Bitcoin Is Better Than Gold and Is the Best Bet Against Central Banks Says Hedge Fund CIO
Most investors have lost at least some of their faith in Bitcoin because of how bad the bear market of 2018 was. However, as 2019 is here, more and more people are starting to believe again. Today Travis Kling, the Chief Investment Officer of Ikigai, a crypto hedge fund based in Los Angeles, who worked as a Point72 executive before, talked about the future of the asset.
According to the CIO of the company, which was launched in October last year, now is the perfect time to bet on Bitcoin against the Central Banks. He believes that the best way to be protected from the mistakes of the government and Wall Street is to use BTC.
You Should Hedge Bitcoin Against Fiscal Irresponsibility
Basically, Kling is very against how central banks just keep printing money. He believes that they are irresponsible and that governments spend too much. It is a quite popular opinion, in fact, as a lot of people from the financial world are afraid that powerful governments like the one from the United States can actually go bankrupt some day.
Bitcoin, on the other hand, is the exact opposite of financially irresponsible, because the asset actually has an anti-inflation plan that will make the money more valuable in the future than it is now, which is why he is so bullish with this asset.
He affirms that some financial instruments that are provided by the central banks today are likely to collapse in the future and that they may have caused the recession of 2008. He basically believes that, by making these mistakes, the world is “writing the script” for cryptos taking over in the future.
Another investor, Ryan Selkis, from Messari, believes that in the middle of a recession caused by inflation, people are likely to go to Bitcoin as they see their capital shrinking drastically. Then, they will go to digital gold, Bitcoin.
It is quite funny when you consider that JP Morgan, which is against cryptos, has confirmed that they are more likely to be used in a “dystopian society” because they are a good escape plan in case things are not going well. The high adoption of Bitcoin in Venezuela is a good example of this.
The whole argument is that Bitcoin is not really viable today but it may be the greatest asset in a world in which fiat is not trustworthy anymore and that traditional equities are not on the right track anymore.
Anyone following the U. S. government knows how the debt of the country has skyrocketed in the last decade. The main discussion is whether the government will be able to handle this or not and Kling is on the team of people that believe that it will not.
Bitcoin, as deemed by the investor, will be the ultimate tool against financial irresponsibility mostly because it will be like a credit default swap for monetary policies that go wrong, a sort of an insurance policy.
According to Kling, Bitcoin is sort of like an inevitable force in the world. It is a non-sovereign asset which is highly deflationary and has a decentralized nature. Because of this, he deems it as the perfect and most important “opt-out of history” and affirms that this may be the beginning of how “Austrian Economics” will take over society.
It is interesting to observe that he is an absolute bull on Bitcoin and that he seems to be quite sure that the asset will survive and last for a long time. At the moment, he believes that the prices are dropping because there is simply not a lot of demand, but the way that central banks act will inevitably lead to a need for BTC.
Finally, after all the crisis caused by external and governmental actors, the world will see Bitcoin as the way to end the crisis and keep the wealth of the people who will be losing everything.
He has also affirmed that the next bull market will come from the current shortcomings of the crypto industry and that a lot of people will give up before the market is ready. More regulation will come and more exchanges will be gone, but Bitcoin, according to him, will survive in the end because it is way better than gold, the world is just not convinced of that yet.
Crypto Trading Can Be Dangerous
The main problem is that crypto investing can be quite dangerous while the revolution has not happened yet. The main argument against Kling is basically that Bitcoin is too volatile right now and that you can just invest later.
After reaching $20,000 USD at the beginning of 2018, the asset went to barely over $3,000 USD and a lot of investors got burned.
Because of this, the investors who believe in what Kling is promising might be better off if they decided to just buy BTC at its low price now and simply keep it because he is sure that the conditions for the growth will happen.