A popular Bitcoin whale has expressed his opinion on what the world will be like in the coming months. A prominent investor explains how he views the substitution of Bitcoin and gold for the US dollar.
There are countless opinions on the possible changes that could occur in the world as a consequence of this coronavirus pandemic. Many people, including economists, politicians, and doctors, are concerned about trying to give a clue as to humanity’s destiny. In this regard, a well-known Bitcoin whale presents his point of view on an imminent economic shock worldwide.
This prominent Bitcoin whale, known as Joe007, is the most profitable trader on Bitfinex’s leaderboards. In his Twitter account, the Bitcoin whale stated that the current world situation could become even worse, reaching an unprecedented economic shock. To better understand what this Bitcoin whale says, it is necessary to know that he considers himself to be an investor and an “economic historian.”
Warning Investors of Imminent Economic Shock
Joe007 also notes that the impending crisis is likely to unfold in waves, each of which will have its own set of problems and approaches. He even referred to it as the biggest economic shock that the current generation will ever experience.
Besides, he said that the focus of the crisis will move through different areas and that the attempts to alleviate and resolve it will lead to increasing disorder.
On previous occasions, this Bitcoin whale noted in his Twitter account that the economic reality in which humanity had lived before 2020 ended. According to Joe007, all human beings will confront a new and harsh reality, which can last for another 20 years.
Impact on Bitcoin
As the crisis worsens, the US Federal Reserve (Fed) could turn interest rates to negative levels. Raoul Pal, a prominent investor, discussed this situation in a recent thread of tweets. There, he indicated that he foresees that the Fed will reach -2% whilst the yields of 10-year bonds will also turn negative.
According to this expert, the world’s focus will be on three main assets: the US dollar, gold, and Bitcoin. He argues that people will eventually drift away from the US fiat currency as its value weakens, eventually focusing entirely on BTC and the precious metal.
Consequently, Pal believes that the market could become bullish for BTC in the medium and long term, within 18 to 36 months. Also, it is possible to observe that this professional, as well as others on previous occasions, coincides with the Bitcoin whale.
As global chaos grows, there is a greater need for a “hard or stable currency” than ever before. Even though there has been a delay to its demand, it is likely to grow in the years, and decades, to come.
No one knows exactly whether that “hard currency” will be Bitcoin or gold, or whether the US dollar will completely weaken as a global reserve asset. These are subjects that experts have discussed in various contexts, and even Anthony Pompliano and Peter Schiff have recently addressed them.
By Alexander Salazar