Chart for BTC/USD
The next financial crisis will not come from a known unknown. Veteran investors on Wall Street are convinced of that. Before the last crisis, there were investors who could see the events leading to a financial crisis. They hedged against it and some even made a lot of money off it. Today, we are at a similar point. However, the difference is that the known unknown is not known to us. We can speculate, saying it will be an orchestrated stock market hack or a big data failure. That is beside the point. As investors, we need to hedge against the crisis that is looming over.
In the past, you could have bet against the market. However, this time there is a high chance that you may not be able to collect your winnings as the bank or financial institution offering that deal would be under the water itself. So, what then? Gold is a good hedge, right? Not anymore. The manipulation in commodity markets in general and Gold in particular have been exposed over the years. The true supply and demand for Gold is not known. There is a ton of “printed gold” that people hold. When the time to collect comes and the banks cannot produce it before their clients, it will take a toll on the market. This is not a fairytale. These things have been happening. In the past, it did not matter as much because these institutions were too big to fail, so the Fed would bail them out.
Chart for Brave New Coin Liquid Index For Bitcoin
This time, the Fed cannot bail them out and they know it. Sure, they tell you to buy Gold or Silver to hedge against a crisis and they will store it for you. So, they give you a piece of paper which is basically an IOU. That same paper is given to twenty other people for the same one ounce of Gold that you own. The real Gold is lying somewhere in a vault, owned neither by you nor the twenty other people you supposedly share it with. So, knowing this, because they have been doing it for years, what are these financial institutions going to use as the perfect hedge?
Will they dabble in the same manipulated Gold market? Now, let’s say they do find actual bars of Gold to buy at a time when governments are looking to hedge. They will have to spend a ton of money to store and protect it. Furthermore, why would they want to miss out on an exploding cryptocurrency market? The next crisis is not going to be confined to the markets alone. It is going to evolve into a currency crisis. An article from The Economist that was published 30 years ago talked of a single global currency in 2018 known as the Phoenix. We already have that single global currency in the form of Bitcoin (BTC). Short term, markets may make moves on their own, but on the big picture everything lines up as if carefully planned or designed decades before it actually happens.