Absolute proof that bitcoin is underpriced

In the last six months alone, to fight the "virus," Canada has set up a benefit that pays $500 per week for EVERY SINGLE CANADIAN affected by the virus (8M+ people, kids aren't affected and old people still get their pension plan, etc).

It also set up programs that:

a) Pay up to 50% of rent AND municipal taxes for business

b) Subsidizes up to 90% of a company's wages if it had to close due to virus

c) Double the tax credit for millions of families

d) Extended deadlines to pay taxes, removed fees and interest

e) Other programs to "help" Canadians through the pandemic.

Total cost of that program? 275B CAD. That's $10,000 for EVERY. SINGLE. CANADIAN.

Of course, taxes for the year are plumetting as people are working less, buying less (sales taxes), businesses are closed, etc.

Where did they take take that money then? Well, they pretty much just printed. Our debt went from $750B to over a trillion.

And here's the kicker:

THIS PROGRAM IS ABOUT TO BE RENEWED FOR ONE. FULL. YEAR.

Yes, you read that right. This program will now last well into 2021. How many more billions you ask?

So, what does this have to do with bitcoin? Well, $275B is basically $200B USD. That's the entire market cap of bitcoins, right there.

In six months, Canada, one country, "invented" more money out of thin air than the entire market cap of bitcoins. And that is just one, small, almost irrelevant country of 33M people!

Of course, by now, you got that bitcoins, unlike Canadian Dollar, US Dollar, euros (another mess with Greece btw), CANNOT be printed ad vitae eternam.

When you consider that simple fact, you KNOW that bitcoin, the leading cryptocurrency and pretty much the only crypto that everyone will always accept, forever, is undervalued. It's bound to go up long term because unlike cash, it cannot be printed out of thin air.

Even better, most of bitcoins has already been printed. There's less than 3M bitcoins left over the next 100 years.

With that being said, I absolutely refuse to believe bitcoin is not worth $100,000+ per year. As long as people choose to accept it, and more and more people choose to accept it (today someone insisted on being paid with it and gave me a discount over paying in USD), it's bound to go up, period, if only because governments are stupid and print infinite money, forever.

Why is printing money bad, you ask? Well, let's face this: the value of a dollar has gone down 99% in the last 50 years. What can a dollar even buy today? In 1950, my grandfather earned something like $50 a week and could still afford a house, a car, and his wife stayed home. Today, ten times that amount is not even enough to afford half of that.

Canada printing so much cash is bound to devalue its currency. Prices will go up around the board. I remember a Big Mac being $2 as a regular price, now it's $3 on SALE a few times per year, and $6.49 the rest of the time. What's it going to cost in 5 years, $10?

All in all, bitcoin is truly revolutionary because the government cannot bullshit its way out of any situation by printing money. It will go up as currencies go down. And if you ever think bitcoin is overpriced, remember that in six months, one small (in terms of population) country printed more than the entire market cap of bitcoins.

Thank you for listening to me.

Submitted September 25, 2020 at 06:37PM by nunagaming https://ift.tt/3mQLj1V