- Fiat currencies are likely to experience significant inflation due to the trillions of US dollars being printed now to reverse the economic crash
Over this past month stocks quickly crashed into a bear market and unemployment numbers in the United States jumped into the tens of millions due to the Coronavirus pandemic. In order to reverse this, the United States is passing a USD 2 trillion stimulus package, on top of trillions of USD being printed by the Federal Reserve, not to mention trillions of USD collectively being printed by other Central Banks around the world. Ultimately, this will likely cause a tidal wave of fiat inflation, which makes a strong argument for holding Bitcoin.
Essentially, nations worldwide were already saddled with extreme debt, so the many trillions of USD being printed now is coming out of thin air. When so much money is printed out of thin air it causes the purchasing power of fiat currencies to decline, since the world is being flooded with fiat currency.
Bitcoin is perhaps the best safe haven in this situation, since Bitcoin cannot be printed at will, and theoretically if fiat currencies experience significant inflation in the coming years, Bitcoin should simultaneously gain significant value relative to fiat.
Therefore, this is a prudent time to stack sats and HODL.
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