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A number of factors and metrics point to a potential economic meltdown looming just around the corner. With disaster possibly inbound, there are a number of questions that investors and even the general public should be asking ahead of crisis coming to a head – questions that Bitcoin is the common answer to.
The Man Who Called the Last Financial Crisis Poses Critical Questions
You probably have heard the name Peter Schiff, notably for his negative comments towards Bitcoin and cryptocurrency.
Love him or hate him, though, he accurately nailed a prediction that the housing market would bring forth a recession back in 2008.
Related Reading | The Coronavirus May Be The Best Reason Yet To Own Bitcoin
That recession, and the various bank bailouts, is partially what prompted Satoshi Nakamoto to create Bitcoin.
The first-ever cryptocurrency’s origins are so heavily steeped in recession, a headline from The Times referencing key moments during the recession can be found in the earliest block added to Bitcoin’s chain.
Schiff is back at it once again, making headlines for what he calls a stock market bubble bursting and what may ultimately become the worst recession the world has ever witnessed.
In response to chaos hitting financial markets and fears spreading rapidly, the pro-gold supporter has posed a number of questions he recommends investors and the rest of the population must ask themselves to better prepare for the coming crisis.
Here are the questions everyone should be asking. What happens when the U.S. dollar crashes? What happens to Treasuries when the dollar crashes? What happens to corporate bonds when Treasuries crash? What happens to the stock market and the U.S. economy when interest rates soar?
— Peter Schiff (@PeterSchiff) March 6, 2020
Of the most significant of Schiff’s questions, and the factor that starts the entire ripple effect on the economy, is “what happens when the US dollar crashes?”
How Bitcoin Answers the Most Important Questions Investors Are Asking
Peter Schiff is referencing the fact that each time the economy struggles, more fiat currencies are printed, providing a temporary boost to growth, but also delaying the inevitable.
Governments have inflated economies with fiat currencies printed at whim, to the point of devaluing these currencies to dangerous levels. And with debt soaring to all-time highs, a collapse of the dollar could have serious implications.
But the answer to these questions and the solutions to these issues lie in the precious metal he regularly promotes, and in the digital currency, he despises the most: Bitcoin.
Gold has been in use for thousands of years, but more recently, it’s become a safe haven asset for investors to move wealthy during economic downturns.
The only problem is, gold in its physical form is a very poor choice as a currency. So while investors will likely move capital to gold like they always do, it doesn’t properly solve the problem of fiat currencies dying off.
Bitcoin, however, offers nearly every beneficial attribute that makes gold special and valuable, including scarcity and its ability to act as a store of wealth.
Related Reading | Move Over Bitcoin: Pro-Gold Peter Schiff Blasts the Stock Market Bubble
But because Bitcoin doesn’t exist in a physical form it is infinitely better as a currency and replacement for fiat than gold.
Bitcoin was designed during the last recession as a means to prevent these events from occurring in the future. With the first recession here since the asset was first created, the world will finally get to see if Bitcoin lives up to its lofty expectations and saves the world from the total collapse of the fiat-driven, government-controlled economy.
