Bitcoin News: Max Keiser not just bullishly believes that Bitcoin (BTC) will soon rally up from its bear market of 2018, he also asserts that the foremost cryptocurrency is set to become world’s reserve currency.
Despite the not so positive market of 2018, Keiser believes that cryptocurrency markets in 2019 will get their due recognition as alternatives for transmission and storage of value compared to the traditional options offered by banks and financial institutions. In his first program of the year, Keiser welcomed Stacy Herbert, who stated that the “crashes” served to build solid projects that would increase the value of Bitcoin in the future.
Bitcoin as a Currency
Keiser and Herbert further noted that Germany is creating an alternative to the SWIFT system in order to circumvent the US manipulation of the global economic system, as and when they exercise their power to “de-platform” the countries that do not align with its policies.
In the discussion, Herbert asserted that a replacement of SWIFT can possibly jeopardize the hegemony of the dollar. In such scenario BTC represents an important alternative, thus its potential is much higher than current prices reflect:
“ A replacement to that [SWIFT] begins the end of the US Dollar hegemony. Bitcoin also emerged in 2009, and that is starting to take over and get bigger despite de price crash… The prices are down … But in terms of where Bitcoin is going, you and I have been involved with this space since 2011, we’ve seen it crash 94% in 2011, and it crashed something like 88 to 91% in 2013, 2014, 2015… So we’ve seen a few of these crashes, but what I do know from experience … In the past, during these previous crashes, a lot of building took place during that time, robust companies were built. They were no longer distracted, engineers are not distracted by price increases of 10, 20 or 30% a week”
Bitcoin – the new world reserve currency
Keiser also noted that BTC’s internal architecture keeps its far away from any type of political or financial manipulation. He asserted that the constant invariable supply of new Bitcoins every 10 minutes enables the token with greater credibility and solidity for those who do not trust the traditional system anymore. Which is precisely why the adoption of cryptocurrencies would increase and BTC could become the new world reserve currency:
“Well, the three prices or numbers that you should associate with Bitcoin: There’s price, then theres hash rate, then there’s the difficulty adjustment. Those are the three numbers that kind control the protocol in a lot of ways and price is the least significant of those three. Hash rate and difficulty adjustments are also part of the protocol, but the one number that is never changing and never varies is that every 10 minutes new coins are created and that emission schedule of coins coming on every 10 minutes makes Bitcoin the Central Bank of the World with the most rock-solid monetary policy there is in the world”
To finish off his argument, Keiser pointed out the ways BTC could provide a sense of stability to the financial world in the future. According to the expert, BTC’s adaptation to its variable in order to have a steady supply of new tokens is more secure and less prone to manipulative than the way banks play with monetary policies. For Keiser thanks to Bitcoin it is now easier to imagine a “dedolarized” world:
“That’s why when Saifedean Ammous wrote books like The Bitcoin Standard: The Decentralized Alternative to Central Banking, he is talking about Bitcoin competing with Central Banks and the way it does compete with Central Banks is that it has the hardest money ever created, and it emits those coins every 10 minutes … and that is more and more as we head into this fractured world and this deglobalized, dedolarized world, a reserve currency will, and it will invariably turn to Bitcoin”
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