Source – YouTube
Mike McGlone says the impending banking crisis will shift perspective.
And it might finally be when mass adoption arrives for Bitcoin.
He’s as knowledgeable about the Cryptocurrency market as they come.
McGlone is a Senior Commodity Strategist at Bloomberg Intelligence and has over 25 years of experience in financial markets, including cryptocurrencies like Bitcoin and commodities like gold, silver, and oil.
He’s a key figure in the ever-evolving financial landscape who says the current banking crisis will kick off a bull run in Bitcoin.
Mike McGlone – Source
“Bitcoin was born out of the last significant financial crisis in 2008 and 2009, and it’s currently defining itself as global digital collateral. As the stock market remains under pressure, Bitcoin has bounced back, rallying significantly this year and becoming more like gold and US Treasury bonds, but with a higher beta.”
Mike believes the recent banking crisis may define Bitcoin as a global digital collateral, with Bitcoin gaining attention as an alternative to traditional banking.
Bitcoin is becoming more like gold but a higher beta version of gold. Bitcoin can hedge against banking issues like gold and Treasury bonds.
The ongoing banking crisis may trigger Bitcoin’s adoption, with people realising it is no one’s liability and entirely independent like gold.
Bitcoin has a definable diminishing supply, and its adoption rate is low as it’s still in its early days. McGlone believes that Bitcoin may outperform other cryptocurrencies like Ethereum in the event of a recession in the US.
Mike McGlone – Source
“Amid the ongoing financial crisis, people realise that Bitcoin is not just a store of value but also a form of global digital collateral in our increasingly digital world. Bitcoin is no one’s project, no one’s liability, and is completely independent, much like gold.”
With its self-custody feature and lack of counterparty risk, Mike says Bitcoin may be an alternative to traditional banks experiencing decreased confidence.
He believes Bitcoin is becoming more like gold and US Treasury bonds, serving as a potential hedge against banking risks.
And regarding the Fed’s recent interest rate hike, Mike believes this will likely lead to a significant recession, with commodities collapsing. The recession will be great for gold, long bonds, and Bitcoin.
He suggests that fully collateralised stablecoins could be much safer than banks, and though they need regulation, it is happening offshore.
Mike believes that if a significant recession were to occur in the US, which he sees as the most likely scenario, Bitcoin would outperform virtually all cryptocurrencies, including Ethereum.
Mike McGlone – Source
“With a diminishing supply and low adoption rates, Bitcoin seems to be reaching an inflexion point as people recognise the potential risks of a fractional reserve banking system. Many are considering alternative options, such as fully collateralised stablecoins or crypto dollars, which could offer more security in the long run. This shift in perspective has many observers wondering if the moment for mass adoption has finally arrived.”
Final Thoughts
By any measure, we’re heading for a recession.
In a recession, banks are likely to suffer as people and businesses default on loans and the value of assets, such as real estate, plummet.
Fractional reserve banking is a system where banks keep only a fraction of their deposits as reserves and lend out the rest.
If many depositors withdraw their funds simultaneously, the bank may need more reserves to meet the demand, leading to a bank run and potential bank failures. During a recession, banks are at a higher risk of failing due to loan defaults and decreasing asset values, which, as we’ve seen recently with two banks in America, could lead to depositors losing their money.
Decreased confidence in the banking system and a shift towards alternative forms of investment and currency could transform Bitcoin from a speculative asset to a safe haven.
As a decentralised and self-custodied asset, Bitcoin is not tied to any particular institution or government, making it a potentially attractive option for those looking to protect their wealth during economic uncertainty.
If people start to lose faith in banks, a shift in perspective could significantly impact the cryptocurrency market driving Crypto prices and increasing its adoption rate.
This article is for informational purposes only; it should not be considered financial, tax or legal advice. You can consult a financial professional before making any significant financial decisions.