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I have been talking about the looming financial crisis and the crash of the fiat monetary system in numerous articles in the past.
One of those articles titled “Current Events a Catalyst for Bitcoin Explosive Rise” gained notoriety among crypto traders and investors around the globe because it clearly outlined and explained the numerous cracks forming in our current financial system.
In another article titled “The True Value of Bitcoin and Why the Government Is Scared.” I predicted the coming collapse of the banking sector due to the huge amount of money printing going on globally. I also talked about how Bitcoin could be the largest transfer of wealth ever seen.
Well, those little cracks are beginning to widen a lot, and investors around the world are seeing it and panicking.
Panic In China As Chinese Banks And Regulators Move To Curb The Gold Rush
Earlier this week, the Chinese government and financial regulators tried to stem the outflow of cash from the banks as Chinese citizens and domestic investors continue to withdraw their money in bulk, preferring to invest in precious metals and cryptocurrency.
This has led to a FOMO into Gold (which is currently at an all-time high and pushing higher), and into Bitcoin which recently started the massive 2020 bullish run, we have all been waiting for.
However, the Chinese government didn’t like this huge wealth transfer to more secured assets, preferring the citizens hodl the depreciating national currency instead.
Chinese Regulators Dictating How Fiat Currencies Can Be Transferred
How does it feel not to have full control of how you invest and spend your hard-earned money?
Well, our Chinese friends are in a world of hurt right now as Chinese regulators have implemented policies that bar domestic investors from investing in precious metals or hodling foreign currencies.
The regulators have also implemented a withdrawal limit to bank accounts saying “this will protect our banking sector from collapsing during these trying times”.
So in simple terms, you have fiat money you have worked hard for but you cannot withdraw, spend or invest it the way you wish.
That is how bad the current fiat monetary system is and I don’t know how long people will willingly continue to live under it.
The U.S Dollars Is Also Crashing
Now enough with the Chinese issues, let’s talk about the U.S dollars. As we speak, the federal reserve is still printing trillions of dollars from thin air and injecting it into the economy.
This as pushed the dollar in index into a downtrend and it is still crashing. What this means in simple terms is:
If you are hodling dollars, the value is depreciating every day and you are loosing money.
What Does This Mean For Bitcoin?
Everything currently going wrong with the fiat monetary system is only increasing the credibility and the importance of a switch to a more effective type of currency and monetary system.
This is where Bitcoin comes in and we are seeing this cryptocurrency grow like never before.
We are also beginning to see a lot of institutions including the banking sector enter the cryptocurrency space. This will only push prices higher in the coming weeks, months, and years.
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.