Bloomberg’s Mike McGlone predicts economic disaster after which bitcoin takes over
Mike McGlone, Bloomberg commodities veteran, predicts an economic disaster scenario in which gold, US government bonds and bitcoin will rise from their ashes stronger than ever. In a new interview with Kitco News, McGlone says he expects the “big reversal” or a deep correction in equity markets and real estate.
The big reversal
Inflation is rising all over the world and central banks are trying to put the brakes on by raising interest rates. The downside of these rate hikes is that they put pressure on the economy and hurt financial markets. According to McGlone, the worst is yet to come.
“What I think is going to happen is ‘the great reversal’. We have only just begun. It could be like the aftermath of 1929, but I think it will be like 2008 or like the crash of 1987,” said McGlone, who predicts a true disaster scenario for the global economy.
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According to the analyst, almost all risk assets will soon feel the pain. From real estate in Miami and Toronto to the stock markets. If McGlone is to be believed, we have only just begun, and that will be caused by the greatest inflation in 40 years, the most severe inflation in the life of the majority of the population.
Bitcoin one of the best assets in the world
Once we get through that period, McGlone expects the financial world to realise that bitcoin is one of the best assets in the world to hold. “That’s my base case,” said McGlone who is extremely positive about the future of bitcoin.
“My view is that the best assets to hold are gold, long-term US bonds and bitcoin. I definitely think we are going back to deflation and the best way to cause that is to have a big rise in prices and then let them fall completely into the ground. That’s what we’re doing,” McGlone said of the future of the economy.
So McGlone expects deflation and that is a scenario the current financial system is not built for, but bitcoin in the long term theoretically fits perfectly.
