Shocking Prediction: The Price of Bitcoin by 2031
In a country where the rich are getting richer and the poor are getting poorer, the straw is finally breaking the camel’s back.
Over the last four decades, there have been forces at work that have stolen wealth from the middle class and given it to the rich. Much of the anger in our country is coming from the fact that people are being financially ripped apart by these forces. Yet, they are not truly aware of what those forces are exactly or what to do about them. All they know is that they want change.
Yet, if they understood those forces and what to do about them, they would be able to take matters into their own hands, rather than hope a politician would fix their problems for them.
One of the major forces stealing wealth right now is inflation caused by the Fed printing trillions of dollars to try to “save the economy.”
But when I say printing money, the Fed’s not creating any new wealth or value. They’re just shifting the claims on existing capital, and stealing from those that are dependent on the dollar to hold its value, which is the poor, those living on a fixed income, retirees, pensioners, you’re stealing from the most economically vulnerable and giving to those with access to the freshly printed money.
The power of the Fed has been challenged since its creation. Let’s look back at history to understand when this wealth-stealing began.
The Federal Reserve
In the spring of 1791, the Senate passed the Bank Bill of 1791. The bill, drafted by Alexander Hamilton, gave the Federal Government permission to establish a bank for the United States that would secure the national money supply and “give facility to the obtaining of loans, for the use of the government, in sudden emergencies; and will be productive of considerable advantages to trade and industry in general.”
Not all Americans thought a Central Bank was a good idea. After the Constitution was drafted, two camps, each with very different interpretations of the Constitution and government powers, emerged: the Federalists, led by Alexander Hamilton, and the Antifederalists (also known as the Jeffersonian Republicans), led by Thomas Jefferson. Hamilton believed the federal government needed to be strong; Jefferson believed that too much power in the hands of the government would lead to tyranny.
Thomas Jefferson was very much against a central bank for the very reasons we are all experiencing today. It was Jefferson who pointed out that the Constitution did not grant Congress the power to create a bank or anything else.
He went on to say that even if the Constitution had granted such a power, it would be an extremely unwise thing to utilize because allowing banks to create money could only lead to national ruin. It was not uncommon for Jefferson to compare banking to the dangers of standing armies.
Speaking on February 23, 1791, Jefferson warned against violating the Constitution: “All powers not delegated to the United States, by the Constitution, nor prohibited by it to the States, are reserved to the States or the people. To take a single step beyond the boundaries thus specially drawn around the powers of Congress is to take possession of a boundless field of power, no longer susceptible of any definition. The incorporation of a bank, and the powers assumed by this bill, have not, in my opinion, been delegated to the United States, by the Constitution.”
In other words, Jefferson believed a National Bank was in direct violation of the Constitution.
Despite Jefferson’s protests, Hamilton proposed that the United States charter a national bank to take care of Revolutionary War debt, create a single national currency, and stimulate the economy. The Bank Bill was passed and the seeds for the Federal Reserve Bank were planted.
Today, over 200 years later, the Fed is shrouded in secrecy and operates with near-unlimited power.
Jefferson’s prediction came true. Hamilton’s plan set the precedent for a loose interpretation of the federal government’s authority, leaving room for what Jefferson feared most: tyranny.
It has been known for centuries that printing money creates inflation. Things would be fine as long as the U.S. Treasury and the Federal Reserve Bank did not print too much money. Paper money creation has a long and ignoble history. It has almost always ended in tragedy.
The great American economist, Irving Fisher (1867-1947) put it this way, “Irredeemable paper money has almost invariably proved a curse to the country employing it.”
Since 1944, the world’s central banks have trusted the United States, our bonds, and our dollars. Central banks are filled with them, just like many Americans’ savings accounts.
When the financial crisis hit in 2008, however, the Fed needed to print money to save the world. And print it did.
Paper money creation allows the government to spend more, it keeps interest rates low, and it makes stock prices high. It sounds too good to be true. And, it is. There are negative consequences (both actual and potential consequences).
It is estimated that after all this is said and done, the Fed will have printed $10 Trillion since the start of the pandemic. This printing of counterfeit money robs us all, including foreign central banks, because the dollars and bonds we are holding are dropping in value.
Printing dollars is an inflationary tool that the government uses to devalue the dollar—the more dollars there are in circulation, the less each dollar is worth.
Today, the U.S. government uses inflation to steal from its citizens by devaluing their labor and savings. In other words, the more counterfeit dollars the United States prints, the more dollars it takes for you and me to live.
Bitcoin price soars
There is a very peculiar parallel happening in the United States to that of France in 1791, and it all starts with printing money.
I recently interviewed Robert Breedlove on The Rich Dad Radio Show where he made a bold prediction for the price of Bitcoin in the next 10 years. He said:
“So France had been expanding its money supply, roughly 300% in the years leading up to 1791. They then settled into an annual expansion of 18% per year in 1792. They doubled their money supply expansion again to 35% in 1794.
Again, the law of accelerating issuance and depreciation; the more money they printed, the more money they had to print to keep the thing going. Then in 1795, France quadrupled their money supply expansion, to 145% per year. And finally in 1796, the printing press where they’re creating the currency, the assignats, was publicly broken and burned, so they would not print anymore. And the currency had fallen to zero.”
So in those six years, 1790 to 1796, France expanded its money supply 100X and fully depreciated its currency.
Comparing France’s history to what’s happening in the U.S., Breedlove said:
“In the US today, from 2001 to 2020, we’ve expanded our money supply roughly 250%, so just a little bit less than France did. And recently in 2020, we’ve started expanding our money supply at about 18% per year. Now, that’s a conservative estimate. The actual numbers are roughly 25%, but I’m just going to go with 18% to be conservative.
And so if again, looking at the law of accelerating issuance and depreciation, I would predict that by the year 2024, we will be forced to double that issuance rate again. So from 18% to 35%. Biden is already talking about $5 and $10 trillion stimulus packages. That would be well over a 35% expansion. And then by the year 2030, I would expect that we’d have to quadruple that rate again, reaching a monetary expansion rate in the US of 145% annually. So if those rates hold, between now and 2030, where we increase to 35% in 2024, and 145% in 2030 to 35% in 2024, and 145% in 2030. The total US M2 money supply will have expanded, from today it’s around $20 trillion, it will expand 25x to $500 trillion.”
So what does inflation have to do with Bitcoin?
As I’ve mentioned before there’s the theory of “Gresham’s law.” It states that fake money drives out good. As the Fed creates more fake money, technology like Blockchain and cryptocurrencies rises.
Breedlove said, “It’s when we corrupt and violate the trust fabric, which is money, society unravels. We have lots of anecdotal evidence of that throughout history. Every time the currency collapses, the civilization collapses.”
He’s calling for hyperinflation by 2031 and is predicting that the dollar won’t last more than a few years beyond that.
As a result, based on its current growth trajectory, Breedlove predicts that in 2031 Bitcoin will have reached 20% of the global purchasing power and making its market cap about $250 trillion. He said, “Now, accounting for inflation, that means Bitcoin’s market cap in today’s dollars would be about $20 trillion.”
Editor, Rich Dad Poor Dad Daily