American investment Bank Bank of America Merrill Lynch conducted a survey among Fund managers and found that now the investors with a bullish sentiment in respect of long-term bonds since the end of 2008. Probably, the shift of interest associated with increase risk of traditional asset classes. In turn, the founder and Director of information technology in cryptopone Morgan Creek Capital’s mark Yusko claims that at the moment additional “insurance capital” — it could even be a Bitcoin — looks feasible.
Evidence of the decline of the world economy
Yusko has tried to interpret the current situation in the financial market in a recent interview with American news channel CNBC about the business.
I think we are now witnessing the biggest bond bubble in history… and there are signs of deterioration of the situation. Unfortunately, this is noticeable in most regions of the world.
Let’s look at the activity on the bond markets of developed countries in several regions. Perhaps we should start with the world’s largest economy. According to Bloomberg, one of the leading providers of financial information for professional financial market participants — now bond yields in the US has a record low for the 30-year period.
Now, look at the yield on government bonds Sweden and Switzerland — one of the strongest and most stable economies in Europe, since 1870. You can not explain that better times for the economies of these two countries are long gone?
Finally, let us turn to the chart on annuities in the UK market from 1700. These bonds are also widely known as console — perpetual debt instrument, which is considered a security. In fact, these rates of return are tied to bonds, which the government may redeem at any time in its sole discretion, even without prior warning.
Of course, all these comparisons in a very long-term sense. However, the long-term trend and the wider the time frame clearly confirm that the skeptics can no longer ignore what is happening and attribute it to local short-term difficulties in the economy.
So can we consider Bitcoin stash?
Judging by historical data and focus on industry standards, at the moment the stock is overvalued even after its recent decline. But if the relative safety of bonds continues to decline, it is understandable why investors are beginning to look for value and backup in other areas of the market and even in other markets.
In an interview Yusko even gave the traders some advice about that long-term investment in Bitcoin can act as a hedge — that is, reducing risk to uncertainty in macroeconomics.
If you check every day the price of BTC, I do not see the bigger picture. The whole point of Bitcoin is that it is a store of value in times of chaos in the market. I called cryptocurrency nest egg under the mattress. We have to think in the long run. Enough to have at least part of the savings in Bitcoin. Not necessarily to plunge into cryptocurrency, but it is reasonable to allocate 1, 2, 3 or even 5 percent of your investment portfolio.
What do you think, can Bitcoin be secure in this unstable time for the world? Keep you money in BTC? Share your vision in our cryptodata millionaires.
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