I would not buy Bitcoin at this price because at 23.5k it is overbought and is due for a correction of around 30% to 40%, perhaps back to its 20 week MA at 13.9k. Hedge funds are buying it up right now and by buying the dips they are preventing the price from correcting. Bitcoin has risen from 3.85k in March to a high of 24.4k this month which is 633%. Some of the alt coins have done far better than that (more than 2000%).
A realistic price for Bitcoin in 3 years is $150k and is steadily progressing to that value. Why do we need Bitcoin? Because our purchasing power from fiat currencies will be destroyed from hyperinflation by overprinting. The pandemic has accelerated the printing of fiat to bail out the billion dollar corporations and to throw a few crumbs to the people who were laid off when businesses were locked down. Most of the businesses that have been locked down will go bankrupt, and will never re-open. Multi-generational wealth of these mom & pop businesses will be destroyed. Governments will have to put people on Guaranteed Basic Income (GBI) in order to keep them afloat because the jobs from small businesses will be gone. This will be fine for the first 6 to 12 months but all of this money printing will cause high inflation, and eventually hyperinflation.
Major banks may go under or will have to be bailed out, or bailed in because of the tsunami of bankruptcies headed their way. Bank loans are leveraged at least 10:1, and in some countries they are leveraged 24:1 or even 32:1. This means for every $1 banks have on reserve, they have anywhere from $10 to $32 out on loan. If 3% to 10% of their loans go bad, the bank becomes insolvent. They either go under or the government has to bail them out with taxpayers' money. But Europe, Australia, New Zealand, Canada and the U.S. implemented Bank Bail-in law in 2012/2013 where the bank now has the legal authority to seize customer assets (money in their personal savings, checking etc. including businesses account) should the bank become insolvent, and issue (worthless) bank stock to the depositor as compensation. This is what happened in Cyprus a few years ago where depositors lost around 44% of their money. Bond holders also took a haircut. To try and stop this from occurring in the U.S. the Federal Reserve recently lifted the 10% reserve requirement that banks had to have and have now set their reserve requirements to 0. That means the bank loans don't have to be backed by anything. To make matters worse the FDIC (Federal Deposit Insurance Corp) has only around 1.5% cash ($45 billion) to insure the depositors $10 trillion. But it won't really matter because Wall Street got FDIC to insure $70 trillion derivative portfolio and Wall Street will get paid first before anyone else. If you expect the FDIC to pay you during a widespread banking failure, then you will be waiting quite a while. If you have a lot of money in banks, well, you've been warned.
In the next 2-5 years we are headed into a worldwide depression worse than the 1930's. During the next financial collapse I expect gold and silver to rise at least 10x, and Bitcoin 100x. If you want to know why Bitcoin is important, I suggest reading the book "The Bitcoin Standard".
The Bitcoin Standard
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