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Bitcoin (BTC) can bring the world’s population out of debt thanks to its ability to allow consumers to save without permission.

That was according to Misir Mahmudov, the author and operations associate at cryptocurrency hedge fund Adaptive Capital, in his latest advocacy of Bitcoin on Nov. 27. Mahmudov is the brother of Murad Mahmudov, the well-known Bitcoin proponent.

Bitcoin will remove debt for “millions”

Writing on social media, Mahmudov argued saving in BTC permitted anyone to bypass the barriers to traditional methods of saving such as stocks and real estate.

“Bitcoin is the democratization of savings,” he summarized.

As a result, Mahmudov continued, large numbers of prospective savers would benefit:

“Today, you can stack sats & store your wealth in the scarcest asset. The ability to save wealth in bitcoin will bring millions of people out of debt.”

According to the latest statistics, the United States’ national debt alone equals around $70,000 per capita. Global debt is now so large that for every Bitcoin that will ever exist, there is currently $12.1 million of debt.

BTC savers escape the fiat inflation trap

Bitcoin’s status as sound money has long seen support from academics such as Mahmudov, with others highlighting its specific benefits over phenomena such as fiat currency. 

In particular, Saifedean Ammous, author of the popular book “The Bitcoin Standard” and formerly a professor at the Lebanese American University, continues to point out that fiat represents the antithesis of saving mentality.

Through issuing money which they can inflate at will, governments and central banks foster a culture of spending and borrowing while demonizing saving. 

In what is known as a “high-time-preference” mentality, consumers who use fiat are taught to spend it, not save it, as its inflationary nature means it will buy less in the future. For Ammous, it is John Maynard Keynes, one of the architects of modern economic policy, who is directly to blame for the damage.

“The Bitcoin Standard” quotes Keynes’ infamous soundbite about the long-term impact of his advice: “In the long run, we are all dead.”

With Bitcoin, a provably scarce form of money with a fixed supply which is impossible to manipulate, the opposite is true for savers. 

As Cointelegraph noted, analysts even predict that Bitcoin price models will become less useful in time due to fiat losing its value. Since the U.S. Federal Reserve was established in 1913, the dollar has lost over 96% of its value in real terms.

Cointelegraph By William Suberg , 2019-11-27 10:46:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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