$50,000 and more! 5 reasons why Bitcoin leaves central bankers eating dust

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By David Brooks

Bitcoin (BTC USD) recently passed the $50,000 mark. What is your answer? Will you hate or celebrate? A group of central bankers are definitely not celebrating, but their “bubble” warning shouldn’t deter staunch BTC believers in 2024.

Investors are now effectively forced to choose a side. You can join this Pro-Bitcoin camp together with financial giants like BlackRock (NYSE:BLACK) And loyalty. Or you will miss the current BTC rally. Just don’t complain in six months or a year when you’re tempted to buy Bitcoin at much higher prices.

Bitcoin is sharply criticized and is said to be worth “zero”.

Gary Gensler, Chairman of the US Securities and Exchange Commission, is not a fan of BTC. Nevertheless, Gensler and the SEC could not permanently resist the increasing support for Bitcoin. Finally, the SEC reluctantly relented approved Spot Bitcoin exchange funds.

Apparently, the European Central Bank wants the world to know that despite the SEC’s preliminary approvals for Bitcoin ETFs, the ECB will not give Bitcoin its blessing. ECB General Director Ulrich Bindseil and consultant Jürgen Schaaf have just published one blog entry explains that “the fair value of Bitcoin is still zero.”

Such a harsh diatribe from central bankers is unusual. In the same blog post, Bindseil and Schaaf predicted that Bitcoin’s “collateral damage will be enormous” and suggested that BTC is in a “speculative bubble.”

Interestingly, Bindseil and Schaaf refer to “the first Bitcoin bubble in 2013” ​​in a footnote. This year, Bitcoin shot up to $1,000, which certainly seemed like a sky-high price at the time.

Do Bindseil and Schaaf secretly wish they had bought Bitcoin during the 2013 “bubble”? Since then, the price has increased 50x (49x to be precise) from $1,000 to $50,000.

Fact vs. opinion

Bindseil and Schaaf also announced: “The recent approval of an ETF does not change the fact that Bitcoin is neither suitable as a means of payment nor as an investment.” Of course, this is not a “fact” at all. It’s just an opinion.

Now, many people around the world have used BTC for various purposes. For some people, it is a hedge against the devaluation of certain fiat currencies.

Take the Japanese yen for example. BTC recently reached one All-time high against the yen. As a CoinDesk Report implies that this is probably something to do with “[c]The Bank of Japan’s continued money printing and resurgent inflation have “weakened sentiment towards the Japanese yen.”

The “[c]“Continued money printing” is a fact, not an opinion. And another fact: BTC has a fixed limit of 21 million currency units. No government or central bank can order the printing of more Bitcoins.

Some people might even argue that certain fiat currencies, not Bitcoin, are heading towards “zero” value. That is a completely different debate that would leave a big hole in the world. The key here is knowing the difference between facts and opinions, which seems to be a sticking point for certain central bankers.

BTC has value and it is growing

ECB officials are certainly entitled to their opinion. But that’s all they are, just opinions. It is not a “fact” that BTC is not suitable as an investment.

Whether Bitcoin is in a “bubble” and will cause “massive” damage remains to be seen. However, if it had been in a “bubble” at $1,000 in 2013, I would happily go back and buy at the top of that bubble.

In any case, the ECB cannot stop people from buying Bitcoin and the ETFs that track it. Money is flowing quickly into the cryptocurrency space, whether central bankers like it or not. So if you’re on board with an inflation-resistant asset that has withstood a decade of “bubble” accusations, you can add some Bitcoin (or a Bitcoin ETF) to your portfolio today.

David Moadel has provided compelling content—and occasionally pushed boundaries—on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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