Bitcoin Eyes $50k As Crypto Starts The Week HOT

The crypto market is finally enjoying two “green” weeks in a row after a long period of volatility and FUD. Even the market capitalization is up by nearly $170 billion. This helped it surge past the $2 trillion level for the first time in five weeks. Most importantly, almost all crypto assets are trading healthily in the green.

This week was full of good news for the crypto market. Firstly, Exxon announced that it would use excess natural gas to mine Bitcoin. Next, the European Union rejected any provisions on PoW preventing BTC mining and adoption. Meanwhile, Rio de Janeiro announced that it will soon accept Bitcoin payments for taxes. Lastly, Russia said it intends to sell some of its natural gas reserves for Bitcoin.

This news and others shun a bright light on Bitcoin and motivated investors to get back in the crypto game.

What’s driving the market moves?

Well, the world is going through difficult times. A pandemic of a magnitude not seen in decades was followed by a war between two neighboring countries on the border of Europe. Some people seemed surprised to witness these events, as they thought we were living in a world where all this would never happen again.

However, history shows us that everything in life is cyclical. The world goes through crises in cycles. We are never really safe forever. Some would say that the problem is that humans have a penchant for self-destruction. But this is a more philosophical issue that is beyond the scope of this modest article.

In difficult times, fundamentals come back again and again.

We saw gold surpass $2,000 an ounce for the first time in its history in the summer of 2020. We saw Bitcoin go over $60K in the year 2021. Both of these assets are poised to see their prices climb even higher in the months and years to come. The reason for this is ultimately simple when you look at the history of the world, but some people seem to forget that.

Fiat currencies’ value is based on someone else’s responsibility.

For many, the U.S. dollar, which is still a hegemonic global reserve currency, seems unstoppable. Some always say: It is impossible to dislodge the US dollar, as there is nothing behind it. It would be forgetting that falls of the world’s reserve currencies usually happen abruptly at a time when nobody expects it. We are probably at the beginning of a new world monetary order that will put an end to the ultra-domination of the US dollar over the world.

To understand this, you have to go back to the fundamentals of a fiat currency like the US dollar or the euro. These fiat currencies are issued by countries. They only have value if the country in question continues to exist. If America were to disappear, your precious American dollars would be worthless.

Fiat currency is created when the central bank of the country in question buys Treasury bonds issued at the behest of the government of the country in question. This is how the Fed does it with the US Treasury Department. This is how the US public debt now reaches $30T.

These famous Treasury bonds issued by a country like America only have value because the country exists and can tax the population in the future to make the payments on these bonds. In the same way, securities are a claim on a percentage of ownership of a company. If the company goes bankrupt, the security is worthless.

Claims involve someone else’s responsibility because it takes two parties to make it work.

Cash is king until a government defaults for one reason or another…

In the case of the U.S. dollar, everyone thought there was no risk. After all, you have the world’s largest economy, which is dependent on energy and agriculture. The world’s largest tech companies are American. Finally, the country has the most powerful army in the world. It is not for nothing that it is often said that the American dollar is backed by the American army.

However, what has just happened at the beginning of the year 2022 challenges this hegemonic domination of the American dollar. Why? Because for the first time in history, America has decided not to accept its responsibility by blocking Russia’s US dollar reserves. Russia was frozen a little more than 400 billion dollars of foreign exchange reserves that Vladimir Putin had patiently accumulated for almost 10 years to have an economic fortress in case of a hard blow.

And all of a sudden, everything collapsed!

This brings to light an essential reality: the US dollar, or cash in general, is king, unless the US government, or that of the country concerned, defaults. When that happens, and now it can happen even to the king dollar, the real king is money with none’s liability.

… Money with none’s liability like gold or Bitcoin then becomes the real king in these hard times.

In past centuries, money with none’s liability like gold was king in hard times. In a world where everything will become digital, this is where Bitcoin will have its role to play. Bitcoin will be the final thing you run to. Because Bitcoin has only advantages in the world of the future. What is happening in the world right now shows us that.

When Ukrainians need donations to deal with Vladimir Putin’s war, it’s Bitcoin they turn to. The portability of Bitcoin also makes a difference when refugees have to leave their country, taking only their identity papers and a few belongings with them.

You only need to remember a 12- or 24-word phrase to take your Bitcoin with you everywhere. Once you’re safe, you can rebuild your life with the fruits of your labor that you were able to secure within the Bitcoin network. It will be the fruit of your labor, and no one else’s liability will be incurred.

You will be able to enjoy the fruits of your labor without the risk of censorship or confiscation. That’s why I believe so strongly in the mass adoption of Bitcoin in the years to come. All of the events we are currently experiencing will change the way tens of millions of people look at the world.

It will accelerate their awareness of the absolute necessity of owning Bitcoin to truly own something that is not tied to any central bank or country. The future belongs to Bitcoin.