bitcoin-news/grayscale-bitcoin-price/” rel=”nofollow noopener” target=”_blank”>Renowned economist Peter Schiff has warned of an imminent decline in the US dollar and the country’s economy. If his warning is anything to go by, then cryptocurrencies could be defended and bitcoin in particular.
The US dollar on the verge of a historic fall
in a mail Peter Schiff shared on his X (formerly Twitter) that the US dollar is on the verge of a historic decline. He highlighted how this could affect the country’s economy as inflation, interest rates and unemployment would skyrocket. The economist seems to believe that the currency crash will be catastrophic, as he says: “It’s a crash and a fire.”
Schiff continued to support his point in a later comment. mail. He claimed that the US economy is already in recession. He noted that although the country’s GDP grew 5.2% in the third quarter, government spending contributed 5.5%. He also alluded to the fact that this money spent was borrowed money and did not reflect “real economic growth.”
He rang A note of caution for those who want to invest in bonds to protect themselves against this economic crisis. According to him, the economy is weaker than the feds believe, and this would lead to larger budget deficits and bitcoin/trouble-for-bitcoin-price/” rel=”nofollow noopener” target=”_blank”>higher inflation. In his view, this is bearish for bonds.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/11/Crypto-Analyst-Who-Sold-Bitcoin-Top-Reveals-How-to-Buy" alt="Tradingview.com bitcoin Price Chart” width=”2650″ height=”1530″/>
btc bulls hold above $37,000 | Source: BTCUSD on Tradingview.com
bitcoin could be the most viable alternative
In all of this, Schiff seemed to be defending gold, as he stated that the world would turn to it as the “most viable alternative” to avoid getting burned. However, it can be argued that cryptocurrencies (bitcoin in particular) are a better alternative. In one of his publicationsHe hinted that gold was underperforming, and from that the example could be taken of why crypto tokens may be better.
Despite being in a bear market, bitcoin is one of the ethereum/ethereum–crypto-analyst-1900/#:~:text=If%20that%20happens%2C%20Ethereum%20could,its%20current%20price%20of%20%241%2C600.” rel=”nofollow noopener” target=”_blank”>best performing assets of the year. Fidelity Investments’ Head of Global Macro, Jurrien Timmer, recently made a good case for bitcoin. Timmer highlighted how bitcoin‘s features allow it to be a “high-powered hedge against monetary shenanigans.”
Compared to other asset classes, Timer also noted how bitcoin stood out. The flagship cryptocurrency provided the best risk-reward ratio with a 58% return based on data ranging from 2020 to this year. In terms of dips and rallies, bitcoin also stood out with an 84% gain from its 2-year low.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-267116 aligncenter" src="https://bitcoinist.com/wp-content/uploads/2023/11/bitcoin-risk-reqad.png?w=512&resize=512%2C298″ alt=”bitcoin Risk Reward” width=”512″ height=”298″ data-recalc-dims=”1″/>
Source: Fidelity Investments
Specifically, Timmer stated that government bonds “can’t compare” to bitcoin‘s risk-reward math. Compared to gold, the Fidelity director also suggested that bitcoin was better than gold, considering he labeled it “exponential gold.”
Featured image from E-Commerce Times, chart from Tradingview.com
