During the history of humanity, almost all the currencies of the world were backed by the stability of gold. Since August 15, 1971, currencies have been roaming around in fluctuating uncertainty, the floating exchange rate regime. But a new monetary standard may be about to emerge from the ashes of the gold metal: Bitcoin (BTC).
A Bitcoin standard, after the famous Gold Standard?
Jeff Booth is the author of the book “ The Price of Tomorrow: Why Deflation is the Key to an Abundant Future ” (released January 2020). He is convinced that massive monetary measures from central banks will eventually kill fiat currencies, based on confidence in issuing states.
In a recent interview with Cambridge House International, Jeff Booth explains why he thinks Bitcoin could become the world’s reserve currency :
“Bitcoin is becoming a very good choice to protect its wealth because it cannot be confiscated (…). I think Bitcoin will continue to rise (…) if it continues to grow like this, I think that one day, other currencies will be backed by Bitcoin (…). I think it is very likely that Bitcoin will become the world’s new reserve currency. “
Bitcoin, the ultimate cure for hyperinflation to come?
With the presses of the state banknotes running at full speed – the American Federal Reserve (FED) in the lead, Jeff Booth details what is, for him, the logical continuation of events:
“All [money]printing will directly enrich asset prices and is stolen from the real economy (…). What will follow is MMT ( modern monetary theory ), helicopter money (printed money distributed to individuals) and all the rest. Once the Fed has lost all its credibility, it is the royal road open to inflation (…). “
Even though he owns both gold and bitcoins in a personal capacity to diversify and not put all his eggs in one basket, Jeff Booth still prefers the youngest of safe havens:
“I am much more bullish on Bitcoin for a variety of reasons. I think it could be the new gold (…). Bitcoin works by network effect (…) when currencies collapse and security becomes an issue, the mobility of gold becomes problematic, while the mobility of bitcoins becomes a primary advantage. “
To make matters worse, Jeff Booth explains that with the arrival of Covid-19 since the publication of his book (in January), the situation has greatly accelerated. This brings the specter of widespread hyperinflation for fiat currencies even faster.
Will Bitcoin play a bigger role in the global economy over time? Will gold be dethroned as a reserve of world currency? It is still too early to tell, but unbridled monetary policies worry some commentators who are usually unwilling to engage in catastrophic predictions.
