After shifting Westward since the beginning of the year, when Bitcoin's price movements were primarily tied to Chinese influence, the crypto-currency has not only reached a new all-time high on March 2, but it has also achieved parity with the current price of gold.
Diverging together at $1236 apiece just minutes ago, the alternative choices to holding fiat currencies are now justifiably vying for the market share of individuals around the world who experiencing severe crises in their own economies and local currencies.
Global currency troubles:
Venezuela: The Central Bank of Venezuela says the country is down to just $10.5 billion in foreign reserves. At the same time, Caracas has to meet debt obligations of $7.2 billion this year.
Greece: Now, fresh tensions over the country’s bailout are putting that progress at risk. About 1.3 percent of deposits were pulled from the banks in January, while bad loans crept higher, an increase Bank of Greece Governor Yannis Stournaras blamed on borrowers using the deadlock with creditors as an excuse to avoid making their payments.
Greek officials are meeting in Athens this week with representatives of the euro area and International Monetary Fund to set out the policies Greece must undertake to unlock more loans. The government foresees an accord in March or early April, but the scale of pending issues raises concerns they may be politically hard to sell at home.
U.S.: On March 15, the latest suspension expires and the debt limit will likely reset a little north of $20 trillion.
If Congress has not voted by mid-March to either extend the suspension or raise the ceiling, Mnuchin will have to start using special accounting measures just to keep paying the country's bills without violating the borrowing limit.
With the gold price currently being held down through the Comex and London derivatives markets, the likelihood of Bitcoin's price soaring well past that of the yellow metal is very real, especially as the Federal Reserve has come out in recent days almost assuring the markets of another rate hike. And this will only add more fuel to the crypto-currency's legacy as it officially becomes one of the world's most popular alternatives to holding one's wealth in any sovereign currency.