Max Keiser: Bitcoin’s And Gold’s Price Are Expected To Rise Due To A Global Financial Crisis
- Bitcoin and gold could work as safe haven assets during a financial crisis
- Max Keiser believes Deutsche Bank current situation is a threat to financial stability
In a recent episode of the Kaiser Report, Max Keiser talked about macroeconomics and global politics and which could be the role Bitcoin and gold play in this environment. Max Keiser explained that the Deutsche Bank could affect the entire economic system. Since 2006, Deutsche Bank stock price was over $110. A few hours ago, it was just under $6.3. This is a reduction of 94% in over ten years and without any sign of recovery in the short-term.
Bitcoin And Gold To Deal With A Crisis
Keiser considers that Deutsche bank is the most likely major bank to go bankrupt, which is expected to require a bailout. This is something similar to what happened in 2008 and 2009. Keiser explained that the accounting fraud at Deutsche Bank was just one of the main issues that could trigger a financial crisis.
He considers the bank is currently sitting on half a quadrillion worth of derivatives that are worth nothing. He has also explained that this is, in fact, the “beginning of Lehman 2.0.”
According to him, this is the reason why gold is currently moving up. Investors are currently discounting a major economic collapse. Bitcoin is also growing because of this reason. Gold, for example, has reached $1,400 per ounce.
About it, Keiser commented:
“This is why Bitcoin which is the virtual digital version of gold no matter what Peter Schiff says it is Gold 2.0. That’s now definitively been the case, don’t come at me with all of your crazy conspiracy nonsense, and so we enter into another phase of the global financial crisis right now.”
Bitcoin is considered to be an uncorrelated asset that could be useful in case there is an economic or financial crisis. However, Bitcoin has never been in the middle of a financial crisis, and indeed, the digital currency was born from one. That means that it might be possible to see this new asset behave positively during a crisis, helping users and investors store money.
Currently, Bitcoin is getting closer to $10,000. The digital currency is being traded around $9,700 and it has a market capitalization of $172 billion. According to CoinMarketCap, in the last 24 hours, Bitcoin grew 4.72%.