Bitcoin is winning the war of safe haven, seeing a business just adding $ 115 million in Bitcoin to its balance sheet.
Property management giant Stone Ridge confirmed that it made a massive purchase through the New York Digital Investment Group (NYDIG), which has more than $ 1 billion in assets under management.
The Fed needs to print $ 5 trillion by 2021
“The macro landscape versus the public health landscape has made many people rethink the composition of their portfolios,” the company’s new CEO, Robert Gutmann, told Forbes on October 13.
Michael Saylor, CEO of MicroStrategy purchased $ 425 million of Bitcoin in August and September, replied:
“When trillions of dollars on the balance sheets of banks, wealth managers, insurance companies, foundations and family companies start to move to the Bitcoin space, they will need companies companies as NYDIG instructions. It can be reduced to 1 billion dollars or more ”.
This news comes when a new report warns that the US Federal Reserve (Fed) will need to print $ 5 trillion next year.
Announced on October 12, a report by economists Lawrence Summers and David Cutler calculated the indirect cost of the corona virus to be $ 16 trillion.
“Total costs are estimated to be over $ 16 trillion, or 90% of the annual US gross domestic product. For a family of 4, the estimated damage would be close to $ 200,000, ”the report summarized:
“About half of this is the income lost due to the recession caused by COVID-19, the rest is the economic impact of a shorter and less healthy life.”
Commenting on the results, David Rosenberg, chief economist at Rosenberg Research & Associates concludes that the Fed alone will need to print $ 5 trillion in liquidity by 2021.
This will add to the insecurity that began with mass printing of money this year, bringing the national debt of the United States to more than $ 27 trillion.
Rosenberg told Twitter followers to buy gold, but for Max Keizer, there is an obvious alternative that makes more sense.
“Gold works well, but Bitcoin is the fastest horse in the race,” he wrote in reply to Rosenberg.
Bitcoin hit a peak of $ 11,690 on Tuesday before reverting back to $ 11,400 right now, a monthly gain of 10.5% and an annual return of 60%. As The Bitcoin Journal reported, there are growing hopes that in the short term further returns, possibly even reaching $ 17,000 if $ 12,000 is moved in support.
From a V shape to a K shape
For the fiat economy, however, the picture looks a lot bleaker, according to new comments from the International Monetary Fund (IMF).
Speaking to CNBC last week, IMF Director-General Kristalina Georgieva said that the prospects for many countries are not now a V-shaped recovery but a K-shape.
“Most countries will face uneven recovery and we see in many cases the“ K ”, with parts of the economy doing really well, and parts of the economy doing well. The other is significantly decreasing, ”she predicted.
For Keizer, this is the textbook definition of a phenomenon he calls “neo-feudalism.” This involves concentrating more wealth in the world closer to the state at the expense of those who are farther away, creating a modern equivalent between lords and peasants.
“The intense concentration of wealth created by Covid becomes eternal. This will be a new Dark Era, ”he tweeted on Wednesday.
“Bitcoin fixes this”.