Max Keiser, Wall Street vet and host of RT’s Keiser Report, says he believes countries will seek refuge in Bitcoin as fiat currencies fail on a global scale.
In a new installment of Blockchain Interviews, Keiser says the gold market won’t be able to satisfy a surging appetite for safe-haven assets.
“You work through the numbers and there’s just not that much [gold] around. If you needed to buy 300 tons of gold you’re not going to find it, not at the current price. It’s going to be like ‘Okay I’ll sell you 300 tonnes of gold but I’m going to sell it to you at $25,000 an ounce, you can have all you want at $25,000.’”
Keiser expects demand for truly scarce assets to push governments around the world to eventually come around and see the value of Bitcoin.
“So then we need hard money. I think that’s where you’re going to see these central banks turn to Bitcoin and sovereign wealth funds. They’ll be like, ‘Well this Bitcoin this has been around now for 11-12 years. It’s 99.9% fail-proof and it’s got everything we want in hard money.’
You’ll see countries start to accumulate Bitcoin and start to mine for Bitcoin as well, and then they’ll start to subsidize the money they would be subsidizing the energy industry in and subsidizing that in the Bitcoin mining space. So then the game theory kicks in. So, for example, Iran right now has something like 2% of the global hash rate of Bitcoin…
Let’s say suddenly they’ve got 5% of the hash rate… So then America says ‘Wait a minute this is like the Sputnik moment. Iran could potentially be the richest country in the world if they have a significant piece of Bitcoin,’ and the price goes to $400,000 to compete with gold…so then they (America) start to subsidize their mining.”
