• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
Nexo Logo

Bitcoin to Boom As Macroeconomic Backdrop Worsens; Here’s Why

Nick Chong by Nick Chong
3 years ago
in Bitcoin
Reading Time: 3 mins read
Advertisement

For most of its life, Bitcoin (BTC) was seen as a volatile gamble that was most likely to fail. Just look to the countless obituaries detailing the “death” of the cryptocurrency on this site.

But, this narrative has started to change. Year to date, Bitcoin has gained a jaw-dropping 150%, shocking investors the world over.

Related Reading: Buy Bitcoin: Legendary Hedge Fund Manager Bashes QE, Low Interest Rates

While crypto investors are used to such moves, Bitcoin’s strength comes as the macroeconomic and geopolitical stage has started to rapidly deteriorate.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

This dichotomy has resulted in many economists, investors, and even politicians starting to give Bitcoin a nod as a store of value and a safe haven. Or, to put it more bluntly, the cryptocurrency might be a much-needed escape hatch from the fiat system and government mismanagement.

Indeed, BTC was created by a pseudonymous individual, is secured by a global group of miners, and is backed by no government, traditional finance system, or common entity. And, Bitcoin was released in the wake (and seemingly as a result) of the 2008 Great Recession.

A Harrowing Macro Environment 

Over the past year, the geopolitical and macroeconomic stage has rapidly deteriorated. There is now over $17 trillion worth of negative-yielding bonds (debt), most of which is high-grade; a dovish Federal Reserve that recently cut rates for the first time since the Great Recession; Brexit and other bouts of turmoil in the European Union; and currency crises in places like Venezuela, where Bitcoin is gripping these economies.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!
Related Reading: Hong Kong Protests Continue Fueling Money Flight, Will it Affect Bitcoin?

But it’s getting worse.

In August, you saw the Argentinian Peso collapse by 26%, while its equities market when into a freefall. Just look to Argentina’s century bonds, which currently trades at 38 cents to the dollar, falling from around 80. (Bitcoin, by the way, is trading at a premium in Argentina.)

Denmark recently issued a mortgage that had a negative 0.5% interest rates, meaning that you’re borrowing money to buy a house to then pay back the bank less than the principal.

Siemens issued a two-year note with a negative 30 bps effective yield and a zero interest rate coupon; the country of Germany issued an 800 something million Euro worth of a 30-year bond with an effective yield of negative 11 bps.

All this, according to Travis Kling of Ikigai Asset Management, will only be beneficial for Bitcoin. At Bitcoin Is _, an educational event hosted by the LA Chargers’s Russell Okung, Kling stated:

“Bitcoin is currently a risk asset. But it’s a risk asset with a specific set of investment characteristics that will only become more attractive the more irresponsible monetary and fiscal policy becomes.”

Looking forward to spreading the good word!

Registration here- https://t.co/6d8UXb1xi1

Hit me up if you'll be attending! https://t.co/BOCGPuPtdh

— Travis Kling (@Travis_Kling) August 28, 2019

Why It’s Bullish for Bitcoin

Why? You ask. Let us explain.

In all of the above scenarios mentioned, Bitcoin can be used as a way out.

Instead of “investing” in negative-yielding debt, you could purchase an asset that has zero yield, this being gold or Bitcoin; Instead of holding your wealth in devaluating fiat currency, you could buy a store of value like Bitcoin; and so on and so forth.

You see, unlike fiat monies, Bitcoin is anti-fragile, decentralized, non-sovereign, uninflatable (actually deflationary), immutable, uncensorable, borderless, permissionless, and programmable. All these characteristics give it the ability to be used as a “safe haven” or “store of value” in tumultuous times.

You don’t have to take this writer’s word for it.

Raoul Pal, the former head of Goldman Sachs’s hedge fund sales division in Europe, explained in the context of the expectation of rates going negative in the U.S. and the macroeconomic backdrop turning tumultuous that investors should purchase bonds, dollars, diamonds, and, of course, Bitcoin. Pal has claimed that Bitcoin is the asset to invest in, as it effectively is an “option on the future financial system”.

Featured Image from Shutterstock
Tags: bitcoincryptocurrencyTravis Kling
Tweet123Share252ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

bitcoin

Why Rich Dad, Poor Dad Author Will Wait For Bitcoin To Drop To $1,100 Before Buying More

13 hours ago
Bitcoin And USDC

USDC Exchange Reserves Rise As Investors Escape From Bitcoin

16 hours ago
Bitcoin network

Bitcoin Enters Hibernation Mode As Network Activity Lulls

18 hours ago
Fed Announces Inflation Warnings As Bitcoin Whales Remain In Wait Mode

Fed Announces Inflation Warnings As Bitcoin Whales Remain In Wait Mode

22 hours ago
Mining Operators Fret As Bitcoin Looses Ground, What Lies Ahead For The Mining Community

Mining Operators Fret As Bitcoin Looses Ground, What Lies Ahead For The Mining Community

22 hours ago
Bitcoin

Bitcoin Slides Under $20K – Another Collapse In The Offing?

22 hours ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
BC.Game

BC.Game

Review · Visit
Punt Casino

Punt Casino

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
BC.Game

BC.Game

Review · Visit

U Promise Me: The Digital Promise Platform

July 1, 2022

XT.com Lists Land of Fantasy (LOF) With USDT Trading Pair

July 1, 2022

LYOTRADE Launches Crypto Loans—Get USDT and Win Against Volatility

July 1, 2022

Torches Genesis NFT Launching, Win Torchlight NFT to Unlock IDO Allocation

June 30, 2022

Crypto News Flash: Best Meme Coins to Explore in Bear Market 2022 – Floki Inu (FLOKI), Akita Inu (AKITA) and RoboApe (RBA)

June 30, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.