Bitcoin News

Bitcoin May Emerge as a Safe-haven Instrument in US to Tackle Deflationary Death Spiral


Investors in the United States of America are apprehensive as they fear that the economy is shifting towards the first recession after 2009. Meanwhile, several experts in the US are of the opinion that the country’s economy may face another crack as the market indicators suggest that recession may hit the US economy. Despite the tall claims of Federal Reserve Chairman, Jerome Powell, that US economy is in good shape, current developments paint a sad story of the country’s economy.

The prominent issues that President Donald Trump-led US is facing include the ongoing trade and currency war with arch-rival China. Trump and the Fed are engaged in a tussle as the former wants the central bank to decline the current interest rates to zero or lesser.

Meanwhile, Mark Yusko, founder, CEO & Chief Investment Officer of Morgan Creek Capital Management, has seen a silver lining in the present gloomy scenario. He has asserted in the latest edition of ‘Keiser Report: Make Recession Great Again’ that,

one of the things that should occur in an environment where the dollar weakens, right, that the dollar should weaken if they’re creating more of them that should actually be good for real assets, but we are seeing the exact opposite.

Yusko concurred to host Max Keiser’s report that the thought of printing money may not prove helpful in fighting deflation, and it may create one. The statement was made amid the deteriorating US Dollar continued to remain in headlines.

Despite the present chaos in the US market, Bitcoin and Gold showcased a positive connection and displayed a falling trend when everybody anticipated them to surge high.

Investors usually look for a safe refuge when markets are in deep turmoil. The current situation termed as “deflationary death spiral” by Yusko may position Bitcoin as a safe instrument at a time when even the cryptocurrency is in the unenthusiastic state. Yusko added that Bitcoin might emerge as a potential cure to all this chaos. As per the American investor, weakening trends are persisting across the board of all real tangible assets such as commodities, gold, and Bitcoin.

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