The Central Bank Balance Sheet can be considered the best marketing tool for a network that enables the final settlement of money and this leads to a popular notion in the Bitcoin community that says Central Bank policies are Bitcoin’s ad campaign. As long as the government is continuing to print money and giving rise to inflation while devaluating the money in your pocket, Bitcoin will become more attractive.
Central Bank Balance Sheet Releases Most Bullish Bitcoin Chart
Though the chart of Bitcoin may not be promising at this point in time, it should be noted that as you are reading this article, governments all over the world are printing more and more money.
Talking about the relation between the balance sheet and Bitcoin, the pink line and the yellow candle in the chart are inversely correlated.
In addition to this, it should be noted that this chart goes hand in hand with the infamous S2F model of Plan B and the supply and price of Bitcoin are locked.
The blue area that lies inside the white line is a representation of the balance sheet of the Central Bank while the steep line that began pointing up in the year 2021 represents the stimulus packages in response to the COVID-19 crisis.
Moreover, it revealed that the increase in the money supply of the US Dollar is going to affect the whole world, more directly to countries such as El Salvador while indirectly to countries that use the US dollar as a reserve currency.
What to do to Escape From This Trap
There is not much anyone can do about the government printing more and more money but you can save your money from devaluation by putting it in a hard asset.
Right now, Bitcoin is proving to be the hardest asset that has ever been created and as quoted in The Bitcoin Standard:
“The ratio between the stock and flow is a reliable indicator of a good’s hardness as money, and how well it is suited to playing a monetary role.”
The major operations of Bitcoin are promising due to the fact that Bitcoin is difficult to produce.