Wall Street veteran predicts global phase of massive Bitcoin accumulation

  • The financial crisis will lead to an increased global demand for safe haven assets such as gold and Bitcoin.
  • Bitcoin accumulation phase will lead to a global race among countries to get more BTC.

In a recent interview for Blockchain Interviews, Max Keiser predicted a favorable scenario for Bitcoin adoption. The Wall Street veteran, host of the Keiser Report, and founder of Heisenberg Capital, Keiser believes that the current economic crisis accelerated by the outbreak of the Covid-19 pandemic will increase demand for assets that can protect people’s money against inflation such as gold and Bitcoin.

The Wall Street veteran said the U.S. Federal Reserve has created a “false top” in the traditional market by buying “hundreds and hundreds of stocks”. The financial institution buys these stocks by printing money. These securities are bought back by the companies at a “cost of 0”. Therefore, Keiser believes that the economic crisis will continue at least in the short term.

In addition, the Wall Street veteran said the financial decisions of industry giants like Warren Buffet should serve as a warning to other investors. According to Keiser, Buffet has bought Japanese stocks and gold to protect himself from the Fed’s inflationary decisions and “get out of the dollar”. However, Keiser pointed out a gold weakness that will favor Bitcoin:

You work through the numbers and there’s just not that much (gold) around. If you needed to buy 300 tons of gold you’re not going to find it, not at the current price. It’s going to be like ‘Okay I’ll sell you 300 tonnes of gold but I’m going to sell it to you at $25,000 an ounce, you can have all you want at $25,000.’

Along those lines, people, governments, and global financial institutions will prefer to adopt Bitcoin as a safe haven. Keiser stressed that Bitcoin’s intrinsic characteristics – portability, divisibility, resistance to censorship – will be another reason for the countries of the world not only to accumulate but to begin to mine Bitcoin. Then, a stage of accumulation will begin, and a “hash war” for more Bitcoin, similar to the space race that started the space program in 1960:

You’ll see countries start to accumulate Bitcoin and start to mine Bitcoin as well, and then they’ll start to subsidize the money they would be subsidizing the energy industry in and subsidizing that in the Bitcoin mining space. So then the game theory kicks in. So, for example, Iran right now has something like 2% of the global hash rate of Bitcoin…

Let’s say suddenly they’ve got 5% of the hash rate… So then America says ‘Wait a minute this is like the Sputnik moment. Iran could potentially be the richest country in the world if they have a significant piece of Bitcoin,’ and the price goes to $400,000 to compete with gold…so then they (America) start to subsidize their mining.

Accumulation race will boost Bitcoin price (BTC)

This second phase could be called, according to Keiser’s statements, “come out of the fiat madness”. As a final piece of advice for investors and “middle class” people, Keiser said there are no shortcuts. The Wall Street veteran finds the future economic outlook “difficult”. That’s why those interested in escaping inflation should start taking the first steps to buy Bitcoin. In the long term, Keiser believes that the cryptocurrency will be the best option as a safe haven:

Bitcoin is not only hard money but it keeps getting harder every week and every month because the hash rate gets higher and higher and higher. So with that higher security, higher hash rate, the price goes up. It becomes a self-fulfilling prophecy. So now you’re chasing the Bitcoin up through to a $100,000, $200,000 a coin to get the hard money because all your fiat money is collapsing.

About Author


Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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