Asset manager Grayscale concluded in a new report that Bitcoin (BTC) is now the best bet for investors against central bank fiat currencies printing.
In the document titled “Quantitative Tightening,” the world’s biggest digital currency asset manager warned that the US dollar’s “debasement” of unlimited fiat money supply risks.
Grayscale Says Gold Safe-Haven Role “Antiquated”
BTC, the largest cryptocurrency, is an ideal safe haven, setting aside its technical prowess from gold, fiat and government bonds.
“Untenable levels of debt and fears of widespread default are driving the most aggressive monetary policies since Bitcoin’s creation,” the report concludes.
Fiat currencies are at risk of debasement, government bonds reflect low or negative real yields, and issues of delivery highlight the ancient role of gold as a safe haven. In an environment characterized by uncertainty there are limited options to hedge.
Its title is another term coined to describe the effect of the upcoming Bitcoin reward block halving in about two weeks.
While central banks are now engaging in unlimited quantitative easing, or QE, supply for Bitcoin is halving. Other sources call this juxtaposition “quantitative hardening,” which refers to the status of Bitcoin as “hard” money vs. fiat as “easy money.”
“Bitcoin is showing signs of becoming a safe haven while maintaining an asymmetric return profile,” Grayscale’s conclusion summarizes.
And while the world apparently challenges every notion of what’s possible, it’s time to challenge another — that fiat currencies retain their value. It’s time to take Bitcoin to heart.
Despite the immense panic caused by coronavirus in March, Grayscale has fared well. The company now has $3 billion in assets under management, while it emerged earlier this month that it now controls 1.7 per cent of the entire supply of Bitcoin.
The report’s thinly-veiled criticism of central bank policy hardly holds back. Investors, it says, should “understand the effects of government monetary and fiscal intervention”.
That language echoes some of Bitcoin’s best-known supporters, including Saifedean Ammous, who addresses fiat weakness extensively in his popular book, “The Bitcoin Standard.”
Meanwhile, speaking of the latest episode of financial news shows the Keiser Report, Max Keiser reiterated that, as a society, “you can not print your way to prosperity.”