The Race to Zero: A Fiat Inevitability

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Some things in life are just inevitable: death, taxes, Carlton leading at half time only to lose, or Bitcoin investors seeing green if they hold long enough. In global economics, the latest inevitable shift is the slow, steady decline of fiat currency toward zero.

Today we are discussing the Iranian Rial (IRR). Fiat currencies are often put against each other when it comes to measuring value and performance. With the US dollar currently being the global currency, it is the consensus measuring stick. However, we know fiat currencies are highly manipulated. This occurs not only through central banks printing money but also via external sanctions that can effectively ostracise nations from the rest of the globe. We have seen the Yugoslavian Dinar, Iraqi Dinar, Syrian Pound, and Lebanese Pound all collapse following conflicts and US sanctions.

The Iranian Rial has been on a constant decline for decades, a trend accelerated by the current Middle East conflict. The Strait of Hormuz has essentially become a toll booth where Iran accepts alternative payments, including Bitcoin and Tether, while excluding the US dollar.

The table below highlights the staggering devaluation of the IRR against both the USD and Bitcoin:

The columns on the right tell the real story. The devaluation of both the USD and IRR has been exponential when measured against Bitcoin since its inception.

This is a story of what is happening to every currency; all are in a race to zero against one another. If you substituted the Australian Dollar for the IRR, it would tell the same story, just at a slower rate.

When you measure fiat against Bitcoin, there is only one path.

So the question I ask you as the reader, where are you going to store your wealth?

Stormrake Spotlight: Pax Gold (PAXG) ($4,522)

Source:https://www.tradingview.com/x/kfZg77hG/

As the week started trading again, PAXG has returned back into the demand zone after losing nearly 2% to kick off the week. The bears continue to mount pressure on the bulls’ last meaningful support before $4,000.

BTC/USD Key Levels and Price Action:

Source: https://www.tradingview.com/x/XknbyNCA/

For the first time since January, Bitcoin has touched $80,000. This is the battleground. If the bulls can sustain a break above it, then the push into the deeper $80,000 region should be on. The bulls have full control of this short term picture.

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*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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