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Even when it comes to cryptocurrencies, there is no better marketing tool than a central bank balance sheet, according to analystsdollars. This is the reason for the saying in the Bitcoin community that “Central bank policies are Bitcoin’s advertising campaign”. The government’s printing of cool money causes inflation and is reflected in the markets. According to Analisdollarser, as long as this situation continues, Bitcoin becomes more attractive.

How is the Central Bank balance sheet related to Bitcoin?

As seen in the tweet below, the pink and yellow candles are inversely proportional. Same time, Cryptocoin. com is progressing in balance with the famous S2F model of Plan B, which we share the analysis of, and the supply and price of Bitcoin have been kidollared so far. This points to the fact that the leading crypto’s supply, which is limited to 21 million, is immutable. However, when it comes to fiat currencies, no one can predict how many dollars the total will be.

https://twitter. com/_log_scale_/status/1414595212865769479

On the other hand, the blue area inside the white line is a representation of the Central Bank’s balance sheet. The steep line gaining upward momentum in 2021 coincides with the distribution of the stimulus packollar series with COVID. Currently ongoing money printing is more common in developing countries.

US printing of money affects the world

Recently, this situation, which analisdollarserin has frequently mentioned, has a direct impact on dollarized countries such as El Salvador. Indirectly, the reserve currency is affected in countries that use the dollar. However, as in the USA, people in these countries do not have access to incentive packages.

https://twitter. com/BitfuryGeorge/status/1361923764594896896

Additionally, another conclusion that can be drawn from the above chart is that the Bitcoin price has recently lost its correlation with the widespread printing of the dollar. According to Analisdollarser, this is a controversial issue that can be pulled in different directions.

What can be done to protect against inflation?

The loss of value of savings with inflation is one of the issues that bother investors the most. For this, analisdollarser states that it can be protected from inflation with a fixed and reliable asset. On this subject, we can take a look at the “Bitcoin Standard” by analyst Saifedean Ammous:

The ratio between stock and flow is a reliable indicator of a commodity’s volatility as money and how fit it is to play a monetary role.

The difficulty of producing bitcoin makes it valuable

The fact that Bitcoin is “hard to produce” is one of the reasons it works and is valuable. The energy required to produce, maintain and maintain Bitcoin gives each BTC its value. Or, it can be explained like this sentence from Saifedean Ammous:

Bitcoin uses so much energy because it’s worth it. What cheaper method do you have for the final payment of hard money worldwide in less than an hour? How much energy do central banks use to produce their easy money?

https://twitter. com/saifedean/status/931157109030387712

Finally, with its limited supply and difficult to manufacture, it becomes clearer why Bitcoin is valued. At the same time, BTC is seen as one of the safest havens for inflation in recent times, according to analystsdollars.


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Michael Lewis

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