What do the experts think about the use of Bitcoin in a crisis scenario? Analysts such as Caitlin Long, Mike Novogratz and Robert Kiyosaki criticized the Fed’s liquidity measures. Others don’t like Frances Coppola so much.
In early March, the World Health Organization said that we were facing a global pandemic of the COVID-19 coronavirus, which was followed by a significant decline in world markets, including the cryptocurrency market and decline, of around 50% worth Bitcoin.
The picture did not change too much in the light of the following events: the increase in the infection and deceased rate, the health crisis, growing nerve buying, isolation measures and the announcement of an upcoming global financial crisis.
Given this scenario, governments and central banks around the world have taken measures to mitigate the economic impact of the crisis. The pressure on money, the lowering of interest rates and the rescue of companies are some of the measures that the United States government has taken. Measures that have not gone unnoticed by many experts and analysts and which assume that the current crisis will implode the financial system as we know it.
Given this dark picture, various experts and analysts have recognized the value of digital assets such as Bitcoin before a context of global crisis. What do the experts think about using Bitcoin in a scenario of financial recession? DailyBitcoin collected the most relevant opinions in the past few weeks.
Experts comment on the use of Bitcoin in the current crisis
“”The crisis will make Bitcoin more relevant“”
In a recent interview during the Podcast by Anthony PomplianoVenture capitalist Chamath Palihapitiya said a crisis like the current one is needed Bitcoin a stronger and more relevant currency. Chamath Palihapitiya is the founder and CEO of Social capital and he was one of the first executives from Facebookwhere he worked for 4 years.
According to the venture capitalist, the use of Bitcoin As a speculative instrument, it is still too dominant to be called a reliable asset. However, its true value as a safe currency could emerge in situations of economic crisis such as the current one, in which fiat money is at risk.
In the same line, Palihapitiya felt that it was early to talk about it Bitcoin as a replacement currency for the US dollar or other fiat currencies in a possible restructuring scenario of the financial system. In this context, he stressed the need for the cryptocurrency to overcome the current speculative momentum.
“”This will be Bitcoin’s year“”
Michael Novogratz, former head of the hedge fund Fortress Investment Group and founder of the cryptocurrency bank Galaxy Digital, meant recently that assets like gold and Bitcoin They could help people protect themselves from the recession and a possible depreciation of the dollar. Novogratz believes the main cryptocurrency would be specifically designed for crisis situations like the current one:
“”Bitcoin will continue to be volatile in the coming months, but the macro backdrop is why it was created. This will and must be Bitcoin’s year. “
In this line of ideas, the founder of Galaxy Digital warned “We have a global money printing orgy in the works. “ Novogratz’s comments came shortly after President Donald Trump announced $ 1,200 stimulus controls for U.S. citizens; Part of the FED’s $ 6 billion push. Japan has also announced similar $ 1 trillion stimulus measures to deal with the crisis.
Novogratz is a well-known proponent of, especially in the crypto community Bitcoin, characterized by predictions – sometimes absurd – bullish for the currency. It was not very different this time and he was confident that the value of the coin would double this year and reach USD 20,000.
“The new world is getting better, fairer and more stable! THE OPPORTUNITY PREFERS THE PREPARED MIND ”.
Wall Street veteran Caitlin Long also criticized the Fed’s liquidity measures. In a Tweet March 23 emphasized that the agency’s decision to extend QE to an unlimited amount indicated that “The last remnant of US capitalism had died“”
Monetization of the Fed’s debt is now unlimited. The nationalization of the US capital mkts, which began in 1968, has now been completed. This result was predictable (the virus was just the trigger). The Fed’s balance exceeds $ 10 trillion this weeka.
A few days earlier in one Thread of TweetsThe severity of the country’s central bank debt had long been explained. He closes the thread and sends a positive message because after the pandemic he says: “The new world is getting better, fairer and more stable! THE OPPORTUNITY PREFERS THE PREPARED MIND ”.
Long is an enthusiast of Bitcoin longstanding. Financial Veteran earlier this year announced plans to open the first crypto bank in the United States Avanti.
During one Podcast Long had commented in early March as part of the discussion on using Bitcoin as a haven – that the “I will pay“They are generally the first to be sold because they are not tied to a leveraged financial structure. However, Long was optimistic about using assets that were not tied to the financial structure – gold, real estate, cryptocurrencies – to secure the value. He also took the opportunity to highlight this the value of Bitcoin In a crisis scenario, it offers a secure and stable network and not the price.
“”QE will strengthen Bitcoin“”
The economist, writer and employees of CoindeskFrances Coppola explained in a current report how the Federal Reserve’s quantitative easing (QE) measures could be beneficial for digital assets.
“”What QE does is the general increase in asset prices, and this would include new alternative assets like Bitcoin“”
QE is a monetary policy tool that central banks use to boost the economy. In March of this year, the Fed announced that it would activate a QE program that would include the purchase of $ 500 billion of US government bonds and $ 200 billion of mortgage-backed securities.
The FED activated a QE in 2008, followed by other central banks around the world. During this period, gold rose, major equity indices recovered, global private wealth grew, and FED debt doubled. In the article, Coppola was not as strict with this monetary measure, which some supporters criticized Bitcoinwho argue that QE leads to hyperinflation:
“”There is absolutely no evidence that QE causes hyperinflation. The way that QE works is to push investors into higher-yielding assets. Bitcoin is incredibly volatile, but it performs better. So what you really get are asset bubbles, including Bitcoin“”
“Bitcoin is people’s money.”
The “Guru” of Finance and Author of bestseller “”Rich father, poor father“” Robert Kiyosaki has also joined the list of financial analysts who recently highlighted the benefits of Bitcoin before a scenario of financial recession. Kiyosaki recently hit his Twitter save in gold or Bitcoinwhich he called “people’s money“”
Similar to Long and Novogratz’s comments, the recognized author criticized the US Reserve’s measures to generate liquidity. In this regard, he found that the agency prints “fake dollars“And this saving in that currency would be a”crazy thing“”
In a lesson explaining the problem of US debt, he suggested that his followers buy it Bitcoin As an effective asset to secure value against the financial crisis:
The 1971 dollar became DEBT. Debt makes the RICH richer. Debt impoverishes the poor and the rich. If the ratio of debt to US GDP. USA is 60%, the world is fine. Today the US debt to GDP rate is 110% and continues to rise. USA is bankrupt. Debt, the dollar and greed are destroying life and the global economy. Very sad. Protect gold, silver and bitcoin.
This week he said he was planning to buy Bitcoin.
“People will turn to Bitcoin [durante la crisis]””
Recently, Max Keizer, the journalist and former realtor in the United States, said people will turn Bitcoin as an easily accessible asset compared to traditional safe havens like gold. The opinion of the popular host of the program Keizer report Kiyosaki repeated, calling the asset “people’s money”. Similar to other top analysts, he also predicted that people would turn to him Bitcoin Seek refuge from the potential economic damage to the coronavirus crisis.
In a recent episode of his program, the journalist spoke to Simon Dixon, CEO of BnkToTheFuture. “”I don’t want to be dramatic, but this is a global restart in the financial system“The CEO commented on Keizer during the interview.
A few days earlier, Keizer had one Program to discuss the pandemicthat the scenario of the financial crisis would stimulate the search for alternatives to preserve value. According to the journalist, gold would be the epitome of a safe haven for billionaires. while the rest are starting to turn to digital currencies like Bitcoin.
“”I’m assuming – and this is not only the newest use case, but also the newest irony – that once people find that they can’t get gold, people will flock to Bitcoin“”
“I am optimistic about Bitcoin. We run the risk of losing the entire system …”
The Ex-executive of Goldman Sachs, Raoul Pal He was also optimistic about cryptocurrencies as a savings / investment alternative. Former hedge fund sales manager for Goldman Sachs In Europe, he affirmed that the global economy would go through a complex scenario of difficulties that would affect the new generations significantly.
Pal also announced that he is preparing for a complete change in the financial system as we know it. The expert, who has been in the industry for almost 30 years, admitted that he will transfer 25% of his assets to the next 12 months Bitcoin. It will also diversify its capital between gold, cash and gold “Business opportunitiesHe commented.
“”I cannot express how optimistic I am with Bitcoin. At the moment there is a risk that we will lose the entire system. I know that they will find a way to save him, but all trust is lost. Golden boys / girls – you’ll be fine too. It’s just that BTC has a bigger advantage by far, but it’s riskier than gold. “.
Links of interest
Billionaire Tim Drapper: “People will move to Bitcoin after the COVID 19 crisis. “
Steve Wozniak, Apple co-founder: “Bitcoin becomes the world’s reserve currency“”
Article by Hannah Estefanía Pérez / DailyBitcoin