The year was 2009 and the dollar had just recovered from The Great Recession. Bitcoin was born and grew up while the dollar regained its throne. After ten years of strengthening, the pandemic and associated monetary response to sustain the economy, caused the almighty dollar to weaken again.
And according to the Dollar Currency Index losing a decade long trendline, this weakness could allow Bitcoin to gain ground against USD like never before.
The Birth Of Bitcoin And The Delayed Death Of The Dollar
Bitcoins very design and existence are in direct opposition to the dollar. Over the last one hundred years or so, the United States Dollar has dominated the globe as the reserve currency asset.
And while The Great Recession and the resulting money-printing bank bailouts first hurt the dollar, a more than ten-year recovery prevented any economic collapse.
But because printing more money only delays the inevitable, a brilliant and selfless individual by the pseudonym Satoshi Nakamoto sought to break the cycle and created the first-ever cryptocurrency: Bitcoin.
The fiat money supply is ever-expanding, with 20% of US dollars printing in 2020 alone, while there will only ever be 21 million BTC. Rather than being an inflationary asset that loses value over time as its total capitalization expands, Bitcoin is deflationary.
And because it is decentralized, governments cannot control it or manipulate it to create more BTC, and with it more problems.
The dollar is losing a decade long trendline starting around when Bitcoin was just a baby | Source: DXY on TradingView.com The Great Recession Recovery Trendline Breaks Down: What It Could Mean For Crypto
The ten-year trend line that supported the dollar all while Bitcoin learned to walk, and eventually run, is breaking down on monthly ...
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