At the moment, Japan, Europe, China, and the United Kingdom are “printing” money (either YCC or QE). A great number of countries in the E.U. are facing recorded high inflation, as a direct result of their poor energy policy. With the destruction of Nordstream pipelines, they are now forced to buy expensive gas from their dad, the U.S.
Meanwhile, the United States is the only country that is doing kinda okay. The U.S. is still performing significantly better than the rest of the world despite having an annual inflation rate of 8.2%. The U.K. made an attempt at quantitative tightening and reduced its balance sheet much earlier than the U.S. did. However, QT is extremely painful; It is not simple to pull this off without significantly increasing the likelihood of defaulting on the debts. And so they pivoted.
The real value of Bitcoin and precious metals
When it comes to Bitcoin and cryptocurrencies, there are a lot of speculators. They see cryptocurrency as nothing more than a quick and easy way to make money and have no interest in its fundamental values. This is something I’m guilty of myself; I mean, who doesn’t want to get rich quickly? But if we step back for a second and don’t compare BTC against USD, it brings a whole new perspective. The same goes for precious metals; they are scarce and limited, unlike fiat currencies. It is true that all cryptocurrencies and precious metals have been in a downtrend (against USD) for the past few months, but this has not had an impact on the intrinsic value of Bitcoin (if any) or precious metals. It’s just that the USD is getting stronger because of the hawkish monetary policies; seriously JayPow, stop flexing.
The chart above shows the price of silver against GBP. As you can see, we’re still in an uptrend; what exactly is this bear market that everybody keeps talking about?🤣