Entrepreneur and author Jeff Booth has predicted a grim future for fiat money, expecting it to fail as central banks keep printing money. Foreseeing an unavoidable, severe depression and banking failure, he thinks bitcoin will become the world’s reserve currency and national currencies globally will be pegged to it.
In an interview with Cambridge House International, he discussed the current economic situation and why he is more bullish on bitcoin than any other asset class. He began by the consequences of what the Federal Reserve is doing right now. “All of the printing is going directly into asset prices and it’s being robbed from the greater economy,” he explained. “What’s coming next is MMT, helicopter money, and everything else. And once the Fed loses its credibility then all bets are off in inflation so the Treasury essentially will become the Fed and print money and can distribute that money to [the] population, and then you are going to lose currencies all over the world.”
Additionally, Booth predicts that “interest rates are going to continue to go down until currencies fail,” highlighting that central banks are artificially keeping interest rates low. The Federal Reserve recently pledged to keep interest rates near zero for several years, after it announced a policy shift to push up inflation.
To preserve wealth in this environment, he diversifies and cautioned against putting all wealth in just one asset class. While having both gold and bitcoin in his investment portfolio, he said, “I am much more bullish on bitcoin for a variety of reasons. I think it could be the new gold … bitcoin works on a network effect.” The popular author elaborated: “[Bitcoin] should keep on growing and I think one day other currencies will be pegged to bitcoin … I think it’s highly likely that bitcoin becomes the reserve currency.”
He said that “Gold is valued where it is for the exact same belief that it will be pegged to national currencies,” adding that bitcoin is a much better bet than gold, and more importantly, everyone’s portfolio “must” include bitcoin. In addition, “When currencies break and safety becomes an issue, portability of gold is really difficult,” he warned, adding that “The portability alone of bitcoin for safety reasons becomes paramount.”