Bitcoin is on an absolute tear as of late. Piercing through $54000 it is showing no signs of slowing. In fact we may see more news concerning corporate balance sheet “adjustments”. Like Tesla some corporates are moving their reserves out of the legacy system.
Is this FOMO chasing an outperforming asset class? Or is something else on the horizon? Either way change is here now. The monetary system will now go through it’s own adjustment period to reflect the changes to the current Political administration.
Will Bitcoin correct? It is possible and even healthy. However, this price appreciation is reflecting major moves in capital. Corporates are very discreet when making such transactions. In fact, many may have made the move into Bitcoin already.
So are we late to the show? The answer is no. There are bigger changes on the horizon for the legacy monetary system. And what most are missing is that capital is starving for yield. Yield that currently cannot be earned in the legacy system.
I truly believe somewhere down the road the legacy system and blockchain system will invert. One will become precious and valuable. The other will become a lesser value. This will be a reflection of capital flows moving into a higher yielding system.
The market wants profits. The legacy system has become too backdated and out of touch with technology. And because of corporatism changes take too long to implement. By the time these changes are made the move to the new system will have already occurred.
Here is the truth. We are not in a bubble. There are no liar loans or funny money credit lines when it comes to crypto. However, this may change in the future. Traditional legacy banks will always search for yield. When this occurs watch out! $54000 BTC will look cheap.