Bitcoin can be a safe haven to hedge against the Federal Reserve’s inflation policy
Veteran investor George Ball revealed that he has changed his mind about Bitcoin and other cryptocurrencies. Ball, CEO of financial services firm Sanders Morris Harris and former CEO of Prudential Securities, believes bitcoin may be the best option for investors seeking a safe haven from the Fed’s economic efforts. George Ball, a longtime Bitcoin rival and managed investor, has changed his mind about Bitcoin and cryptocurrencies. Ball sees Bitcoin as a safe haven against the Fed’s inflation policies.
Ball admitted to being a long-time opponent
of Bitcoin, the blockchain industry and cryptocurrencies. However, recent measures
taken by the government and the FED to counter the effects of the coronavirus
pandemic have changed his mind. Ball said this about Bitcoin and the current
I’ve never said this before, and I’ve
always been a blockchain, cryptocurrency, and blockchain opponent, but if you
look right now, the government can’t stimulate the markets forever. The
liquidity flow will end. Sooner or later, the government’s got to start paying
for all of the stimulus, the deficits, and the very smart and well-deserved
subsidies that it is providing to the people.
Bitcoin as a safe haven
When the coronavirus pandemic emerged, the
traditional financial market collapsed and Bitcoin followed suit. However, the
first cryptocurrency by market capitalization has strengthened in terms of
performance in recent months. At press time, Bitcoin still stands above the
important $12,000 mark with bullish predictions.
Therefore, it seems to be a better option
than other traditional assets, such as stocks and especially fiat currency. In
that sense, Ball said that future government measures to boost the economy
could have the opposite effect and lead investors to put their money into
Are they going to raise taxes that high? Or
if not, are they going to print money? If they print money, that debases the
currency. And probably, even things like TIPS – Treasury Inflation-Protected
Securities – can be corrupted, and the very wealthy investor or the trader
probably will turn to Bitcoin or something like it as a staple.
Ball added that investors could also turn
to Bitcoin as a safe haven from taxes that the government might try to
implement. In the short term, Ball believes cryptocurrencies could be used as
The notion is not too high to seek a tax
refuge but to have something that can’t be undermined by the government, and it
won’t become worthless… If the ‘Robin Hooders’ don’t want to trade stocks as
they have, where are they going to put their money? There are no yields today,
and so Bitcoin or another cryptocurrency becomes either a long-term ‘I want to
make a safe haven for my money’ or a short-term speculative bet and I think
it’s where many people will turn after Labour Day.
Author : Reynaldo