Wall Street veteran prediction: demand for assets like Bitcoin will rise

Spread the love

In an interview for Blockchain Interviews, Max Keiser predicted an interesting scenario for Bitcoin adoption. The Wall Street veteran, host of the Keiser Report, and founder of Heisenberg Capital, Keiser believes that the current economic crisis accelerated by the outbreak of the Coronavirus pandemic will rise demand for assets that can protect people’s money against inflation like gold and Bitcoin.
The Wall Street veteran said the U.S. Federal Reserve has created a “false top” in the traditional market by purchasing “hundreds and hundreds of stocks”. The financial institution prints money and buys these stocks. These securities are bought back by the companies at a “cost of 0”. Hence, Keiser thinks that the economic crisis will continue at least in the short term.
Moreover, the Wall Street veteran said the financial decisions of industry giants like Warren Buffet should serve as a warning to other traders. According to Keiser, Buffet has bought Japanese stocks and gold to protect itself from the Fed’s inflationary decisions and “get out of the dollar”. However, Keiser pointed out a gold weakness that will favor Bitcoin:”You work through the numbers and there’s just not that much (gold) around. If you needed to buy 300 tons of gold you’re not going to find it, not at the current price. It’s going to be like ‘Okay I’ll sell you 300 tonnes of gold but I’m going to sell it to you at $25,000 an ounce, you can have all you want at $25,000.”
Along those lines, individuals, governments, and global financial institutions will prefer to adopt Bitcoin as a safe haven so the demand will rise. Keiser said that Bitcoin’s intrinsic characteristics – portability, divisibility, resistance to censorship – will be good reasons for the countries all around the globe not only to accumulate but to begin to mine Bitcoin. Then, a stage of accumulation will begin, and a “hash war” for more Bitcoin, similar to the space race that started the space program in 1960: “You’ll see countries start to accumulate Bitcoin and start to mine Bitcoin as well, and then they’ll start to subsidize the money they would be subsidizing the energy industry in and subsidizing that in the Bitcoin mining space. So then the game theory kicks in. So, for example, Iran right now has something like 2% of the global hash rate of Bitcoin…Let’s say suddenly they’ve got 5% of the hash rate… So then America says ‘Wait a minute this is like the Sputnik moment. Iran could potentially be the richest country in the world if they have a significant piece of Bitcoin,’ and the price goes to $400,000 to compete with gold…so then they (America) start to subsidize their mining.”
Accumulation race will boost Bitcoin
As a final suggestion for investors and “middle class” people, Keiser said there are no shortcuts. He finds the future economic outlook “difficult”. That’s why those who are escaping inflation should start to buy Bitcoin. In the long term, Keiser believes that the cryptocurrency will be the best choice as a safe haven: “Bitcoin is not only hard money but it keeps getting harder every week and every month because the hash rate gets higher and higher and higher. So with that higher security, higher hash rate, the price goes up. It becomes a self-fulfilling prophecy. So now you’re chasing the Bitcoin up through to a $100,000, $200,000 a coin to get the hard money because all your fiat money is collapsing.”
 

Leave a Reply

Your email address will not be published.