What are the prediction we can analyse for bitcoin in 2020?

What are the prediction we can analyse for bitcoin in 2020?


It's important for the average person to understand the concept of bitcoin and economy.  So, okay.  First and foremost, is selling banks.  Well, you could say there's a lot of downside risk with loans,  especially commercial loans right now,  with what's going on with this situation.  But you could also, say if the fed starts to,  and I'll unpack this a little bit further,  I'll use some technical terms right now,  but if the fed decides to peg the yield curve,  so that means they won't allow interest rates to go up. 

The rate of inflation is going up,  then that really hurts the banks because they're getting paid back with these cheaper dollars.  They can't really,  it can raise interest rates, but there's, there are substantial risks that let's say,  therefor inflation.  So that's not good for the banks.  And then you say, okay, well what's cheap right now?

Warren Buffet always likes to buy what's cheap.  And if you look at commodities,  going back 120 years to 1900,  I just listened to an interview with Jim Grant where he went over this,  and commodities relative to financial assets,  more specifically, the stock market,  are 120-year lows.  So if you're a value investor,  and I think that you're selling what could have some future problems with inflation if you look at the macro picture of what's going on with the fed and you're buying a hard asset,  that's a hedge against that inflation that currently right now. 

The relative money supply,  which we can get into later,  is extremely cheap.  So I think that's the biggest takeaway for the average investor. But you got,  you got to use the language that satisfies me here, a little too complex here.  


What are the prediction we can analyse for bitcoin in 2020?

Now let's start with government debt. So lets go-to airline. But the other reason,  I read the reason he's dumping banks is people can't pay back the loans anyway. Do you know what I mean?  So that's a huge problem.  And the, you know,  I was going to have you on to talk about the shadow banking says the system in the repo market,  but the fed and treasury took over.  But the other question is why would he be dumping airline stocks and you're hiding. I think he's dumping airline stocks because they're going to have a lot of pressure.  I mean, that humanitarian flight we were talking about earlier. Maybe a quarter full.  And if you're an airline,  as you guys know,  the margins are incredibly thin,  they don't make much per flight.  Only maybe a couple seats provide the profit,  maybe three or four seats.  It's just that they have so much volume and that's where they make the money.  

So if you've got all these flights going around that are half-empty.  I mean, you got real problems.  So, I think he's seeing longterm,  of the governments, continue with these and these measures that that's going to be very,  very bad for airlines,  especially if they're not allowed to buy their stocks back.  And I think that's where he,  what he's looking at. So what's about the flight? Does it have a red cross on it or something?  

No, it was just like a normal airline flight.  They just do back and forth twice per month for people who have family in the United States that are US citizens or vice versa. Colombians that were stuck in the United States  that wanted to get back home to Columbia because the airports there were shut down at the time.  I'm not sure how they are now,  but you know, I think it also goes back to the debt and you guys I'm sure to have talked about,  the United States has 26 trillion in debt,  but what most people don't realize is going back to 2000.  


You know, from let's call it from 1776 to 2000,  the United States racked up about 5 trillion in debt.  Total.  And in the last 20 years,  we've tacked on an extra 20 trillion or 20 plus trillion.  And so it goes back to the question you were talking about how do you get out of that mess?  Well, you can tighten the belt  and we most likely won't do that.  You can inflate away the debt.  So you're paying it back with cheaper dollars and when you say tighten the belt,  you're talking, they call it austerity.  

Everybody has to kind of back on their consumption and cut back on. If you look at that debt,  is that the fact that we've over-consumed.  You're just pulling a consumption from the future into the present.  So we've over-consumed as a country for literally decades.  And so at some point in time,  the only way that you can meet an equilibrium point is if you under consume by the same amount or more that you over-consumed.   

It's not only is the debt now excessive,  but we're running,  and we'll post this on the site. That we're going to, we're going to keep printing more money or debt.  Well, that's a real mind-blower.  If you look at 2020, right there,  you see that it's projected that we're going to run over a $4 trillion deficit in just one year.  This is our brief analysis and prediction for bitcoin in the economy.

Hope you enjoyed the post. Thank you for being with us.

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