Bitcoin will replace gold as the asset performing the insurance function the market needs. This is the prediction made by Clem Chambers – prominent author, financial journalist, speculator, and analyst – who currently writes for Forbes, Business Mirror, Inversionista, Index Trader, Gulf News and YTE.
Chambers is optimistic with regards to Bitcoin, and earlier this month was quoted as saying: “will Bitcoin go back over from its previous high? It will probably hit $2,000 before it hits $20,000 … But will it hit $20,000? I think so. Will it hit $100,000? I think that’s quite likely.”
More recently, Chambers said the following: “crypto, and right now Bitcoin especially, is the new gold. It is better at doing what gold lovers like to do with gold, store it for the day before the end of the world when they expect gold will be the only thing that will retain value. Even without crypto replacing gold for this job, gold isn’t actually good insurance for when the world comes unpicked. As people that swapped their gold for a cigarette in WW2 found out, gold is not great money. However, there is a market need for an asset as insurance again disaster and gold has filled that niche for a very long time: it is now losing the niche to Bitcoin and losing it fast.
“We are going to have to see if a new trend forms before we know which path we are on, but if the bear market trend is left behind, the next crypto-boom will be on its way. Bitcoin will then take over gold’s primacy as the place to stash money for times when the wheels come off global stability.
“What caused Bitcoin sudden unexplained spike was Chinese devaluation. It was the insider reaction to imminent, planned, significant and perhaps rolling Chinese currency devaluation that set off this rally. It was a group of insiders buying Bitcoin for Chinese yuan before the devaluation that took place two days later struck. This devaluation process has been going on for weeks but it accelerated last week. Very rich and powerful people, in the know, dumped their yuan for Bitcoin, as Bitcoin may as well be dollars and can become dollars quickly. If the (Trump) trade wars go into meltdown, then Bitcoin will ‘moon’ because huge amounts of Chinese currency will be swapped for BTC as the yuan-denominated super-rich move to be hedged from the wealth privations of devaluation. Bitcoin, not gold, is and will be the asset they will run to first.”
Evidently Chambers is amongst those that believe in the revolutionary potential of blockchain and cryptocurrencies. In his opinion, “the blockchain will be the way of the future which will be like the internet was to the generation before. Bitcoin will probably be part of that future in the long term.”