Bill Harris, one of the founders and former CEOs of the world-renowned electronic payments giant PayPal, said in April 2018 that Bitcoin was the biggest fraud in history. In January 2018, Dan Schulman, who is still CEO of PayPal, stated that the Bitcoin price was very volatile and that they focused on blockchain, not Bitcoin.
But what happened, when we came to October 2020, PayPal announced that it would provide cryptocurrency trading and custody services to its users. The company also stated that it will provide 26 million member businesses with the opportunity to shop with cryptocurrency. According to a study prepared by Pantera Capital in December 2020, PayPal has acquired almost all of its daily Bitcoin mining production (for its customers) with Square, which offers similar services to its customers.
Visa CEO Alfred Kelly noted in January 2018 that Bitcoin was very speculative and emphasized that they would not process Bitcoin transfers. Alas! In January 2021, Visa announced it would add cryptocurrencies to its payments network. In February 2021, the company announced the infrastructure that will turn thousands of customers of banks into a cryptocurrency trading and custody platform. Thus, 100 millions of bank customers will be able to buy and sell many cryptocurrencies, especially Bitcoin, from their own bank accounts without any extra transactions thanks to Visa! Tests have already started with a small bank in the USA.
Jamie Dimon, CEO of JP Morgan, one of the world banking giants, said in September 2017 that Bitcoin is a fraud and that if any employee trades Bitcoin, he will immediately fire him out of "stupidity. Today the CEO at the bank is still the same. But COO Daniel Pinto admitted in a statement on Feb. 12 that at some point they would have to get into the business of trading Bitcoin.
Even Elon Musk tweeted in December 2020 that Bitcoin was at least as 'bad' as FIAT (unlimited dollars, etc.) money. However, in January 2021, Tesla converted $ 1.5 billion of its $ reserve into Bitcoins. Such examples are countless.
So what's going on? Why are the people or institutions that have made bitcoin so bad now become Bitcoins?
First of all, there is customer demand. Central banks printing unlimited money, negative interest practices unprecedented in human history, and the fact that the stock markets are extremely ballooning with all kinds of measures, direct investors to new and high-return instruments.
Major central banks such as the Fed, ECB, BoE, BOJ, PBOC etc. claim that there is no inflation despite printing trillions of dollars of money. However, it has been played with inflation data all over the world, especially in the USA, since the 1980s. According to Shadow Stats, which calculates the old official inflation before 1980, inflation in the USA is actually so high that the country has hardly been able to achieve positive real growth since the 2000 crisis. If there is no inflation and the cost of living, why did the "Yellow Vests" occupy the streets in France for months saying "We can't get along"? Or why, even in Europe and America since the 2008 Crisis, far-right and racist political formations are constantly on the rise? According to Michael Saylor, CEO of MicroStrategy, who was the first manager to convert his company's $ reserves to Bitcoin, the reserves remaining in the $ are actually depreciating at least 10-15% annually.
Tens of millions of individuals from all over the world, who have already experienced this situation by living in their lives, not theoretically, demand this presence as they get to know Bitcoin. Especially in countries that are extremely oppressed under inflation, especially in the years when the price rises, Bitcoin becomes very common among the public. For this reason, it is very logical that PayPal, Square, Visa, MasterCard etc. institutions serving millions of customers around the world have shown interest in Bitcoin at the beginning of the 2021 rising season.
However, there is another fact that makes the 2021 Season different: This year many big capital owners also discovered Bitcoin. Looking at the charts of the past years, these big investors see that Bitcoin is very volatile, but constantly rising in the long term. They know that the dollar is relatively stable, but certainly loses value in real terms in the medium and long term, just as Saylor stated. Undoubtedly, these big investors follow the madness of central banks and politicians more closely and with concern than all of us.
As such, large family offices, large capital owners and funds managing their money and asset management companies had to turn to Bitcoin in 2021. These investors, who know the financial system better than anyone else, have benefited from the blessings of unlimited money so far. However, they clearly see that the experiment of unlimited coinage and negative interest will not end as "beautiful" as they have been told so far.
If you look carefully, the demand is not just for Bitcoin. There is intense interest in all limited monetary assets including gold, silver and Bitcoin. In the document informing SEC that Tesla purchased Bitcoin, the company clearly stated that it could buy any other 'alternative reserve assets', especially gold.
As you can see, the unlimited money ship that started off with the idea of unsinkable hit the Iceberg in 2008. Despite the central bankers who said there was no problem, the ship is slowly sinking. When it hit another mountain in 2020, the nose of the ship got water and its rear was lifted up well. Noticing the situation, some smart economy class and luxury class passengers rush towards the lifeboats. The majority dances with the music still playing. It would be wise to abandon the unlimited money ship before the music played by central bankers is completely silent.
I wish everyone a lot of profits, and I wait for your likes and comments.
