Blockware Research Spotlight - The Global Marco Environment Brewing a Perfect Storm for Bitcoin
We believe that Bitcoin is currently in the first 1/3 of a parabolic bull market and expect the following Global Macro Economic themes to fuel demand for Bitcoin during this bull cycle:
Central Banks Racing for a Zero Interest Rate Environment
The US has been at a near zero interest rate environment for 10 years.
Japan has been at zero interest rates since the 1990’s.
The European Central Bank recently imposed negative interest rates.
Global Currency Inflation and Devaluations
Venezuela, Argentina, Iran, Turkey, and many more.
The Disproportionate Power of US SWIFT
Among the Americas, Europe, & Asia-Pacific, 79.5% of international trade by value was invoiced in US Dollars.
The US Dollar accounts for 61% of all Foreign Exchange Central Bank Reserves - this is why the USD does not deflate even with a horrible deficit.
The Control Imposed by US Sanctions
60-80 million died in WWII, $6 trillion spent in the Middle East. War is now economic sanctions - Russia, Iran, and North Korea.
Bitcoin as Digital Gold
There will only be 21m Bitcoins. There are 36m Millionaires in the World. If each Millionaire wanted one Bitcoin it would not be possible.
Generational Trends
Millennials live in a digital world. They are now the largest generation on the planet (just passed Baby Boomers).
Millennials use smartphones and tablets. 83% of payments in China are Mobile.
Physical Banking Centers are obsolete - we deposit checks with our phones and use online banking.
A majority of shopping is E-Commerce. Shopping Malls and Brick and Mortars are becoming obsolete.
The Potential of a Technology in its Infancy, Coupled with Speculative Secondary Markets
Markets discount future prices today. When radically disruptive technologies emerge, they can create powerful bull markets – especially when many speculators can begin to envision the possibilities of the innovation or technology coming to fruition. The technology does not need to immediately succeed to experience such bull markets.
For more detail on the Macro Trends impacting Bitcoin, contact us at sales@blockwaresolutions.com and be on the lookout for our upcoming “Bitcoin Fundamental Thesis” Research Report which will examine each of these themes in depth and elaborate on how they support the Bullish case for Bitcoin.