Renowned Economist Peter Schiff has warned about an imminent fall in the US Dollar and the country’s economy. If his warning is anything to go by, then a case could be made for cryptocurrencies and Bitcoin in particular.
US Dollar On Verge Of Historic Crash
In a post shared on his X (formerly Twitter), Peter Schiff stated that the US dollar is on the verge of a historic crash. He highlighted how this could affect the country’s economy as inflation, interest rates, and unemployment would soar. The economist seems to believe that the fall in the currency will be catastrophic as he says, “It’s crash and burn.”
Schiff went on to back up his point in a subsequent post. He stated that the US economy is already in recession. He noted that although the country’s GDP grew by 5.2% in Q3, the government’s spending contributed 5.5% to this. He also alluded to the fact that this money spent was borrowed money and didn’t reflect “real economic growth.”
He sounded a note of warning to those who may be looking to invest in bonds to hedge against this economic downturn. According to him, the economy is weaker than the Feds think, and this would result in larger budget deficits and higher inflation. This, he believes, is bearish for bonds.
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 making a case for Gold as he stated the world would turn to it as the “most viable alternative” to avoid getting burned. However, cryptocurrencies (Bitcoin in particular) can argued to be a better alternative. In one of his posts, he hinted at how Gold was underperforming, and one could take a cue from that as to why crypto tokens may be better.
Despite being in a bear market, Bitcoin is one of the best-performing assets of the year. The Director of Global Macro at Fidelity Investments, 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.
In comparison to other asset classes, Timer also noted how Bitcoin stood out. The flagship cryptocurrency provided the best risk-reward with a 58% return based on data ranging from 2020 to this year. In terms of drawdowns and rallies, Bitcoin also stood out with an 84% gain from its 2-year low.
Source: Fidelity Investments
Specifically, Timmer stated that Government bonds “can’t hold a candle” to Bitcoin’s risk-reward math. In comparison to Gold, the Fidelity Director also suggested that Bitcoin was better than Gold, considering that he labeled it as “exponential gold.”