As a researcher with a background in economics and a keen interest in the digital currency space, I find Gabor Gurbacs’ observation on Bitcoin’s explosive growth and its implications for the U.S. dollar to be a compelling topic. With my professional experience, I can see how the Federal Reserve’s monetary policies over the past decade have significantly contributed to the devaluation of the U.S. dollar.
Expert: Gabor Gurbacs, a strategic advisor at Tether and VanEck, has used X social media platform to highlight a significant vulnerability in the US dollar as a result of Bitcoin‘s remarkable growth over the last 10 years.
Bitcoin’s 17,400% increase – “What happened to dollar?”
The leading executive highlighted in his tweet that Bitcoin, the first cryptocurrency in existence, has experienced an extraordinary development since 2014. Its value grew approximately 17,400% from a starting point of $400 to its current price of around $70,000 on the charts.
Gurbacs argues that it’s more about the US dollar than Bitcoin’s past decade-long evolution in terms of value appreciation.
Ten years ago, the value of one Bitcoin was roughly equal to $400. In contrast, the current Bitcoin price hovers around $70,000 – a staggering increase of approximately 17,400%. The real question isn’t about the journey of Bitcoin but rather the significance of this trend for the US Dollar.
— Gabor Gurbacs (@gaborgurbacs) May 22, 2024
Satoshi Nakamoto, who is believed to be the creator of Bitcoin, emerged on the scene following the 2009 mortgage market crisis. During this time, the Federal Reserve responded by printing money to save large financial institutions – a practice known as quantitative easing. This occurred not just once, but also during the banking crisis in Cyprus several years later, and again when the pandemic hit in 2020 with widespread lockdowns.
Over $6 trillion in new money was produced and introduced into the American economy during the year 2020. This substantial influx of currency has led some economists to warn about the potential erosion of the value of the U.S. dollar as a result.
Bitcoin Pizza Day
As a dedicated crypto investor, I’m thrilled to be part of the global community marking the annual Bitcoin Pizza Day on May 22nd. Intriguingly, this day commemorates an extraordinary transaction that took place back in 2010. At that time, a resourceful software developer residing in Florida named Laszlo Hanyecz made history by becoming the first person to buy a real-world item using Bitcoin.
I discovered an intriguing post on BitcoinTalk forum from 2010, where someone offered 10,000 Bitcoins in exchange for two large pizzas or their delivery to his residence. At that time, this quantity of Bitcoins was valued around $41. Today, however, the same amount would be appraised at several hundred million U.S. dollars – a lucrative offer indeed for providing just two pizzas.
As a cryptocurrency analyst, I’ve observed that every year on this particular day, Bitcoin enthusiasts typically gather together to celebrate their community. Instead of using traditional currency for purchases like pizza, they often opt to use Bitcoin instead. While enjoying their food, they engage in stimulating conversations about the latest trends and developments within the crypto sphere.
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2024-05-22 18:47