Bitcoin will become the “gold standard” for the world monetary system

Flooding the market with newly printed banknotes at a time when the coronavirus epidemic has plunged the economy into a state ofstate of chaos may not be the bestdecision. Last week, the Federal Reserve announced several new lending programs that include an additional $ 2.3 trillion in the US economy.

Even the Bank of England has advised that this is a useful measure that will provide a short-term source of additional funding. Of course, these measures raised concerns about inflation.

In a recent podcast, a popular Bitcoin proponentand OpenNode and Tantra Labs researcher Nick Bhatia said the credit money system is “unsustainable.” When huge debt bubbles are inflated, they are bound to burst over time, so the Fed is “simply adding to the bad debt ad infinitum.”

Looking at bitcoin and the cryptocurrency market, it is clear thatafter the sale of the previous month, there has been an increase in institutional support, and the industry has embarked on a recovery path. In this regard, Bhatia is optimistic about the fact that in the future Bitcoin will be used as a monetary base:

«Bitcoin is an asset on whicha monetary system can be established. From my point of view, this is the new gold. I believe that Bitcoin is the base money of the future; previously this role was played by gold.

Interestingly, at the beginning of the 20th century, mostcountries of the world used the gold standard as a means of managing the value of national currencies. But after the economic downturn caused by the First World War, the situation changed - many countries switched to a fiat money system. And, note, asset-backed currencies have their advantages.

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