While some have suggested bitcoin's meteoric rise signals a potential cryptocurrency bubble, RT's Max Keiser says fiat currencies like the US dollar are collapsing against it.
“I think we are seeing fiat currencies in a hyperinflationary collapse against bitcoin,” he said, adding that we’ll see a major price correction somewhere at the $25,000 per bitcoin level. “Up until that price is achieved it looks like we’ll see a pretty strong upward move.”
On Monday, the digital currency smashed another all-time high, trading above $9,700 on growing signs of mainstream adoption by institutional investors.
According to Keiser, there is a huge market for other cryptocurrencies, but bitcoin has an entrenched network that is now growing exponentially. It is beyond the reach of any competition, of any nation-state and any cooperation to defeat it, the host of ‘Keiser Report’ said.
“Bitcoin is a perfect currency, something that is utterly changing the global finance and market and is putting banksters and the central banks out of business,” which, according to Keiser, “should be applauded because they’ve been horribly bad actors. We need to get rid of them and let bitcoin transform our world.”
He also suggested an interesting scenario that bitcoin could become “something of a financial black hole” and all cash that is currently invested in stocks and bonds is moved over into bitcoin. That will lead to a stock or bond market crash, or both, as “we see the price of bitcoin move into that $25,000 range.“
“That’s something that no central bank or country will be able to stop, and it’s becoming a real scenario, a real threat.”
Talking about bitcoin mining, Keiser said the energy required for that is quite significant as it costs around $2,000 to create a single bitcoin and therefore giving it real intrinsic value. “As the demand for bitcoin rises the energy will be there to meet that demand – that’s the way capitalism works,” he said.
For anyone who wants to enter bitcoin at this time, the former stockbroker recommends reading as much as possible. “Don’t just buy a bitcoin without knowing about it first. That way, when a correction does come and it inevitably will, you have some intellectual foundation to keep you in the game and to not panic sell. If you panic buy you could just as easily panic sell,” he explained.
Keiser dismissed concerns about bitcoin hacking, saying the core bitcoin blockchain itself has never been hacked while being immutable. That’s why it is “so alluring and attractive.”