World’s Economies Will Seek Haven In Bitcoin, Say Max Keiser

World's Economies Will Seek Haven In Bitcoin, Say Max Keiser

Source: Keiser Report

After bitcoin’s rise over the weekend, players get new hopes. Moreover, the second wave of COVID threatens fiat finance.

Popular Max Keiser stated in his Keiser Report that the world’s economies will seek haven in bitcoin as fiat currencies fail on a global scale. The traditional safe-haven asset, gold, is no longer able to meet demand; its rate may turn out to be even more volatile than the bitcoin rate. Those who work with numbers will want to buy gold at market price, but sellers will offer a different price to take advantage of the situation. As a result, the governments of the world are forced to pay attention to bitcoin and cryptocurrencies. According to Max Kaiser, central banks will reason like this:

“Well, this Bitcoin has been around now for 11-12 years. It’s 99.9% fail-proof and it’s got everything we want in hard money.”

Kaiser predicts that economies will begin to accumulate bitcoin assets as they accumulate gold reserves. For this, bitcoin mining will be subsidized. And this process will follow a chain because no country wants to stay out of the game. At the same time, such a race will affect the price of BTC, it will begin to soar fast. Meanwhile, the hashrate is constantly growing, today it is already 100 quintillion calculations per second for bitcoin. Security is improving, which means that this money is becoming more and more hard. Thus, the program of “self-fulfilling prophecy” is realized. And the harder bitcoin is, the weaker fiat currencies will be. The process will go on increasing.

An indirect confirmation of Max Kaiser’s words is the post of Raoul Pal, co-founder, and CEO of Global Macro Investor. Pal announced that he had updated his portfolio and transferred more than half of his assets to BTC. He believes that bitcoin will be the most profitable asset of the next decade. But at the same time, the top manager does not advise following his example. He warns that the cryptocurrency market is still highly risky. No one can guarantee that the BTC price will not drop to zero one day.

Raoul Pal specifically emphasizes that in this market he does not use leverage – a mechanism that can increase income but increases the risks too. Trading with leverage is not for beginners and not for those who invest their last money in the hope of getting rich. He underlines that he can deal with a 50% drawdown. This does not scare him, since he has an “income stream”. Raoul Pal said earlier that, in his opinion, bitcoin is on a long-term trajectory towards a price of $ 1 million.