Reserve

Bitcoin

Gold

Bitcoin is having a period of down price action. With a likely much looser Fed policy coming in the next few months Bitcoin can be a strong play.
Take some profits?
Many inexperienced investors into Bitcoin over the last few months might be glancing nervously at the charts and wondering if now is the time to sell and take those profits.
While taking profits is always a good idea, nervousness over where Bitcoin is going next probably isn&rsquo;t necessary. $26,500 could be a next target for the king of the cryptocurrencies, or even $25,000. Both are the next strong areas of support and a correction down to either of these would be considered very healthy.
Bitcoin or banks?
However, in the grand scheme of things Bitcoin is arguably the asset to hold, at least for the next couple of years or so. The banks are underwater currently, and it is only the Federal Reserve saying that it will backstop any of the &ldquo;too big to fail&rdquo; banks that allows the banks to survive, albeit at the huge cost of reduced purchasing power of the individual.&nbsp;
This is not the case for the smaller banks, and therefore some of these could fail over the coming months, and with the bigger banks being encouraged by the Fed to gobble them up, the process of bank monopolisation continues.
Holding your currency in the bank can consequently be a risk, although a bigger risk might be the low interest rates offered by the banks, which wouldn&rsquo;t allow investors to protect their wealth when the high rate of inflation is taken into account.
Alternatives
Some analysts have suggested that investors put their currency into shorter term treasuries with the thinking that this doesn&rsquo;t lock the investor in for a long time, and also pays a reasonable interest that is safer.
Gold and silver are two hedges that have something in common with Bitcoin in that they are all &lsquo;sound money&rsquo;. Sound money is defined as holding its value over time, a medium of exchange, and highly divisible.
Those embedded in the banking industry would argue that Bitcoin is not a stable value, and given its nascence, this has some truth. It can still see some large swings in value against the US dollar.
However, over time, Bitcoin follows cycles that bring it higher every time, unlike fiat currencies like the dollar that only lose value because they are based on debt and need to be constantly printed into existence, futher debasing the currency.
Education is key
Bitcoin is currently just under $28,000. Many analysts agree that it has started its bull run. It can go lower, but the lower it goes the more it will be bought up by those who have the intelligence to understand what it is.
The genie is out of the bottle and Bitcoin can not be crushed or erased by governments. It is the money of the people and as such it behoves all people who care about financial freedom to educate themselves on how they can protect themselves from what is to come.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Does today’s bitcoin price even matter?

Crypto Daily™

Other articles published on May 8, 2023

A Guide To The Top 3 DeFi Platforms

Bank of Canada Seeks Public Consultation on CBDC Design

Embracing a Promising Future: TMS Network (TMSN) Outpaces BNB (BNB) and Arbitrum (ARB) with a Who...

Polkadot Lands Industry Heavyweight to Join Billion-Dollar Ecosystem as Development Accelerates –...

CFTC Advisor Says US Is Falling Behind in Cryptos – Cardano (ADA) and Tron (TRX) Lead Bear Market...

BNP Paribas Partners With Bank of China to Promote Digital Yuan

Join our free newsletter for daily crypto updates!