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Finance Expert: Gold Bull Market is Here But Bitcoin May Replace USD as Reserve Currency

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As economic and trade tensions escalate around the world, eyes are turning to safe haven assets beyond the scope of state manipulation. This year’s gold market is proof that sentiment is already starting to shift away from fiat and one industry expert things that Bitcoin could eventually replace the USD as a global reserve currency.

Gold Hits New Six Year High

When central banks start messing with interest rates and presidents threaten to devalue currencies, fear and panic starts to set in. In an interview with RT, finance and commodities expert Craig Hemke spoke to Bitcoin bull Max Keiser about the current sorry state of affairs.

This week gold prices hit a six year high of $1,540/oz according to Goldprice.org. This marks a gain of 20% this year and a return of a bull market following five years of consolidation. He told the outlet;

“2019 is looking a lot like 2010 with the Fed not raising rates but cutting rates as we slip into recession. More negative interest rates are driving gold to its best year since 2010 and now silver is starting to pick up too,”

What applies to gold can also be applied to Bitcoin which is also considered a safe haven asset by many. Hemke added that investors are starting to turn their back on USD and look towards gold for investment so owningsome is a no-brainer.

Concerns about the FED are escalating with many such as ex-congressman Ron Paul calling for an end to the monetary madness. Just yesterday the libertarian tweeted that the FED should not exist, adding;

“By creating money out-of-thin-air, it destroys the value of our earnings and purchasing power. By manipulating interest rates, it creates manic booms and bubbles in the economy, which must (without exception) become painful economic busts.”

Bitcoin As New Global Reserve

According to the London Economic, citing data from trade platform eToro, investors are increasing positions in gold and Bitcoin. An analysts from the international trading firm confirmed that users were opening more gold and Bitcoin positions on news reports on the escalating US/China trade war.

Adding to this sentiment, Hemke told Keiser that the days of dollar dominance are numbered. The US has had the privilege since the end of WWII and before then it was the British pound. Now that both currencies are getting battered it is time for a replacement.

Speculation on what will replace the USD as a global reserve currency has been ongoing for some time. Bank of England boss Mark Carney seems to think crypto assets such as Bitcoin could be a contender. However Hemke concluded that they need to evolve significantly in order to take this mantle.

He also noted that Bitcoin’s market cap was a fraction of gold’s and it has a long way to go in terms of price.

Sourced by World Ethereum News

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