A Bloomberg commodities expert believes that after the biggest economic crisis, assets such as cryptocurrencies, US bonds and gold will show unprecedented growth.
Mike McGlone in an interview with Kitco News declaredwhich predicts a “great reversal” or a deep correction in high-risk assets, including bitcoin and company stocks:
“It may be reminiscent of the aftermath of 1929. Although I am more inclined to the version that it will be more like the consequences of the 2008 crisis or maybe the consequences of the 1987 crash. The current crisis has been brewing for a long time, there are many high-risk assets around, from apartments in Miami and Toronto to the stock market.
According to an analyst at Bloomberg, the biggest inflation in the last 40 years is starting.
“Once we get through this period, bitcoin will become one of the best assets on the planet to hold, just like gold and US bonds. I think we’re back to deflation, and the best way to get deflation is to raise prices sharply and then drop them. This is what we do. We are at the beginning of a crisis,” McGlone said.
The analyst argues that in the context of the revival of the cryptocurrency markets, Ethereum should be considered along with Bitcoin. According to McGlone, this happened due to the formation of massive cryptocurrency sectors based on Ethereum, such as stablecoins and non-fungible tokens (NFTs):
“Ethereum is revolutionizing the world of financial technology and tokenization. After all, most NFTs are based on Ethereum. Now there are many competitors, but it is Ethereum and Bitcoin that show what is really happening in the crypto space.”
In May, the European Central Bank warned that the high correlation between cryptocurrencies and stock markets would no longer allow diversifying an investment portfolio with digital assets. According to the regulator, cryptocurrencies can no longer protect against shocks in the stock market.
Source: Bits
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
