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Good For Bitcoin? Fund Manager Says Central Banks Have Gone “Insane”

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Despite the recent lull in the Bitcoin (BTC) price, it is clear that the cryptocurrency market is back in another uptrend. Year to date, BTC has rallied some 200%; altcoins are up a similar amount in the same time frame. This is great, but it may just be about to get better for this asset class.

Central Banks Are Digging Their Own Grave

Bitcoin was born to take down central banks. While Satoshi Nakamoto, the creator of the project, never used that exact wording, many involved in the industry have extrapolated the protocol itself and some of his writings to determine that he isn’t a fan of fiat finance.

The nail in the coffin of this theory: the article headline embedded in the Bitcoin Genesis Block, which mentioned a 2009 bank bailout. What else could that have been but a statement?

What’s ironic is that central banks may be the one group of entities that end up driving up the value of Bitcoin — and thus its chances at succeeding as a form of money and as a store of value.

Fiat Has Gone Insane; Bitcoin Can Answer

Ever since the Great Recession of 2008, central banks have embarked on a crazy journey. Interest rates were cut and copious amounts of money was injected into the economy through open market operations — also known as Quantitative Easing.

During all this, Bitcoin grew. And it grew a lot. In fact, the cryptocurrency now trades at millions of percent higher than where it started. The fundamental backdrop for BTC may only get better in the following months and years.

Hayman Capital’s Kyle Bass joins us to discuss the global market.

“All the central banks of the world, will never let a hard default happen. They will keep printing.” @CNBC @davidfaber @carlquintanilla @saraeisen pic.twitter.com/FMCKc7Lbrh

— Squawk on the Street (@SquawkStreet) August 20, 2019

Speaking to CNBC’s “Squawk on the Street” segment this Tuesday, Kyle Bass, the founder of Hayman Capital Management, explained that he believes that central banks the world over are going “insane”.

He noted that from what he has heard and seen, he expecting for Europe, Japan, China, and the world’s central banks to continue to inject liquidity into the economy like “it’s a pastime”. Bass even stated that he believes that the Federal Reserve will bring the policy rate down to 0%, marking pure dovishness. All this, he describes is central banks going “insane”.

While Bass didn’t mention Bitcoin in this interview, he has previously looked to the digital asset as a potential hedge in these trying times.

Title Image Courtesy of Unsplash

Sourced by Ethereum World News

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