The price of bitcoin expressed in US dollars began to show a similar tendency to that which can be seen on the chart of the pre-war German brand.
The author of the @planB profile on Twitter made the above thesis. Let’s look at the graph:
The comparison compares the BTC / USD exchange rate with the German brand course line in the first years after the First World War, when the currency struggled with huge problems.
Hyperinflation after the war
The Germans began a strong reprint of their currency during the First World War to meet the costs of the conflict. Then the then brand became a symbol of hyperinflation in the early 1920s. The loss cost the country not only signing the disgracing Treaty of Versailles, but also an economic catastrophe.
As the data from the above graphs show, the last eight years of BTC / USD increases are similar to the last five years of brand devaluation – from the end of the First World War in 1918 to 1923. At that time, the Weimar Republic then printed paper banknotes in increasing numbers.
“It is interesting that Germany in the years 1918-1923 did not realize that their brand goes down (because of the printing), they thought that the currencies of other countries are going up,” comments PlanB.
Hyperinflation and BTC
Bitcoin can benefit from hyperinflation. Venezuela, whose currency suffers from annual inflation of more than a million percent, is a place where crypto-currencies gain in importance and actual use. Maybe from here President Nicolas Maduro came up last year with the idea of issuing his own e-currency – Petro. However, he forgot that the trust of users is the key to payment. This one ran out. The Venezuelan token has not been welcomed by the citizens of the country with open arms and is actually subjected to similar inflation as bolivar. It’s just that in this case the government itself periodically raised the course of “cryptocurrencies.”
So will BTC gain during the global meltdown and decline in the value of fiat currencies? Everything will depend on how the cryptocurrency will be treated. Is as a highly speculative asset or an alternative to the current financial system. In the first case – as suggested recently by prof. Krzysztof Piech – the BTC course will drop rather. In the second – it can increase strongly …