Daily Update - June 1, 2020- We May Heading Towards a Post Dollar World- FT

$BTC 24 Hour High $9,571.27 $BTC 24 Hour Low $9,461.06 $BTC 0.26%


Market Cap $175,620,068,904 USD, 24 Hour Volume $28,404,260,442 USD, Circulating Supply, 18,391,337 BTC.


'It might seem a straw-man question, given that more than 60 per cent of the world's currency reserves are in dollars, which are also used for the vast majority of global commerce. The US Federal Reserve's recent bolstering of dollar markets outside of the US, as a response to the coronavirus crisis, has given a further boost to global dollar dominance.


There are questions about the way in which the Fed’s unofficial backstopping of US government spending in the wake of the pandemic has politicised the money supply. The issue here isn’t really a risk of Weimar Republic-style inflation, at least not any time soon. It’s more about trust. Some people will argue that the dollar is a global currency and that its fortunes do not really depend on perceptions of the US itself. Certainly, events of the past few years would support that view.


But there may be a limit to that disconnection. The US can get away with quite a lot economically as long it remains politically credible, but less so if it isn’t. As economist and venture capitalist Bill Janeway recently told me: “The American economy hit bottom in the winter of 1932-3 after [Herbert] Hoover lost all credibility in responding to the Depression and trust in the banks vanished with trust in the government.”'- Rana Foroohar FT.


Historic St. Johns Church was set on fire last night. Other Iconic US Emblems were defaced throughout the Nation's Capital.


That credibility seems to be increasingly in question as the United States descends into Nation wide rioting, with the President himself being moved temporarily into shelter below the White House while Anarchist ANTIFA rioters, looted, defaced, and burned National Icons throughout the Nation's Capital. Trump announce ANTIFA is now designated as a Terrorist Organization. Meanwhile the rest of the world looks on in shock, and the confidence in the United States internal Governance is under serious doubt. Add to the fact that the Federal Reserve now owns sizable portions of US Public Equities and mounting debt, the threat of Global de-dollarization looms as a very real possibility. Enter the e-RMB?




Respected Bitcoin analyst PlanB who created the popular Stock to Flow pricing model revealed a chart update last night.


'The update, which has been expected since bitcoin's third supply halving last month, is thought to signal the beginning of the next 18-month bitcoin price cycle that puts bitcoin at almost $100,000 before 2021.

The stock-to-flow pricing model calculates a ratio based on the existing supply of an asset against how much is entering circulation.

Commodities such as gold–with the largest stock-to-flow ratio of 62, meaning it would take 62 years of gold production to get the current gold stock–have a higher stock-to-flow ratio and are valued by investors for their scarcity.

Silver has a stock-to-flow ratio of 22 years for its production to reach the current silver stock.

Bitcoin's stock-to-flow ratio is now 50 following bitcoin's third halving last month, which saw the number of the number of bitcoin rewarded to those that maintain the bitcoin network, called miners, cut by half—dropping from 12.5 bitcoin to 6.25.

"Somewhere between a year and a year-and-a-half after the [May 2020] halving, so say before Christmas 2021, bitcoin should be, or should have been above $100,000," PlanB said late last year.' -Forbes


PlanB posted on Twitter today: For the connoisseurs: red dot on #bitcoin

S2FX model, will this be the start of the bull market again? In 2012-2013 and 2016-2017 red dots started the transition to a new phase. #Phase5- https://twitter.com/100trillionUSD/status/1267482790523699200

For more about the Bitcoin S2F model, readers are encouraged to check out this article: https://medium.com/@100trillionUSD/bitcoin-stock-to-flow-cross-asset-model-50d260feed12





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