Known to his legion of fans as Crypto Michaël, BeInCrypto took time out to chat about the looming crisis, what effect the halving will have on Bitcoin’s price and how inflationMost people who know anything about the economy have heard the word inflation. It is usually thrown around as a… More will affect the crypto industry.

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The current crisis has made the future quite unpredictable, he notes. However, there are two asset classes that stand the best chance of survival: cryptocurrencies and commodities.

Bitcoin’s Golden Opportunity

A crisis is on the horizon, Michaël believes. He told BeInCrypto:

“The overall global economy is on the edge of going really bad. If people have watched “The Big Short“, that’s literally what’s going to happen again, but then on a bigger scale.”

With hundreds of millions of people losing their livelihoods, most world governments continue to inject liquidity into a bloated system through stimulus packages.

However, the distribution has been anything but effective. Not surprisingly, most of the money ends up in the hands of large companies and banks. Those who need it most are still unable to access it, Michaël explains.

However, the crisis has created a golden opportunity for Bitcoin, he goes on:

“I guess crypto will be benefitting from a downturn in the economy, as it’s designed to benefit from such an event. […] In the long-term, it’s bullish for crypto.”

The recent Bitcoin halvingBitcoin halving is when the amount of new bitcoin created and earned by miners is cut in half. This happens… More makes crypto even more ideal in the face of a monetary crisis. While the Fed, the ECB, and other central banks print money, Bitcoin’s supply has actually halved. This makes it a safer bet against inflation that will inevitably come.

What the Future Holds

The future of the global financial system looks bleak. Ideally, a vaccine for COVID-19 will emerge and things will return to normal. However, if that doesn’t happen, governments around the world will have to step in before the system collapses.

One critical thing they must do is ensure that the stimulus gets to the intended targets, Michaël believes. In the midst of social unrest, big corporates reward their top executives while simultaneously firing their employees.

The current economic system desperately needs a complete overhaul to avoid repeated crises. A system structured around bailouts will eventually fail, he believes.

Check out the full interview here.

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As a leading organization in blockchain and fintech news, BeInCrypto always makes every effort to adhere to a strict set of editorial policies and practice the highest level of journalistic standards. That being said, we always encourage and urge readers to conduct their own research in relation to any claims made in this article.
This article is intended as news or presented for informational purposes only. The topic of the article and information provided could potentially impact the value of a digital asset or cryptocurrency but is never intended to do so. Likewise, the content of the article and information provided within is not intended to, and does not, present sufficient information for the purposes of making a financial decision or investment. This article is explicitly not intended to be financial advice, is not financial advice, and should not be construed as financial advice. The content and information provided in this article were not prepared by a certified financial professional. All readers should always conduct their own due diligence with a certified financial professional before making any investment decisions. The author of this article may, at the time of its writing, hold any amount of Bitcoin, cryptocurrency, other digital currency, or financial instruments — including but not limited to any that appear in the contents of this article.