It’s the biggest economic puzzle of our generation.”īut what if it gets worse? Like… much worse? “That isn’t happening in the major economies like the United States, Japan and China at the moment… Even economists don’t really understand why there isn’t any significant inflation after all the money that’s been pumped in there. Regarding the potential for hyperinflation, Greenspan pointed to recent economic fiascos in Venezuela and Zimbabwe, adding that at some point, the phenomenon will most likely have to kick in, but not everywhere: They’re just pushing money into the system and that money has to find a home.” “The more we see action from the central banks, the more we see cash injections from the Federal Reserve, the European Central Bank and the People’s Bank of China. Greenspan then dove into details surrounding what he feels is the strongest cause of the rapid rise in high-risk asset investment: central bank monetary policy. missile drone strike in Iraq… For the first time in short history, we saw bitcoin reacting to a major geopolitical event as a safe haven. “The whole thing was set off… with the US. That’s one of the main drivers of the market.”īitcoin’s mining block reward is set to be reduced by half in May, resulting in increased scarcity, causing a theoretical increase in the market price of the asset.Īdditionally, increased instability in the Middle East might have sparked the current crypto rally, beginning in January. Greenspan explained that other narratives are playing a much greater role in current conditions: “As far as narratives go, the halving is huge. As of now, it is estimated that somewhere between 65% and 70% of all BTC mining pools are concentrated in China, according to CoinShares Research. If such shutdowns were of any significant scale, a network slowdown would be one of the clearest indicators of such a relationship, especially considering the high percentage of mining pools that are centered in China.

The network is chugging along stronger than ever with hash rates continuing to compete, surpassing all-time highs, according to. Stories of Chinese crypto mining facilities being shuttered appear to have had little impact on bitcoin (BTC) network hash rates. While some consider the coronavirus scare as a possible catalyst for a store-of-value narrative, Greenspan dismissed the notion: “I don’t think anybody inside of China, for example, would be going ‘OK, people are dying here, let me go buy bitcoin.’” Network stronger

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