It feels like the last few months have become the end of an era. One of the leading Bitcoin whales or “whales” today states that he believes the world will experience one of its greatest economic shocks in history.
This event could fundamentally change the structure and dynamics of society, which is in the efforts of governments and central banks around the world in curbing economic decline, which might actually worsen the problem.
One investor and “economic historian” explained that this chaos might change the focus of the world into three assets, which have the potential and have proven to be bullish for medium and long term Bitcoin.
Bitcoin’s “Whale” Warns Investors to Survive the Surprise Wave of the Economy
J0E007, a prominent Bitcoin “whale” who is usually seen harvesting large-scale trading profits at the top of Bitfinex’s global ranking board, responded to this statement on Twitter that he believes the current world economic situation is very bad.
He said that the coming crisis was likely to develop into waves, with each wave coming with a number of different problems and focus.
“This will be the biggest economic shock for our generation. This event will develop into several waves over time, give false hope, and then destroy it. The focus of the crisis will shift in various fields. Efforts to alleviate and resolve a crisis will cause even more chaos. “
Another sentiment comes from other Bitcoin “whales”, he said that based on economic reality, we all live before 2020 ends. As soon as this year is over, new, more difficult realities will emerge and will likely last for 20 years.
What does this have to do with Bitcoin?
One way that the Federal Reserve might do when the crisis worsens is to apply negative interest rates.
Raoul Pal, a prominent investor, spoke of this application in a tweet on his Twitter recently, saying that he saw the Fed spending funds reaching -2% while the 10-year bond rate also slipped into the negative zone.
He thinks that this event will place the world’s focus on three main assets, namely the US Dollar, Gold and Bitcoin. These focuses are slowly shifting away from the USD because the value is weakening, and are entirely focused on Bitcoin and precious metals.
“Dollar, Gold and Bitcoin still make the most sense. These days, and what will happen, only gold and Bitcoin. This is a view of 18 months to 36 months in the future. Hopefully there will be many counter-trends moving along the way. We must continue to navigate that matter. “
As global chaos escalates, the need for so-called “paper money” does not become higher than before. Likewise, the demand for banknotes is increasingly lagging, this possibility will continue to grow until the years (and even decades) in the future.