According to Max Keizer, gold tends to become more scarce, increasing demand for Bitcoin
Max Keizer’s opinion comes in a context of economic concern, especially in the United States with the release of unemployment data in the country.
According to information from the InfoMoney, the US currently has 6.65 million unemployed, a scary number. The main justification could not be otherwise: the social isolation necessary to fight the coronavirus is violently affecting the American economy.
As a result, the country’s economy begins to feel the heavier effects of the crisis, in a scenario that even trillion-dollar injections of money by the Fed (United States Federal Reserve) may not be enough to contain the losses caused:
“What normally takes months or quarters to happen in a recession is happening in a matter of weeks,” said Michelle Meyer, chief economist at Bank of America Merrill Lynch in the United States.
However, the number of unemployed did not prevent traditional markets from showing gains on the day, with gold also rising.
It is within this scope that Max Keizer, a businessman and analyst at Twitter, argues that the widening of the crisis will make people try to protect their capital. As a result, the demand for gold should continue to rise, which raises the price and makes the asset rarer in the market.
According to the website BTC EG, Keizer would have said that such an occurrence would cause people to rush to Bitcoin, as a reserve of alternative value to gold:
“I foresee – and this is not just the end use case, but the final irony – that when people realize they can’t get gold, they will start to gather en masse in Bitcoin.”
In one thing Keizer is right: the demand for security assets has been increasing with the crisis and, more and more, it is expected to keep increasing.
And we don’t just talk about gold or Bitcoin, but silver, platinum and palladium tend to get more and more attention as the economic crisis progresses. If you haven’t started creating your reservations yet, it may be time to do so.