Russia Starts Bitcoin Mining! Putin Has Clearly Seen The Light And This Could Be Extremely Bullish!
I still remember when I started with Bitcoin in 2014. It was a near impossible dream to see Bitcoin being adopted by regular investors or being legalized by a nationstate. Within a few years these dreams came true, the price rose enormously and the horizon of possibilities shifted forward.
Today the ultimate dream for Bitcoin HODLers is to see nations start to do international trade with bitcoin or start hoarding bitcoin in their treasury. This won't cause billions, but trillions to flow into the tiny market cap of Bitcoin and will cause a HUGE price explosion.
About a month ago I wrote a post why the legalization of Bitcoin in Russia could be HUGE. I mentioned 3 possible scenario’s that could boost the value of Bitcoin, and only one month later the first one is happening already!!
Read the post:
In my previous post about this subject I mentioned the following 3 very bullish scenario’s:
1: Russian miners will re-decentralize mining
2: Russian businesses can use bitcoin to avoid sanctions of the USA
3: Russia could hold reserves in bitcoin to undermine the USD as world reserve currency
http://www.zerohedge.com/news/2017-08-08/russia-launches-100-million-bitcoin-mining-operation
The first scenario is happening!
The fact that the first scenario is happening is bullish because it’s direct effect on miner decentralization. But it is even more bullish that Putin seems to see the huge potential of Bitcoin, especially for his country. This means that he is planning to become a big participant in Bitcoin and this makes the other scenario’s way more likely to happen!
Furthermore this could trigger an armsrace between countries to be the first one to use Bitcoin in their treasury and profit most when others follow. One country has to break the ice to cause the rest of the world to jump into it. One thing is certain, the first country to fully embrace Bitcoin will profit enormously and Russia is one of the most likely candidates because they are suffering most from the current system.
Previous post:
Disclaimer:
This post is written to express my thoughts on this subject and not as investment advice. Everyone is responsible for his own investments / trades.
Do you (dis) like this post or want to add / discuss something? Please let me know in the comments below
That means the US federal reserve could use bitcoin as the main currency. Could this lead to a dollar crash? and to massive adoption of crypto?
I think the US FED will not intentionally shift to bitcoin, because they can't do quantitive easing with it in order to rob the world (inclusive their own citizen) and fill their own pockets. However if other counties start to buy bitcoin for their treasury the USA will have to follow in order to get it for a good price.
They will know that if every county starts to hold bitcoin, the first will profit huge and the last will buy in extremely expensive, so every country want to be the first when it is clear that it becomes a trend and an armsrace could begin. This will drive the bitcoin price enormously and countries could dump their USD what will lead to a crash.
The next step can be that countries start to do international trade in Bitcoin, where Russia could be a logical first mover because of the sanctions (bitcoins can't be frozen and transactions can't be stopped). When this happens the demand for USD will decrease enormously and the USD will loose its world reserve currency status. This causes the pool of existing US dollars to decrease and the effect of quantative easing on inflation will increase (the amount of printed money is now a relatively bigger part of the existing money). This and the lower demand combined could lead to uncontrollable inflation /hyper inflation.
good post :)