The fever continues to ferment, with its price reaching a new high of $106,648 today. At the same time, more and more countries and listed companies are considering or have already included in their asset reserves. All signs seem to be reminding the world that the revolution has begun.
Regarding this, Chen Chung, the former Premier of Taiwan and the Chairman of the New Generation Financial Foundation, published an article on today (16th) with the title 'The New Generation Financial Game: The Situation is Stable'.
Chen Chung: Will the Central Bank Governor Buy ?
The article immediately asks, "If you were the central bank governor of a certain country, and you saw the following three news items in the short term, would you consider them conspiracy theories? Just a farce? Remain inactive? Or directly get involved in layout?"
- The president-elect Trump advocates establishing a reserve, and the United States already has about 200,000 held by the state due to confiscation, and Senator Lummis has proposed legislation to require the purchase of 1 million within five years.
- Russian President Putin, amid the state of emergency in South Korea, suddenly issued a statement supporting the use of to replace the US dollar as the global reserve currency to stabilize the economic order, without discussing the East Asian situation.
- In the second half of the US election, has risen 45%, and this month it has even broken through the $100,000 mark (it then plummeted to $95,000 on 12/10).
Chen Chung stated that after seeing the tight positions of the top 10 VASPs, and the rumors that developing countries have already laid out , friends can't help but speculate that these major countries like the US and Russia may have already bought a certain amount of . If you look back at the above three news items, these rumors and speculations do not seem to be unfounded.
The Digital Generation Does Not Play the Old-Fashioned Financial Game
Chen Chung then stated that the New Generation Financial Foundation he is associated with has written at least 10 special articles discussing since 2014, generally arguing that has no intrinsic value, has large price fluctuations, cannot be used as a payment tool, and is not a currency, at most just a commodity that can be invested in. However, as long as people continue to buy and hold it, will continue to exist.
Furthermore, the article points out that in the saturated market of traditional financial games, the young people of the digital generation are unfamiliar with and do not prefer these types of games, and naturally turn their attention to the emerging financial assets with a home field advantage (technology). Regarding this, Chen Chung stated:
The government should pay attention to the awakening of the class consciousness of the younger generation, and avoid the emergence of new class struggles.
However, Chen Chung then criticized that government agencies have always failed to recognize the social impact of , and cannot even settle the positioning of virtual asset platforms and trading businesses (VASPs).
Will Become the 'Digital Gold'?
The article then points out that in the past decade, the global population has soared from millions to 560 million, and the price has risen from $320 to nearly $100,000 recently, a huge change in value that is inseparable from global inflation and QE.
Chen Chung then stated that central banks have been indifferent to global inflation in recent years, which may cause asset shrinkage:
The viewer may be curious about how our central bank has responded to these recent developments? From the data, it can be seen that the appetite for gold has been lacking in the past six years (the fund's article "The City is Full of Golden Armor" on 2023/5/8), and is probably also looked down upon, but if there is no sense of global inflation, the focus is still on traditional reserve items, then the assets are at risk of shrinkage.
Regarding this, the article mentioned that Fed Chairman Powell recently stated that is not a competitor to the US dollar, but can be said to be a competitor to gold. Similarly, the US Treasury Department stated in a research report that " is like digital gold", almost completely echoing Powell's previous remarks. If the topic is extended, these two statements seem to be reserving space for the implementation of Trump's reserve strategy next year.
In view of the recent statements from the US government, Chen Chung stated:
Considering the QE and inflation trends over the past 10 years, if you were the central bank, what strategy or action would you take? Would you diversify the issuance of reserves? To buy or not to buy, that's the question!
