Recently a bill to pass a $1.5 trillion dollar spending bill that was nearly 3000 pages long with major bipartisan support in the House. While some economist believe cryptocurrency is not here to stay and do not believe in it as a hedge I think otherwise.

What was the purpose of this spending bill?

This bill will fund Federal Government agencies.

The bill is for the rest of the fiscal year of 2022.

Inflation is now soaring to 7.9% and we see prices rising in all sectors effecting the way most Americans live their lives, especially the lower and middle classes.

Many studies are showing that the Middle-Class Americans are experiencing the effects of inflation more than the lower-middle class and the upper classes.

While these studies don’t truly show that much, we do know that “Treasury notes, which are issued with maturities from 2 to 10 years, account for 53 percent of the increase in debt since March 1, 2020.

Treasury bills, which mature in one year or less, account for 24 percent of the increase.”

Treasury bonds, mature after 10 years or more along with Treasury inflation-protected securities and floating-rate notes, combine to account for the rest being around 23 percent of the increase.

Since March 1st 2020, the United States Treasury has borrowed nearly over $6 Trillion and most of this “occurred since March 30, 2020, which was just after the Coronavirus Aid Relief, and Economic Security (CARES) Act”.

The fact is Bitcoin and Ethereum are bigger than just cryptocurrencies. The way I view Bitcoin is it is in fact a technology that can allow for payment transfer or value transfer but this technology now compared to other cryptocurrencies has become obsolete. Which is why we are seeing Bitcoin slowly becoming the next version of gold or in other words digital gold. Many crypto geeks believe this is directly correlated to these three events and subjects located below:

The Halving

Mainstream adoption

Total Supply Being Met

Circulating Supply: 19,000,000

Total Supply: 21,000,000

The halving is an event which causes major disruption to the supply chain in Bitcoin by causing the amount of Bitcoins being made to be cut in half which ultimately makes it very difficult for miners, exchanges, buyers, sellers and the whole market to accommodate to the demand influx of changes with this Bitcoin event.

This is simply because there is not enough to go around which is why every few years we will see these massive spikes in price which long term just frighten investors.The spikes are realistically extremely healthy short term bubbles which ultimately create higher and higher price floors for Bitcoin to bounce off or up.

The second reason why Bitcoin is a great hedge is because we are seeing mainstream adoption not only by other countries but by other major news agencies and financial companies such as MicroStrategy and Grayscale with MicroStratey now holding roughly 129,000 BTC.

“In August 2020, MicroStrategy bought its first BTC. Since then, the company has slowly accumulated more and more. Take a look at Saylor’s Twitter (NYSE:TWTR) profile and it’s easy to see why. A staunch believer in a future dominated by digital coins, Saylor fires off tweet after tweet defending Bitcoin as a store of value and transactable currency. This morning, Saylor also disclosed news of a massive new Bitcoin purchase through his Twitter account. Specifically, the company is shelling out nearly $200 million on more BTC for its portfolio. This brings MicroStrategy’s total holdings up to over 129,000 BTC.”

The last reason is because we are about to see Bitcoin reach its total supply, currently we just reached 19 million Bitcoins and with more and more companies and countries mining and buying Bitcoin I believe we will only experience one more halving before the price of Bitcoin explodes.

I think its also worth it to note that many people may still view Bitcoin as a fake non-tangible asset but in my opinion just because it is not tangible doesn’t mean it cannot generate value or be worth something.

We know this because the internet, just think about digital videos on Youtube or digital songs on Spotify or apple music. These are really digital assets or digital technologies that are generating value every second because people watch or listen or just use them and that generates value which generates dollars for artists and for the company not only through advertisements but also through just its overall use.

We have seen industries completely go completely digital and the effects of the internet as a whole and for people to say just because it’s not tangible means its valueless is idiotic thinking.

Lastly when it comes to Bitcoin the nerds believe these ‘Halving’ events are being very over looked because if Bitcoin actually does become a mainstream asset or currency or even a store of value these events will be known as the greatest financial events in history.

This is because it is when we will have seen the biggest gains in Bitcoin’s price.

When the last halving occurs if we even have another one left we will stop seeing these huge price pumps because the supply chain of Bitcoin will never be messed with again.

So it is better to participate and at least be apart of something rather than to just ignore it like how people ignored the internet when it first came out.

This is the next stage of the internet with Web3 and it is where we are finally seeing the internet of things IOT become the internet of value IOV because all the internet really does is generate more value for products, concepts, ideas or even movements.

When it comes to Ethereum people need to not view this as just a currency either, it can act as a currency or view it at just an asset only because it can hold value and goes up and down in value, otherwise it’s just a technology on the internet.

However Ethereum is much bigger than just a technology because it is and is going to continue to optimize and revolutionize the way the internet works.

To put it simply Ethereum is a network which allows businesses, people or whomever to create products that generate value on its network.

Ethereum is basically the internet but it or internet networks we use today but ETH will be much bigger and better from decentralization as well as because it’s making application development way more simple and its allowing for internet based products to be valued properly.

You see prior to companies like Youtube and Facebook people did not know how to value things on the internet and really we still don’t but the we do know that simple little things like all the websites for businesses or Applications we use to do our finances, watch videos, catch up with friends, connect, get jobs, and so on create value because they are allowing us to do things normally we could not do prior or without the internet.

Normally if something creates value too we end up making a company and perhaps going public with the company creating a stock. This is even bigger and better than that thought because what ethereum will really do is allow for better decentralization of internet…. true decentralization and allow all these current businesses to generate even more value using the internet.

You have to understand that this value inside the internet has always been here it just we could not access it or invest in it and now with these types of technologies or currencies, whatever you want to call it we finally can and its going to create a much better and more regulated internet. It will create an internet where we know how to value things, an internet where more than 90% of everything you see and read on it will be true and an internet that is more secure than anything you could ever imagine.

The simplest concept I often tell people is imagine a company like Spotify, Spotify has a stock and you can buy that stock if you like the company but imagine if you could invest in an individual artist or album because you know that album or artist is going to make a bunch of money or create a bunch of value.

Ethereum will allow for this maybe not directly using Ethereum but through a decentralized application on the Ethereum network.

Another way I like to explain this is by thinking about a company like Google much different than Spotify but not totally Im referring to internet based companies. Google has so many different products and solutions and basically what Ethereum would do is allow you to invest in one of the many google products rather than buying the stock which was about $2500 before the stock split which is had a 1-20 split recently but the point is Ethereum is creating a network or internet and a place where more value can be created.

Lastly Ethereum last year went through a major upgrade which capped its total supply and actually started decreasing supply.

This upgrade was called EIP-1559, this upgrade was huge because if you know enough about the Ethereum Network you would know in order to Buy or Sell tokens on platforms like Uniswap you pay very high gas fees which are paid in Ethereum basically what this means is every-time someone uses Uniswap and pay a Ethereum fee they burn or delete those tokens which lower and lower supply.

So if you know anything about finance or economics you would know when you lower supply the price rises and very soon we are about to experience Ethereum’s triple halving from the upgrade Ethereum 2.0 occurring.

Analyst say or computed that sell pressure dropped by nearly 30% with EIP-1559, meaning that there was a lot less Ethereum available on the markets for people to buy.

This means that as the upgrade continues to rollout and cause the supply to decrease we soon could see Ethereum’s price soar to prices much higher, much higher than even Bitcoin because you must remember that Ethereum is much more than just a digital currency, asset or payment system it potentially could be the next version of the internet.

The combination of the EIP-1559 upgrade that Ethereum has had and the move toward another upgrade Ethereum 2.0 will usher in the proof of stake Era which is represented by the triple halving. When this occurs the sell pressure will reduce by an estimated 90% and will be the equivalent of three Bitcoin halving’s in one.

This overall this means after this event occurs Ethereum will be more stable, much higher in price, lower network cost and transactions, allow more applications and DeFi products to access the network and actually work with real world applications.

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Many economists are saying that Powell is already feeling huge pressure to lift rates to levels that may send the economy into a recession.

This problem came from Americans voting in terrible politicians who have no concept of basic economics and believe money grows on trees.

The only way we can solve this problem is by using common sense and basic ethics when it comes to government spending and Defi, Bitcoin or Ethereum may be the first real way to get us back on track.

We must see real regulation of all exchanges, networks and more and give people the tools they need to properly explore DeFi and the Web3 world safely and securely.