Bitcoin is increasingly being viewed as a store of value, even US politicians are now accepting this notion as investors grow increasingly wary of fiat and its propensity for devaluation. One of the biggest fears is a repeat of the global financial crisis which wiped billions off stock markets and plunged economies into turmoil.
SEVEN FINANCIAL CRISIS TRIGGERS
The next one could be closer than we think and there are a number of trigger events that may set the avalanche in motion which would lead to a massive reallocation of assets in our financial system. Fund manager behind Bitcoin Capital, Simon Dixon, highlighted some of the events that could trigger the next economic collapse.
Government debt is out of control in most major global economies which have been using financial markets to borrow excessive amounts of money. The debt is so large now that governments cannot meet their financial liabilities and it has gone into a negative return. There is an ever-increasing debt ceiling in the US as the debts spiral out of control which could trigger another meltdown.
A second trigger event could be the stock market which propped up by debt rather than natural consumption. The central bank also injects money into the markets by lending at artificially low rates through schemes such as quantitative easing. With billions entering the economy, some of the larger companies can have excessive profits which enable them to have stock buyback schemes. These could eventually turn investors off the stock and bond markets. Read More at Bitcoinist...