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October 5, 2022
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Bitcoin

Simon Dixon: We are in a wave of bank failures. This will affect the fate of Bitcoin –

Simon Dixon, CEO and co-founder of the BnkToTheFuture cryptocurrency investment platform, details what will happen to Bitcoin when the bailout packages that the government is stimulating the markets to end.

Simon Dixon tells us what awaits us in the future

IN in a new interview Dixon says private banks can inadvertently spoil the real estate market by creating deflationary chaos. This one will hit the financial sector.

“I believe when the stimulus packages run out [finansowych od władzy] (…), then the true nature of individual balance sheets will be revealed [majątkowych] of citizens and the first place that will be hit is real estate markets.

The real estate market is actually the mechanism by which private banks create digital currencies every time they make a loan. So if banks do not sell enough of these toxic assets, as they did before the recent financial crisis, it will reveal the banks’ balance sheets for what they really are (…) “

He said and added that it would eventually trigger another crisis.

He also believes that governments will no longer be able to intervene in the market this time to prevent the collapse of banks. So what will happen next?

“Instead of using some of these FDIC (Federal Deposit Insurance Corporation) insurance schemes, which only have about 1%. of all deposits or less than 1%, you now need a new form of money to inject it into the economy. And a really simple way to do it is to simply create a central bank app and call, “Everyone download this app, get some helicopter money.” If a bank goes bankrupt, then every deposit it has will be replaced with the new digital currency of the central bank.

You essentially replace debt-based money that was created by a private bank with non-debt-based money created by a central bank, and you have a non-inflationary debt relief mechanism in the economy

– added.

What will happen to Bitcoin?

Dixon believes people won’t have to worry about their funds being frozen in these new central banking apps, but they should worry about their privacy and personal freedoms.

Amidst this chaos of potential bank failures, he stresses that he expects the BTC to fluctuate to extreme volatility, but the trend will remain upward.

“I saw Bitcoin drop from $ 30 to $ 3 one day. I saw BTC go down from $ 1,250 to $ 250. I saw it go from $ 20,000 to $ 3,000 in one month. I expect BTC to go down from $ 100,000 to $ 30,000, but the trend is just clear. “

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