Bitcoin price has been slowly but steadily rising for the past months. As more and more signals that suggest an incoming bull run keep appearing, optimistic prognoses regarding the long-time future of the most valuable cryptocurrency are also getting increasingly popular. Recently, the entrepreneur and author Jeff Booth decided to share his outlook on bitcoin’s future with the crypto community.
Booth, author of the popular book “The Price of Tomorrow: Why Deflation is the Key to an Abundant Future” and the founder of Canada-based tech company Builddirect, has discussed the current state of the global economy in an interview with Cambridge House International. The focus of the interview published last week was bitcoin, and specifically, how the economic situation will affect BTC price and the digital currency’s ultimate future.
The world economy
Booth believes that the world’s economy will not be able to successfully deal with the effects of the coronavirus pandemic. Although Booth’s book has been published before the start of the pandemic, he claims that COVID-19 has only accelerated the mechanisms that were already in place long before. Central banks were printing fiat currency ever since the gold standard was abolished, but the pandemic-related stimulus packages greatly increased the rate at which the governments print money. For Booth, it’s a sign of an imminent, worldwide economic depression, and a severe crisis of the entire economic system built around fiat currency and central banking.
Devaluation of Fiat-money
Booth predicts that the unrestrained money printing will lead to a massive devaluation of the dollar and other fiat currencies: “once the Fed loses its credibility then all bets are off in inflation”, he says. However this grim outlook on the world’s economic situation is precisely what makes Booth so bullish on Bitcoin - he believes that as inflation gains momentum, people will turn to deflationary assets like BTC and gold.
Optimism about Bitcoin
Although Booth has revealed that he owns both bitcoin and gold, and he encourages everyone to diversify their portfolio, he also states that he is “much more bullish on bitcoin”. Booth claims that BTC “could be the new gold”, and he even goes as far as saying that “everyone’s portfolio must include bitcoin”.
Booth believes that bitcoin’s major advantage over gold is its portability. As national fiat currencies start to rapidly lose value, people will flee to BTC - the asset that not only is immune to inflation, but unlike gold, it’s also very easy to store and transfer. According to Booth, when the fiat system collapses, bitcoin may even go from a safe haven asset to the world’s reserve currency - the dominant form of money to which all national currencies are pegged.