Keiser on bitcoin
Around six months ago, goldbug and bitcoin evangelist Max Keiser gave an update on his thoughts for the virtual currency. The interview makes some interesting and very valid points that will be encouraging to hodlers riding out the bear market.
Back in April, when the bear market was in full swing, Bitcoinist spoke to celebrated bitcoin bull Max Keiser. As BTC seems to be bottoming out and a new era dawns, we thought it worth returning to the interview and pulling out some key points. Keiser has been a long-term bitcoin supporter, recommending it to his Keiser Report audience since 2011, and many of his conclusions are valid on that timescale as well as for the last six months.
In our highly indebted world, in which mounting debt is the only thing that prevents economic collapse, Keiser makes the very good point that there is not only room for a deflationary asset that encourages saving – it’s actually critical.
Bitcoin fulfills Aristotle’s 4 conditions of money nicely, as does Gold (that he called the perfect form of money). In terms of how economies are grown, I would repeat what I’ve said on Keiser Report many times:
‘You can’t have Capitalism without capital. And you can’t have capital without savers, and you can’t have savers without an incentive to save.’
Around the world today, with interest rates hovering around zero, the incentive to save is also zero, and so economic demand has to be manipulated by turning central banks into toxic, debt-waste dumps. Malinvestment and horrendous capital allocation trends – due to the absence of genuine capitalism – has created the currently unsustainable bubble-economy of artificially inflated stocks, bonds, property, and Art.
Keiser offers a couple of other insights with which we agree; for example, the fact that bitcoin futures did not cause the crash from $20,000. Their launch simply coincided with the peak of a market that was already severely overbought and due a major correction. He has no love for Bitcoin Cash, which he rightly describes as ‘an altcoin that is deceptively using the Bitcoin name and a dodgy website’. And he shares our opinion on the mainstream economist with vested interests, who can’t even entertain the idea of bitcoin ‘because it challenges every page of every textbook of every economics school they’ve ever attended, read about, or taught’.
Keiser is a long-term bull on bitcoin and predicted $100,000 prices back in 2011. He stands by that, thought doesn’t give a specific date. The run-up, he says, will be fuelled by big money and institutional money, probably including the likes of George Soros and the Rockefellers, and will be helped by the next halving, when supply will dry up even further.
‘My only Bitcoin prediction is that the price will top $100,000. As far as timing, extrapolate from current trends and you get a sense of when.’
By our reckoning, the stars are aligning for $100k in 2020 or 2021, but if it’s a year or so later, we can handle that.
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