Bitcoin, THE reference? – Until recently in the history of mankind, almost all of the world’s currencies were backed by the millennial stability of gold. Since August 15, 1971, currencies have been wandering in a fluctuating uncertainty, the floating exchange rate regime. But perhaps a new monetary standard is about to be born from the ashes of the golden metal: Bitcoin (BTC).
A Bitcoin standard, after the famous Gold Standard?
Jeff Booth is the author of the book „Tomorrow’s Value: Why Deflation is the Key to an Abundant Future“ (published in January 2020). He is convinced that the massive monetary impressions of central banks will eventually kill fiduciary currencies, based on trust in the issuing states.
Crisis and magic money – helicopter drop
In a recent interview with Cambridge House International, Jeff Booth explains why he thinks Bitcoin could become the world’s reserve currency:
„Bitcoin is becoming a very good choice to protect one’s wealth because it cannot be confiscated (…). I think Bitcoin will continue to grow (…) if it continues to grow like this, I think that one day other currencies will be backed by Bitcoin (…). I think it is very likely that Bitcoin will become the new reserve currency of the world. »
Bitcoin, the ultimate cure for future hyperinflation?
With the state printing presses running at full speed – led by the U.S. Federal Reserve (FED), Jeff Booth details what he sees as the logical next step:
„All [monetary] printing will directly enrich asset prices and is stolen from the real economy…. What will follow is MMT (modern monetary theory), helicopter money (printed money distributed to individuals) and all the rest. Once the FED has lost all its credibility, it is the royal road open to inflation (…). »
Although he personally owns both gold and bitcoin to diversify and not put all his eggs in one basket, Jeff Booth still prefers the last of the safe havens:
„I’m much more optimistic about Bitcoin for a variety of reasons. I think it could be the new gold (…). Bitcoin works through the network effect (…) when currencies collapse and security becomes an issue, the mobility of gold becomes problematic, while the mobility of Bitcoin becomes an overriding advantage. »
To make matters worse, Jeff Booth explains that with the arrival of the Covid-19 since the publication of his book (in January), the situation has accelerated sharply. This brings the spectre of widespread hyperinflation for fiat currencies even closer.
Will Bitcoin eventually play a greater role in the global economy? Will gold be dethroned as the world’s currency reserve? It is still too early to say, but the unbridled monetary policies worry some commentators who are usually reluctant to engage in catastrophic diatribes.