{"id":395026,"date":"2019-09-12T12:00:14","date_gmt":"2019-09-12T12:00:14","guid":{"rendered":"https:\/\/uniquehot.com\/?p=395026"},"modified":"2024-06-11T13:25:20","modified_gmt":"2024-06-11T13:25:20","slug":"bitcoin-becomes-more-attractive-irresponsible-governments","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/bitcoin-becomes-more-attractive-irresponsible-governments\/","title":{"rendered":"Bitcoin to Boom As Macroeconomic Backdrop Worsens; Here’s Why"},"content":{"rendered":"

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<\/a>.<\/p>\n

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

Related Reading: Buy Bitcoin: Legendary Hedge Fund Manager Bashes QE, Low Interest Rates<\/a><\/h6>\n

While crypto investors are used to such moves, Bitcoin\u2019s strength comes as the macroeconomic and geopolitical stage has started to rapidly deteriorate.<\/p>\n

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<\/a> from the fiat system and government mismanagement.<\/p>\n

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.<\/p>\n

A Harrowing Macro Environment\u00a0<\/strong><\/h2>\n

Over the past year, the geopolitical and macroeconomic stage has rapidly deteriorated.\u00a0There is now over $17 trillion worth of\u00a0negative-yielding bonds (debt)<\/a>, most of which is high-grade; a dovish Federal Reserve that\u00a0recently cut rates for the first time since the Great Recession<\/a>; Brexit and other bouts of turmoil in the European Union; and currency crises in places like Venezuela, where Bitcoin is gripping these economies.<\/p>\n

Related Reading: Hong Kong Protests Continue Fueling Money Flight, Will it Affect Bitcoin?<\/a><\/h6>\n

But it’s getting worse.<\/p>\n

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.)<\/p>\n

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.<\/p>\n

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.<\/p>\n

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:<\/p>\n

“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.”<\/span><\/p><\/blockquote>\n

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Looking forward to spreading the good word! <\/p>\n

Registration here- https:\/\/t.co\/6d8UXb1xi1<\/a><\/p>\n

Hit me up if you'll be attending! https:\/\/t.co\/BOCGPuPtdh<\/a><\/p>\n

— Travis Kling (@Travis_Kling) August 28, 2019<\/a><\/p><\/blockquote>\n