For the first time ever, the bitcoin price — that is, for a full unit of bitcoin — is now worth more in U.S. dollars than an ounce of gold. This is big news for proponents of digital currencies. Of course, not everyone is convinced that bitcoin is a safe or savvy investment, despite increasing digitization of money. Here is a video on bitcoin’s recent surge.
Many investors in bitcoin and other cryptocurrencies believe that digital money is a way to diversify away from the risks of fiat money.
Jim Rickards asserts the next major financial crisis is around the corner, which will usher in the use of Special Drawing Rights (SDRs) as the next global reserve currency to bail out bankrupt nations such as the U.S. He asserts the next crisis could cause the closure or restricted use of banks and other financial institutions for several weeks. He also believes any deflation will be countered by inflation by the world’s central banks — in this respect, his outlook is similar to Michael Pento‘s. Rickards believe tangible assets such as gold, fine art, and real estate will maintain their value during this financial storm.
Here is the interview with Greg Hunter.