Global banks lost trillions in the stock value. The COVID-19 led to a not so good economic outlook among investors. The COVID led to high volatility in the stock market.
Of note, “The drop in banking valuations coincides with a rise in Bitcoin prices.”
In the past, when asked about what happens if interest rates go negative? Buffet stated, “You better own something other than debt,” Buffett says. “I’ve been wrong in thinking you could really have the developments you’ve had without inflation taking hold.”
In response some of the commentators stated Buffet is buying gold, while I consider to buy Tether gold and Bitcoin; yet others stated, I like both real gold and digital currency like BTC. Some of them are left wondering by how Buffet can say all that he is saying but not like BTC.
Someone with empathy for Buffet stated, “Once you will be 80 and your kids will tell you, buy something strange, you will act same 😉 But yes he should buy BTC.”
There still continue to be some who say, Silver not gold, will give you much better gains and easily divisible compared to gold. Who knows maybe holding silver ounces in 2 or 3 years’ time is all we have to barter with; without the government knowing what we are doing, beside some crypto.
Different people have different views towards BTC. Some feel, if your financial advisor is not recommending a small allocation of BTC into your portfolio, it’s time to find one that does.
Sydney Ifergan, the crypto expert tweeted: “Bitcoin (BTC) is bullish and set to rally for the foreseeable future. Those who are sensible will now see their way to profit from it.”
Some of them have to say that both Bitcoin and gold have deflationary nature and that’s why it doesn’t matter what you are buying now, just don’t trust banks.
Bitcoin (BTC) as a Legitimate Investment Asset
Bitcoin is already a significant part of the global financial system. BTC is useful to both individuals and institutions in different ways. BTC is gaining recognition as a legitimate investment asset, which is likely to become better than cash and therefore a principal holding for several institutions.
It is expected that the Federal Reserve will keep the interest rates at near Zero due to the COVID for the long term and this can lead to financial disruption. The USD is falling down. This could mean that lot of attention will get diverted to Bitcoin and other cryptocurrencies.