Why the Bitcoin Bull Run of 2020 Is Different from 2017

> Unless you’re living under a rock, you’d probably know that the central banks have been releasing stimulus packages to help those suffering from the pandemic

Federal governments run stimulus programs, not central banks

> the U.S. dollar is collapsing at an unprecedented rate

The USD isn't collapsing vs any major currencies at the moment. USD has strengthened against major currencies over the last 10 years.

> With only 21 million Bitcoins available and the last one to be mined by 2140, people have realized that it's a deflationary asset at its core

Do Bitcoin enthusiasts consider deflation a good thing? Economists generally consider low, consistent inflation good. The US had several deflationary periods when the gold standard was used and they sucked.

> The price of Bitcoin won’t increase irrationally once its supply ends.

No idea what this means.

> Therefore, investing in Bitcoin might just be the best way to counter the weakening dollar — which has led to the current buying spree.

Dollar has been strengthening. Something else is causing Bitcoin to rise.

1. Hedge funds were active investors in 2017. 2. Retail investors are not the primary drivers of this rally, and holding doesn't drive up prices anyway. 3. The US dollar has not collapsed.

The big shift that's taken place is that custody banks now have a path towards SEC approval. Nothing with a retirement assets could touch crypto because of custody restrictions based on ERISA. This rule announcement changed the entire sector.

I mean, c’mon. There’s already BCH and a thousand altcoins out there, this argument is pretty weak. I too am somewhat pessimistic about our ad-hoc, poor man’s UBI vis-a-vis the stimulus but this too shall pass, the end of the pandemic is in sight even as we enter the worst period, and I feel like this has largely - somehow - been priced into the market.

I find it much more likely that tether being printed from thin air has been driving a lot of the price increase and when that bubble pops we will see where the chips really lie.

When exchanges implode now, it is no longer international news, and the criticism is placed on the poorly run business. It was always poorly run businesses. Imagine blaming the Marriott hack on computers and saying computers aren't regulated enough. That's pretty much what people were doing with bitcoin for 10 years straight, it was comical to watch people grasp at things they didn't understand to agree with their pre-existing opinions.

Those things are major improvement for confidence. Some people need that.