Victor Ugochukwu · Oct 26, 2020 . 5min read
ECB’s Monetary Policy further strengthens Tyler’s $500K Bitcoin price prediction
Tyler makes a case why $500,000 per Bitcoin in the future is not impossible feat especially with the current interest rate by banks.
By Victor Ugochukwu · Sep 11, 2020 . 7min read
The unsurprising news that the European Central Bank – ECB will leave its current monetary policy unchanged further strengthens the case for Tyler of the Winklevoss twins $500,000 Bitcoin price prediction to take place.
The European Central Bank’s refinancing rate is 0% and its deposit rate is -.5%. This means it is free to borrow money, but actually costs you money to save. This is both a potent recipe for inflation and powerful advertisement for #BitcoinTyler Winklevoss
Tyler’s tweet on the issue lights up the excitement spark in the eyes of Bitcoin and cryptocurrency enthusiasts. Many of them think the legacy financial system has outlived its relevance and therefore failed. Many especially the absolutist among these class of cryptocurrency advocates call for a total replacement of the monetary system. Hence, they have no problem if Bitcoin replaces the dollar as the global reserve currency. “Bitcoin fixes this” has become a popular phrase whenever the woes of the global financial system are exposed.
According to a recent piece from Market Watch, the ECB left its deposit rate at minus 0.5% and its refinancing rate at 0%. However, the central banker reaffirms it plans to leave rates at present or lower levels until inflation rises to converge with its target. As a rationale for their position, the Governing Council for the ECB said, it
“continues to expect monthly net asset purchases under the APP to run for as long as necessary to reinforce the accomodative impact of its policy rates, and to end shortly before it starts raising the key ECB interest rates.”
ECB’s failing monetary policies, an opportunity for Bitcoin.
As a reaction to the ECB’s monetary policy, Tyler sees it as a huge opportunity and “advertisement” for Bitcoin. Apparently, he already published a hit piece against the dollar and the continuous debt posturing of the Federal Reserve. In the publication, Tyler makes a case why $500,000 per Bitcoin in the future is not an impossible feat. He spells out the fundamental problems with the trio: gold, oil, and the U.S. dollar. With detailed analysis, Tyler and Cameron clear any doubt as to why these three global economic drivers are no longer dependable stores of value. To push forth their argument, they make the case that Bitcoin is the first commodity in the universe where supply does not follow demand.
Tyler and Cameron Winklevoss are known Bitcoin whales who continue to advocate for the digital gold adoption globally. At the moment, Bitcoin’s market cap is around $190 billion. The Winklevoss twins even compared Bitcoin to Gold at $200 billion market cap using the infographics below.
Perhaps this is also one of the factors that have given the DeFi industry the unthinkable growth impetus this year. Even Vitalik, while expressing concerns at the risk appetite of those throwing their money into DeFi projects mentioned the appalling interest rate the banking sector issues.
Whether Tyler’s $500K per Bitcoin prediction will come through remains a subject of debate, especially by those who think otherwise.
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Victor Ugochukwu · Oct 26, 2020 . 8min read