.S. government, which has the most to lose if Bitcoin succeeds, will take no action to protect itself from this threat.

2021 will show whether or not he’s right.

peshkova / Depositphotos.com