Entrepreneur and popular author Jeff Booth has predicted a grim future for fiat currencies, expecting them to fail as central banks keep printing money. Foreseeing an unavoidable, severe depression and banking failure, he believes bitcoin will become the world’s reserve currency and all national currencies will be pegged to it.
‘Highly Likely’ Bitcoin Will Become the Reserve Currency
The author of “The Price of Tomorrow: Why Deflation is the Key to an Abundant Future,” Jeff Booth, has made the case that bitcoin will become the world’s reserve currency and all national currencies will eventually be pegged to bitcoin. Booth published his book in January, detailing why we are due for a financial reset and a new economic framework. The entrepreneur also founded Canada-based technology company Builddirect, an online marketplace for home improvement products.
In an interview with Cambridge House International, published last week, he discussed the current economic situation and why he is more bullish on bitcoin than any other asset class. He began by explaining the consequences of what the Federal Reserve is doing right now. “All of the printing is going directly into asset prices and it’s being robbed from the greater economy,” he described. “What’s coming next is MMT, helicopter money, and everything else. And once the Fed loses its credibility then all bets are off in inflation so the Treasury essentially will become the Fed and print money and can distribute that money to [the] population, and then you are going to lose currencies all over the world.”
Moreover, Booth predicts that “interest rates are going to continue to go down until currencies fail,” emphasizing that central banks are artificially keeping interest rates low. The Federal Reserve recently pledged to keep interest rates near zero for several years, after it announced a policy shift to push up inflation.
To preserve wealth in this environment, Booth diversifies and cautioned against putting all wealth in one asset class. While having both gold and bitcoin in his investment portfolio, he affirmed, “I am much more bullish on bitcoin for a variety of reasons. I think it could be the new gold … bitcoin works on a network effect.” The popular author elaborated:
[Bitcoin] should keep on growing and I think one day other currencies will be pegged to bitcoin … I think it’s highly likely that bitcoin becomes the reserve currency.
He noted that “Gold is valued where it is for the exact same belief that it will be pegged to currencies,” asserting that bitcoin is a much better bet than gold, and more importantly, everyone’s portfolio “must” include bitcoin. In addition, “When currencies break and safety becomes an issue, portability of gold is really difficult,” he warned, adding that “The portability alone of bitcoin for safety reasons becomes paramount.”
When asked about the biggest challenge bitcoin faces, he said government bans are the number one concern. However, he expressed: “I see that as a very low probability … because of game theory. So in a competitive world where every region needs to attract wealthy people, businesses. If regions ban it, other regions accept it faster.” He outlined that if a country tries to stop bitcoin, “it creates more of an incentive for other countries to accept it and build rules around it,” pointing to Switzerland as an example.
Booth also shared his view on the future of the stock market. “The stock market is teetering. You feel like it’s about to collapse and that’s all around stimulus. Without more stimulus, expect a downward spiral … if stimulus stopped that downward spiral would take stocks down 80%,” the author opined. However, he firmly believes that governments will not let this happen and will print their way out in order to prevent it.
While his book highlights a more optimistic outlook since he wrote it shortly before the coronavirus crisis, Booth now sees a grimmer future, as trends have been accelerated by the covid-19 pandemic. “It accelerated the monetary easing and now there just isn’t a way out without a severe depression and banking failure,” Booth opined, adding:
Bitcoin becomes a really good choice to protect wealth and what’s happening because it cannot be confiscated … I think bitcoin will go up, largely up, like a macro theme.
Do you think bitcoin will become the world’s reserve currency? Let us know in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
