Grayscale Investments, a company that has worth $ 1.2 billion crypto assets under management (AUM), claims that Bitcoin today surpasses traditional fiat currency and gold as for global liquidity crisis.
Three shades of gray
The study compares five macroeconomic events in the recent past, when Bitcoin could play a positive role:
- Greek banking shutdown and almost exit from the EU in 2015;
- Structural devaluation of the Chinese yuan in 2015 and 2016;
- Brexit 2016;
- the growth of geopolitical risk in the United States at the end of 2016;
- and the escalation of trade tensions in the United States and China last month.
– While it is still very early in Bitcoin’s life cycle as an investable asset, we have identified evidence supporting the notion that it can serve as a hedge in a global liquidity crisis, particularly those that result in subsequent currency devaluations. Our conceptual understanding of Bitcoin’s properties, observations of its past responses to macroeconomic shocks, and increasing support from some of the top thought leaders in the investment management industry reinforce the idea that Bitcoin could play a pivotal role in the construction of more efficient portfolios with continued adoption.
Researchers also identify three characteristic features that “give BTC strength in times of crisis and during periods of normal economic growth”:
- Store-of-value characteristics similar to real assets like gold, with hard-money attributes like immutable scarcity.
- Spending characteristics similar to cash. Today, you can spend Bitcoin with over 100,000 merchants worldwide including Whole Foods, AT&T, Microsoft and Overstock.com, to name a few. Bitcoin also has trading pairs with every major fiat currency, making it a ubiquitous medium of exchange.
- Growth characteristics of a new technology as real applications for blockchain technology and decentralized digital assets continue to emerge and create value, stimulating further demand.
Well, what to say? You are dead – fiat currency, bankers, Rotshilds, Rockefellers and Baruchs.