full image - Repost: Why Bitcoin is over-priced and Why Monero is the future (from Reddit.com, Why Bitcoin is over-priced and Why Monero is the future)
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Before I talk about Monero, I want to present my analysis of bitcoin.Currently, alt-coins are down (in price) because bitcoiners exchanged their alt-coins into morebitcoins because bitcoin is current halving and in the past, halving caused bitcoin to rise in price.There is a thing called "diminishing returns".For example, when bitcoin was $1/coin, not much fiat money was required in orderto double/triple the price of bitcoin. When bitcoin reached $100, it was far more costlyto double/triple the price of bitcoin but it was still "do-able".When bitcoin reached $10k/coin, that was the time when stable coins were launched.It is well documented that many stable coins are woefully lacking in reserves, which means,when people buy bitcoins with stable coins, they are vastly inflating the price of bitcoin withsomething that might be backed by little or nothing.Why can this not continue? Multiple stable coins have already failed.The stable coins that still exist are often poorly backed/reserved.Now that bitcoin is up to $60k+ again, now it a good time for these poorly backed/reservedstable coins to increase their fiat money reserves by selling their bitcoin reserves.My personal prediction is bitcoin will not exceed $100k per coin in the next 6 months.There is one exception, and it is a big exception (and relates to Monero).Currently, USD/EUR and multiple other currencies are facing the potential for high inflation.For example, currently, the US economy is slowing, which causes deflationary pressure.But at the same time, the US national/federal deficit/debt is hitting all-time highs.What happens when the US economy slows or goes into recession due to high interest rates?Normally, a recession will cause price (and currency supply) deflation/reduction.As of today, the US federal reserve bank decided to not reduce US interest rates,in order to "fight inflation". In the past, high interest rates should cause prices to go down.But soon this will no longer be true.Look at Covid as an example. During Covid, the US/global economy slowed down a lot.The global economy slowed down so much that the price of oil briefly went negative!!That is known as hyper-deflation.While this hyper-deflation was happening, US national/federal spending was increased.As US federal tax revenues went down (due to a slow US economy), US federal spending went up!The result was a massively increased US national/federal debt/deficit.What is happening now?Currently, the US economy is again slowing, yet US national/federal/congressional spendingis not slowing. Once again, US national/federal debt/deficit is hitting all-time highs.https://ift.tt/dOSl8qX What this means is, very soon, the Federal Reserve Bank will no longer be able to containinflation by raising US interest rates. In other words, inflation will become "out of control".US Interest rates will probably stay high for a very long time, and possibly go higher, but this willnot slow inflation, because the deficit/debt will grow "out of control".It is possible that the US congress could "cut spending" but this almost never happens.The US national debt is already too large for small spending cuts to have any effect.Large congressional spending cuts would instantly make those politician un-re-electable,and possibly causes riots.Why is monero the future?When US inflation becomes "out of control", most or all alt-coins will rise in price including monero.Bitcoin will also rise in price and could exceed $100k/coin when this happens.Monero due to it's much lower market cap (compared to bitcoin), can still easily double/triple in price. As multiple global currencies become "out of control", politicians and central bankswill seek new revenue sources to prop-up their failing national fiat currency.Make sure your assets are private before politicians or banksters change the lawin order to rob you. Or before some rogue officials decide to illegally rob you because hey,it's either they rob you, or they starve (when food prices become "out of control").Feel free to cross-post this on other sub reddits.
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