Venture Capitalist: Bitcoin is the Single Best Hedge Against Traditional Finance

Tony "The Bull" Severino

6 years ago

3 mins read

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As the entire world braces for a potential economic crash in the face of looming trade wars, inflated fiat currencies, and booming debt, Bitcoin is showing signs that it is living up to its expectation that it could become an economic hedge due to its scarcity and deflationary design.

It’s even showing a direct correlation to other safe haven assets such as gold, the Japanese yen, or the Swiss franc. But it may even be a better hedge than that. In fact, one venture capitalist says that Bitcoin is the “single best hedge against the traditional financial system.”

Bitcoin: Best Economic Hedge Or Money Under the Mattress?

Since the start of 2019, Bitcoin has brought investors over 300% gains and is the best performing asset of the entire year thus far. It rose from bear market lows at $3,200 to go on yet another parabolic run towards $14,000 where it was stopped abruptly and is currently consolidating under resistance – a potentially bullish period of reaccumulation following a powerful markup phase.

The move could be being driven by Bitcoin finally being recognized by institutional investors and the global investing community for its potential use as an economic hedge. And with a trade war between the United States and China putting pressure on the already fragile financial fabric of the global economy, the biggest economic crash the world has ever seen may be in the future.

Thus, Bitcoin is beginning to shine.

“It’s the single best hedge against the traditional financial system” @chamath on appeal of bitcoin #btc pic.twitter.com/gIkB38B4X0

— Squawk Box (@SquawkCNBC) July 9, 2019

While speaking on CNBC’s Squawk Box, venture capitalist and CEO of Social Capital Chamath Palihapitiya told host Joe Kernen – who recently has come around to Bitcoin himself – that Bitcoin is the “single best hedge against the traditional financial system.”

Kernen concurred, saying that he believes that the distributed ledger technology Bitcoin is based on “imbues more inherent value on something than a government does.”

Palihapitiya’s comments after that aren’t the most appealing for Bitcoin, as he calls it the “schmuck insurance you have under your mattress.” It’s not exactly flattering for Bitcoin, but the analogy makes sense.

People often stick money in or under their mattress for safe keeping just in case. Bitcoin sitting in an encrypted wallet online is the digital equivalent of the physical act of storing money in a mattress.

Bitcoin is currently trading at $12,500 and struggling with overhead resistance. A break above the previous high of $13,800 would likely mean a run for a new all-time high, while a break below $10,000 could cause concern over the structure of the next bull market. Either way, these are critical times for Bitcoin and the narrative of it becoming a global economic hedge.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.