Crypto Investor Considers FED Decision Being Bullish For Bitcoin And The Next Big Boom
- Travis Kling is bullish about Bitcoin due to the policies that central banks are taking
- Other analysts consider that Bitcoin is going to work as a safe haven asset during a crisis
- A few days ago, the Chairman of the U.S. Federal Reserve, Jerome Powell, talked about cryptocurrencies, including the recently launched Libra digital asset. He claimed that virtual currencies are not big enough to represent a threat to Wall Street yet. Moreover, he added that there is innovation in the space and that we should be paying attention to it.
FED’s Chairman’s Comments Are Bullish For Bitcoin
At the moment, Powell does not seem to be concerned about Bitcoin and other digital currencies. However, there are several investors that consider that the digital currency could continue growing and become a recognized means of payment or a store of value.
Travis Kling, a former portfolio manager at Point72, considers that the banking strategies that the Federal Reserve and other financial institutions around the world are taking are completely wrong. He considers that the Quantitative Easing policy is one of the most irresponsible and largest monetary policy experiments in human history.
Moreover, after the latest Federal Reserve press release on Wednesday, Bloomberg considers that the Fed Funds rate prediction for the next 13 months has a 100% to receive a cut. This means that there is going to be more money printing and more quantitative easing.
Some individuals believe that these policies are going to affect the general economy and lead to hyperinflation. However, just a few countries are experiencing high inflation rates during the last years, Venezuela, Argentina and Zimbabwe are just some of these examples.
CENTRAL BANKERS HAVE NO PLAN TO END THE LARGEST MONETARY POLICY EXPERIMENT IN HUMAN HISTORY.
Bullish a non-sovereign, hardcapped supply, global, immutable, decentralized, digital store of value. pic.twitter.com/9MIXirU12V
— Travis Kling (@Travis_Kling) May 28, 2019
Thus, he claims that he is “Brazenly bullish” for a non-sovereign, hard capped supply, global, immutable and decentralized store of value. This is what Bitcoin is currently representing. There are just 21 million Bitcoin that are going to be ever released to the market, the new issuance of BTC is reduced every four years and demand remains stable or keeps growing, which is expected to have a positive effect on the price of the digital asset.
Moreover, Mr. Kling predicted that virtual currencies were going to be the “best performing” asset class of 2019. Until now, Bitcoin and other cryptos are indeed outperforming many other financial assets.
Max Keiser, another recognized crypto supporter and Bitcoin analyst, said that the virtual currency could be used in the future alongside gold as a store of value to protect users’ funds. He said that the current situation of financial entities, such as Deutsche Bank, are going to start a new crisis in which Bitcoin is going to play a very important role.