According to Raoul Pal (former director of Goldman Sachs’ hedge fund sales department), in the past few months, all kinds of analysts – from Bitcoin admirers to Wall Street professionals – have delineated a future recession.
Is it worth buying Bitcoin?
The general notion of a future recession has led many investors to the question: What should they buy to insure their risks?
According to one well-known economist and former Wall Streeter, Bitcoin is one of the leading hedging tools because it can play a major role in a future financial system that may not be based on Fiat, as it is today.
Interesting in the section: BitPay Wallet for storing Bitcoin
Raoul Pal has reiterated his views in a recent Twitter feed, promoting cryptocurrencies as a way out of a potential recession.
According to Pal, most of the world's assets – from securities to commodities (except for Bitcoin) – are placed into the volatile territory.
Pal is currently predicting a potential yield collapse of up to -4% for the US, which will be a complete shift in the finances paradigm. Given the rate cuts in Europe and Japan, this is possible.
Although Pal wrote that these charts might be just a coincidence, the reality is that a recession is about to come. This, he said, should cause investors to buy bonds, dollars, diamonds and, of course, Bitcoin.
Earlier last week, the US-China trade war intensified again, and countries increased their export tariffs. Investors are buying gold and Bitcoin to protect themselves from losses.
Editor: Yuliya Soroka